Walmart Inc. (ticker symbol: WMT) manages both a traditional brick-and-mortar retail store network as well as an online retail presence. The business is well-known for its "everyday cheap pricing" approach, which it employs while selling a broad range of products related to the home, clothing, electronics, food, and more. The business is active in 24 countries and has around 10,500 physical shops and clubs in addition to 46 banners for its online retail outlets. More than 2.3 million individuals are now working for the company, most of which are located in the United States. Traditional stores like Target Corporation (TGT) and e-commerce enterprises like Amazon.com Inc. are examples of some of Walmart's rivals in the retail industry (AMZN).

Walmart's Financials

Midway through February, Walmart published its financial results for the fourth quarter (Q4) of its fiscal year (FY) 2022, which covered the three months that concluded on January 31, 2022. The firm declared a net income of $3.6 billion attributable to its shareholders, which is a remarkable reversal from the net loss of $2.1 billion reported in the same quarter of the previous fiscal year. The revenue was up 0.5 percent compared to the previous year (YOY). Walmart's operating income as a criterion for determining the level of profitability of each of its separate business divisions increased by 7.3% year over year to reach $5.9 billion.

Walmart said that the sale of some business activities had a negative effect of $10.2 billion on the company's sales for the quarter. However, the business reported that its Walmart locations in the United States increased market share in the food sector. The company's online retail sales increased by 1% year over year and 70% compared to the same three-month period that occurred two years before.

Walmart's Business Segments

The three reportable divisions that Walmart uses to organize its business activities are Sam's Club, Walmart United States, and Walmart International. The first two of these divisions comprise Walmart-branded shops and items organized according to geographic location, while the third comprises Sam's Club warehouse stores. In other words, operating income is Walmart's only profit metric for its customers. As was indicated earlier, Walmart recorded an operating income for the fourth quarter of the fiscal year 2022 of $5.9 billion. Included in this figure is a loss of $677 million that was assigned to "corporate and support." Walmart reported an additional $1.3 billion in sales for the fourth quarter of the fiscal year 2022 under the category "membership and other income," in addition to the three categories depicted here.

Walmart U.S.

The Walmart U.S. sector accounts for the lion's share of the company's overall revenue. It is a representation of Walmart shops in the United States, including Puerto Rico and Washington, D.C. This sector includes not just "Walmart" shops but also "Walmart Neighborhood Market" outlets, in addition to a number of other e-commerce companies. In the fourth quarter of the fiscal year 2022, Walmart United States recorded an operating income of $5.2 billion on net sales of $105.3 billion. This accounts for 79 percent of the operating profits for the firm and 69 percent of its net sales for the quarter. In the fourth quarter of the fiscal year 2022, Walmart's operating income in the United States climbed by 0.3 percent yearly. The year-over-year rise in net sales was 5.7%.

Walmart International

Walmart International encompasses all of Walmart's businesses that are located in countries other than the United States. The corporation has wholly-owned subsidiaries all over the globe, including in Africa, Asia, Central America, and other regions. Walmart International's scope extends to supercenters, hypermarkets, and online shopping platforms.

This accounts for 18 percent of the total net sales for the quarter and 13 percent of the company's operating profits. The only division to report a year-over-year loss in this area was Walmart International's operating income, which fell by 13.7 percent during the fourth quarter of the fiscal year 2022. Net sales declined 22.6 percent YOY.

Sam's Club

The majority of the United States is covered by Sam's Club's operations, which are warehouse clubs open solely to members. In contrast to the other two categories, membership income is a significant contribution to the operating income generated by this sector. In addition, customers may shop online at Sam's Club using the website samsclub.com.

In the fourth quarter of the fiscal year 2022, Sam's Club recorded net sales of $19.2 billion and an operating income of $549 million. This accounts for 13 percent of the total net sales for the quarter and 8 percent of the company's operating profits. Operating income at Sam's Club increased by 41.1 percent year over year during the fourth quarter of the fiscal year 2022, while net sales increased by 16.5 percent year over year. This reflected the section of Walmart's business with the largest net sales increase.