Walmart Inc. 10-K Summary: Fiscal Year Ended January 31, 1999
Business Context and Reporting Period
This Form 10-K covers the fiscal year ended January 31, 1999, for Walmart Stores, Inc., the world's largest retailer by total revenues. The Company operates through three primary segments: Wal-Mart Stores (U.S. discount stores and Supercenters), SAM'S Club (U.S. warehouse clubs), and International operations. As of the reporting date, the Company employed approximately 910,000 associates globally. A two-for-one stock split was announced on March 4, 1999, with a record date of March 19, 1999.
Key Financial Metrics
Revenue: Total net sales for the fiscal year were $137,634,000,000. Segment sales were as follows:
- Wal-Mart Stores: $95,395,000,000
- SAM'S Club: $22,881,000,000
- International: $12,247,000,000
- Other (McLane Company): $7,111,000,000
Profit, Cash Flow, Margins, Debt, and Liquidity: The provided filing text does not contain specific values for net income, operating margins, cash flow from operations, total debt, or liquidity ratios. These figures are incorporated by reference to the Annual Report to Shareholders (Pages 26-38) and are not present in the text provided.
Material Changes vs. Prior Period
Store Count Growth:
- Wal-Mart Stores: Ended the year with 2,433 total units (1,869 discount stores and 564 Supercenters), an increase of 71 units from the prior year.
- SAM'S Club: Ended the year with 451 clubs, an increase of 8 units.
- International: Significant expansion occurred, particularly in Germany and Mexico. Total international units grew to include 95 hypermarkets in Germany and 416 units in Mexico.
Acquisitions:
- Germany: Acquired 74 units from the Interspar hypermarket chain (transaction closed Dec 29, 1998). Results will be included in fiscal 2000.
- Korea: Acquired a majority interest in four existing units and six undeveloped sites from Korea Makro. Results are included in fiscal 1999 operations.
Guidance, Outlook, and Risks
Management Commentary: The Company emphasizes its competitive position based on "Everyday Low Price" and value. Seasonality remains a factor, with the highest sales volume typically occurring in the fourth fiscal quarter.
Risks and Contingencies: The filing identifies several factors that could materially affect results, including cost of goods, competitive pressures, inflation, consumer debt levels, currency exchange fluctuations, trade restrictions, and Year 2000 issues.
Legal Proceedings: The Company settled environmental claims in Honesdale, Pennsylvania, agreeing to a $25,000 fine and a $75,000 community project (reimbursed by third parties). A proposed settlement of $200,000 with the U.S. Army Corps of Engineers regarding wetlands filling is pending (expected to be reimbursed).
Investor Verification Checklist
- Verify specific net income, operating margins, and cash flow figures in the incorporated Annual Report to Shareholders (Pages 26-38).
- Confirm the impact of the March 1999 two-for-one stock split on share count and per-share metrics.
- Review the integration progress and financial performance of the Interspar (Germany) and Korea Makro acquisitions in subsequent filings.
- Assess the status of the Year 2000 compliance initiatives mentioned as a risk factor.
- Monitor the outcome of the proposed settlement with the U.S. Army Corps of Engineers.