Walmart Inc. 10-K Summary: Fiscal Year Ended January 31, 1996
Business Context and Reporting Period
This Form 10-K covers the fiscal year ended January 31, 1996. Walmart Inc. operates as America's largest retailer through three primary formats: Wal-Mart discount stores, Sam's Club warehouse membership clubs, and Wal-Mart Supercenters. The company operates domestically across all 50 states and internationally in Mexico, Canada, Puerto Rico, Brazil, Argentina, and Indonesia (via joint ventures or management agreements).
Key Financial Metrics
- Net Sales: $93,627,000,000 for the fiscal year.
- Store Count (Domestic): 1,995 Wal-Mart stores, 433 Sam's Clubs, and 239 Wal-Mart Supercenters.
- International Presence: 131 Canadian stores, 41 units in Mexico, 11 in Puerto Rico, 3 in Argentina, and 5 in Brazil.
- Employees: Approximately 675,000 associates (an increase of 53,000 for the year).
- Profit Sharing: $204,000,000 contributed to associate profit sharing plans for the fiscal year.
- Stock Outstanding: 2,293,548,492 shares as of March 31, 1996.
- Market Value: Aggregate market value of non-affiliate voting stock was approximately $31.36 billion (as of March 29, 1996).
Note: Specific figures for net income, operating margins, cash flow, and total debt are not provided in the text of this filing, as the financial statements are incorporated by reference from the Annual Report to Shareholders.
Material Changes and Growth
- Store Expansion: Domestic store count increased to 2,667 total units (including Supercenters and Sam's Clubs) from 2,558 the prior year. Net square footage grew to approximately 278 million square feet.
- Acquisitions: Completed the acquisition of 122 Woolco department stores in Canada in fiscal 1995, which were converted to Wal-Mart stores.
- International Expansion: Entered the Argentine market in fiscal 1996 and signed an agreement to open Indonesia's first Wal-Mart Supercenter. Expanded joint ventures in Mexico and Brazil.
- Product Mix: Domestic sales are split evenly between Softgoods (25%) and Hardgoods (25%), with Stationery/Candy (11%), Records/Electronics (10%), and Pharmaceuticals (9%) comprising the remainder.
Outlook, Risks, and Management Commentary
- Expansion Plans: Plans to open 60-70 new Wal-Mart stores and 100-110 Supercenters domestically (approx. 90 Supercenters via relocation/expansion). International plans include 25-30 new units across Argentina, Brazil, Canada, China, Indonesia, Mexico, and Puerto Rico.
- Seasonality: Sales volume is seasonal, with the highest volume in the fourth fiscal quarter and the lowest in the first.
- Competition: Competes with discount, department, drug, and specialty stores. Competitive strategy relies on "Everyday Low Price" and value programs.
- Risks: Forward-looking statements are subject to risks including general economic conditions, changes in consumer spending, availability of capital, and competitive factors. There is no assurance that planned expansion will proceed as scheduled due to construction or weather delays.
- Legal: No material pending legal proceedings reported.
Investor Verification Checklist
- Verify specific Net Income, Operating Margin, and Cash Flow figures in the "Consolidated Statements of Income" and "Cash Flows" referenced in the Annual Report to Shareholders (Pages 23-26).
- Review the "11 Year Financial Summary" (Pages 18-19 of the Annual Report) for historical trend analysis of revenue and earnings per share.
- Confirm the status of the 122 Canadian Woolco store conversions and their impact on profitability in the detailed financial notes.
- Assess the capital expenditure requirements for the planned opening of 170+ new domestic units and international expansion.
- Review the "Management's Discussion and Analysis" (Pages 20-22 of the Annual Report) for detailed commentary on the $93.6 billion sales figure and margin drivers.