Walmart Inc. 10-K Summary: Fiscal Year Ended January 31, 1997
Business Context and Reporting Period
This Form 10-K covers the fiscal year ended January 31, 1997. Walmart Inc. is the largest retailer in the United States by total revenues. The company operates three primary domestic formats: Wal-Mart discount stores, Sam's Club warehouse membership clubs, and Wal-Mart Supercenters. As of the reporting date, the company operated 1,960 Wal-Mart stores, 436 Sam's Clubs, and 344 Wal-Mart Supercenters domestically.
Internationally, the company expanded its footprint through joint ventures and acquisitions in Mexico, Canada, Puerto Rico, Brazil, Argentina, China, and Indonesia. The company employs approximately 728,000 associates.
Key Financial Metrics
The filing provides the following specific financial data for the fiscal year ended January 31, 1997:
- Net Sales: $104,859,000,000
- Market Capitalization (Non-Affiliates): $37,486,838,461 (based on March 31, 1997 closing price)
- Shares Outstanding: 2,265,535,740 (as of March 31, 1997)
- Profit Sharing Contributions: $247,000,000 for the fiscal year
Note: The filing text incorporates detailed financial statements (Income Statement, Balance Sheet, Cash Flow) by reference to the Annual Report to Shareholders. Consequently, specific values for net income, operating margins, total debt, and cash flow are not explicitly stated in the provided text.
Material Changes and Growth
The company reported significant expansion in store count and square footage compared to the prior year:
- Domestic Store Count: Total domestic units increased to 2,740 (up from 2,667 in 1996).
- Supercenter Growth: Wal-Mart Supercenters increased by 105 units to a total of 344.
- International Expansion: Entered the People's Republic of China and Indonesia in fiscal 1997. International store counts grew in Mexico, Canada, and Argentina.
- Employee Growth: Associate count increased by approximately 53,000 year-over-year.
- Profit Sharing: Contributions increased from $204 million in 1996 to $247 million in 1997.
Guidance, Outlook, and Risks
Expansion Plans (Fiscal 1998):
- Domestic: Plan to open approximately 50 new Wal-Mart stores and 100 Supercenters (70 via relocation/expansion). Also plans 5-10 new Sam's Clubs and 4 distribution centers.
- International: Plans to open 30-35 new units across Argentina, Brazil, Canada, China, Indonesia, Mexico, and Puerto Rico.
- Forward-Looking Statements: Actual results may differ due to competitive pressures, inflation, consumer debt levels, currency fluctuations, and trade restrictions.
- Seasonality: Sales volume is highest in the fourth fiscal quarter and lowest in the first.
- Competition: Faces competition from discount, department, drug, and specialty stores, as well as wholesale clubs.
- Legal: No material pending legal proceedings reported other than routine litigation.
Management emphasizes a strategy of "Everyday Low Price" and value. The company launched a co-branded credit card program with Chase Manhattan Bank, operated without recourse to the company. No single supplier accounted for more than 4.6% of purchases.
Investor Verification Checklist
- Verify the specific Net Income and Operating Margin figures in the "Consolidated Statements of Income" referenced on page 26 of the Annual Report to Shareholders.
- Review the "Consolidated Balance Sheets" (page 27) for total debt levels and liquidity ratios, as these are not detailed in the text provided.
- Confirm the details of the "Consolidated Statements of Cash Flows" (page 29) to assess capital expenditure requirements for the planned expansion.
- Check the "11 Year Financial Summary" (pages 22-23) for historical trend analysis of sales and earnings per share.
- Review the Proxy Statement for details on executive compensation and director elections.