Walmart Inc. 10-K Summary: Fiscal Year Ended January 31, 1995
Business Context and Reporting Period
This Form 10-K covers the fiscal year ended January 31, 1995. Walmart Inc. operates as America's largest retailer, serving customers domestically and in Puerto Rico through three primary formats: Wal-Mart discount stores, Sam's Club warehouse membership clubs, and Wal-Mart Supercenters. As of the reporting date, the company operated 1,990 Wal-Mart stores, 428 Sam's Clubs, and 143 Wal-Mart Supercenters.
The company has expanded internationally through joint ventures in Mexico (50% interest with CIFRA), Hong Kong and China (50% interest with Ek Chor), and Brazil (60% interest with Lojas Americanas). It also acquired 122 Woolco stores in Canada in March 1994, operating 123 Canadian stores by year-end.
Key Financial Metrics
- Net Sales: $82,494,000,000 for the fiscal year.
- Profitability: Specific net income, operating profit, and margin percentages are not provided in the text of this filing; they are incorporated by reference from the Annual Report to Shareholders.
- Cash Flow and Liquidity: Specific cash flow figures and liquidity ratios are not provided in the text; they are incorporated by reference.
- Debt: Specific debt obligations are not detailed in the text, though the filing notes that several distribution facilities are subject to mortgages securing loans.
- Market Capitalization: The aggregate market value of voting stock held by non-affiliates was approximately $36.04 billion as of March 31, 1995.
- Share Count: 2,297,580,232 shares of Common Stock outstanding as of March 31, 1995.
- Employees: Approximately 622,000 full- and part-time associates.
Material Changes and Operational Growth
During the fiscal year, the company added 111 new Wal-Mart stores, 22 new Sam's Clubs, and 75 new Wal-Mart Supercenters. Total net square footage increased by approximately 25.8 million square feet to 252.1 million square feet.
Key strategic developments include:
- Canada Expansion: Completion of the Woolco acquisition, converting stores to the Wal-Mart format.
- International Ventures: Establishment of joint ventures in Mexico, Hong Kong/China, and Brazil, though operations in Argentina and Brazil had not commenced by year-end.
- Store Conversions: Conversion of approximately 69 older Wal-Mart stores into Supercenters.
Guidance, Outlook, and Risks
Expansion Plans for Fiscal 1996:
- Open 90 to 100 new Wal-Mart stores, 9 new Sam's Clubs, and 12 new Supercenters.
- Expand or relocate approximately 70 older Wal-Mart stores and 4 Sam's Clubs.
- Convert 80 to 85 older Wal-Mart stores into Supercenters.
- Construct three new full-line distribution centers.
- Add approximately 20 to 25 new international units.
Risks and Contingencies:
- Seasonality: Sales and net income are highest in the fourth fiscal quarter and lowest in the first.
- Competition: Intense competition from discount, department, drug, and specialty stores, as well as wholesale clubs.
- Execution Risk: No assurance that planned expansion will proceed as scheduled due to construction delays, weather, or other factors.
- Legal: No material pending legal proceedings other than routine litigation.
Investor Verification Checklist
- Verify the specific Net Income and Operating Margins in the incorporated Annual Report to Shareholders (Pages 17-25), as these figures are not explicitly stated in the 10-K text.
- Review the Consolidated Statements of Cash Flows to assess liquidity and capital expenditure trends.
- Confirm the status of the international joint ventures (Mexico, China, Brazil) and their contribution to consolidated earnings.
- Examine the debt structure related to the mortgaged distribution facilities and any new financing for the planned 1996 expansion.
- Monitor the conversion rate of older stores to Supercenters to ensure it meets the 80-85 unit target for the upcoming fiscal year.