Walmart’s Q4 2016 Results – Comments

I found various notable items in Walmart’s Q4 2016 management call transcript (pdf) dated February 18, 2016.  (as well, there is Walmart’s press release of the Q4 results(pdf))

I view Walmart’s results and comments as particularly noteworthy given their retail prominence and focus on low prices.  I have previously commented on their quarterly management call comments; these previous posts are found under the “paycheck to paycheck” tag.

Here are various excerpts that I find most notable:

comments from Doug McMillon, President and CEO, page 4:

Overall, this past year has been a year of investment, operational improvement and change, even while we delivered solid growth. We do see an underlying strength in our Walmart U.S. business that wasn’t there a year ago.

comments from Greg Foran, president and CEO of Walmart U.S., page 9:

Secondly, in January, we announced the closing of 150 U.S. stores, including all 102 of our Express format locations. Closing stores is never an easy decision, but it’s necessary to ensure we are positioned to deliver our long-term plan. Strengthening the Supercenter and Neighborhood Market formats, while simultaneously delivering a seamless experience with e-commerce, will require our full attention. In fact, we expect to open more than 135 stores in fiscal 2017 alone. While we know that closing stores affected a number of our associates, I’m proud to say that more than half of these associates have already received offers or have been placed in open roles in nearby stores, and we're moving aggressively to identify other open positions for the remaining associates who are interested in transferring to new locations.

comments from Greg Foran, president and CEO of Walmart U.S., page 13:

We opened 69 supercenters this year, including relocations and conversions, and 146 traditional-format Neighborhood Markets. In FY17, we expect to open 50 to 60 supercenters, including relocations and conversions. We’ll also open 85 to 95 Neighborhood Markets. Additionally, we plan to further expand our online grocery program to more markets this year. As we have discussed in the past, we are committed to growth, but we’ll do it sensibly, with the customer in mind as we select the right locations, products, and service offerings for each store.

_____

The Special Note summarizes my overall thoughts about our economic situation

SPX at 1926.82 as this post is written