702 Sw 8th St. Bentonville, AR 72716 United States Phone : 479-273-4000 Fax : 479-277-1830 http://www.walmartstores.com
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WELCOME
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Table of Contents 2Company Overview
Key Information 2
Key Financials 2
Company Rankings 2
Key People 3
4Company Description
6Company History
8Industry Information
9People
People 10
Board Members 12
12Biographies
S. Robson (Rob) Walton 13
Michael T. (Mike) Duke 13
Charles M. Holley 14
Karenann K. Terrell 15
Linda P. Hefner 16
Thomas A. (Tom) Mars 16
Stephen F. Quinn 17
Jack L. Sinclair 17
James A. (Andy) Barron 18
Michael J. Bender 18
M. Susan Chambers 19
David Cheesewright 20
Leslie A. Dach 20
Cindy Davis 21
Johnnie C. Dobbs 21
Jeffrey J. (Jeff) Gearhart 22
Duncan C. Mac Naughton 22
C. Douglas (Doug) McMillon 23
Michael S. (Mike) Moore 24
Gisel Ruiz 24
William S. (Bill) Simon 25
Raul Vazquez 26
John T. Westling 26
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Eric S. Zorn 27
Jeff Davis 27
Michelle J. Gloeckler 28
Matt Kistler 28
Pamela K. (Pam) Kohn 28
Steve Nave 29
J. P. Suarez 29
Andrea Thomas 29
Steven P (Steve) Whaley 29
Carol A. Schumacher 29
Neil M. Ashe 30
Rosalind G. Brewer 31
Shelley G. Broader 31
A. J. (Andy) Clarke 31
Steve Dacus 32
Sylvia Mathews Burwell 32
Scott Price 32
Timothy Flynn 33
P. Todd Harbaugh 33
Steve Smith 34
David (Dave) Tovar 34
Aida M. Alvarez 34
James W. (Jim) Breyer 35
M. Michele Burns 35
James I. Cash 36
Roger C. Corbett 37
Douglas N. Daft 38
38Historical Events
38Company Financials
Financial Summary 38
Annual Income Statement 40
Quarterly Income Statement 41
Annual Balance Sheet 42
Quarterly Balance Sheet 43
Annual Cash Flow 44
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Quarterly Cash Flow 45
Earnings Estimates 46
Financial Market Data 47
Historical Financials 48
49Competition
Competitors List 49
Competitive Landscape 51
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Company Overview 702 Sw 8th St. Bentonville, AR 72716 United States Phone : 479-273-4000 Fax : 479-277-1830 http://www.walmartstores.com
Wal-Mart Stores is an irresistible (or at least unavoidable) retail force that has yet to meet any immovable objects. Bigger than Europe's Carrefour, Metro AG, and Tesco combined, it's the world's #1 retailer with some 2.2 million employees. In the US, Wal-Mart operates more than 4,000 stores, including 3,000-plus Supercenters that sell groceries and general merchandise, 610 Sam's Club warehouses, and a growing number of smaller format stores. The company's faster growing international division (28% of sales) numbers more than 5,600 locations; Wal- Mart is the #1 retailer in Canada and Mexico and has operations in Asia (where it owns a 95% stake in Japanese retailer SEIYU), Africa, Europe, and South America.
Key Information DUNS Number 051957769
Location Type Headquarters Subsidiary Status No Manufacturer No Company Type Public Plant/Facility Size (sq. ft.) 25,000.00 Owns/Rents Owns Foreign Trade Imports / Exports Accountant Ernst & Young LLP Total Employees 2,200,000 1-Year Employee Growth 4.76% Employees At This Location 11,700 Year of Founding or Change in Control 1945 Primary Industry 1531:Warehouse Clubs & Superstores Primary SIC Code 53310000:Variety stores Primary NAICS Code 452910:Warehouse Clubs and Supercenters Tradestyle Walmart Latitude/Longitude 36.36435 / -94.21665
Key Financials Fiscal Year-End January Sales ($ M) $446,950.00M 1-Year Sales Growth 5.95% Net Income $15,699.00M 1-Year Net Income Growth (4.21%) Total Assets $193,406.00M Market Value $230,821.42M
Prescreen Score Low Risk
Company Rankings 2 in FORTUNE 500 (May 2012) S&P 500 (December 31, 2012) Dow Jones Industrials Dow Jones Global Titans 11 in FT Global 500 (July 2012) 2 in FORTUNE 1000 (May 2012)
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Key People
Name Title
Mr. S. Robson (Rob) Walton Chairman
Mr. Michael T. (Mike) Duke President, CEO, and Director
Mr. Charles M. Holley Jr. EVP and CFO
Ms. Karenann K. Terrell Chief Information Officer
Ms. Linda P. Hefner EVP and Chief Merchandising Officer, Sam's Club
Mr. Thomas A. (Tom) Mars EVP and Chief Administrative Officer, Walmart U.S.
Mr. Stephen F. Quinn EVP and Chief Marketing Officer, Walmart U.S.
Mr. Jack L. Sinclair EVP Food, Walmart U.S.
Mr. James A. (Andy) Barron EVP Softlines, Walmart U.S.
Mr. Michael J. Bender EVP; President, Walmart West, Walmart U.S.
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Company Description
Geographic Reach In the 20 years since the Arkansas-based retailer entered Mexico (its first international market), Wal-Mart Stores has become an international retail powerhouse with operations in 26 countries. Of its 10,000-plus stores, more than half are located outside of the US. Indeed, Walmart International is the company's growth engine, accounting for more than 25% of sales. Major foreign markets include Mexico, the UK, Brazil, and Japan. Operations Wal-Mart's general merchandise and food retailing operations come in multiple formats, the largest being its 3,000-plus Supercenters. The retailer also operates a dwindling number of discount stores (many of which are being enlarged to become Supercenters) and Sam's Club warehouse stores. Smaller formats include Neighborhood Markets in the US and supermarkets and bodegas in Mexico. The International division operates a diverse portfolio with some 70 banners, representing three major categories: retail, wholesale, and other (which includes restaurants in Chile, Japan, and Mexico). The retail giant's online incarnation, Walmart.com (launched in 2000), offers more than 1,000,000 products. The e- tailer is expanding by offering merchandise from other retailers at its new virtual mall called Walmart Marketplace. Launched in August 2009, Walmart Marketplace offers apparel, baby, home, and sporting goods items from other sellers in return for a share of the revenue. In Demonstrating its commitment to e-commerce and social media, Wal-Mart acquired Kosmix, a social media technology provider, in 2011. Kosmix developed a platform that enables users to filter and organize content into social networks. As part of the transaction, Kosmix became @WalmartLabs, and founders Venky Harinarayan and Anand Rajaraman stayed on to lead the business. Also, in 2012 Walmart Global eCommerce agreed to increase its investment in Yihaodian, one of China's leading business- to-consumer e-commerce companies, to 51%. Sales and Marketing Wal-Mart Stores spent $2.3 billion on advertising in fiscal 2012 (ends January), down from $2.5 billion the prior year. Its advertising consists primarily of print, television, and online ads. Financial Analysis In fiscal 2012 (ends January) the company's net sales increased by nearly 6% vs. the prior year, driven by a 15% increase from the international division, a 9% jump in sales for Sam's Club, and a 1.5% gain in sales for Walmart US. Same-store sales at Wal-Mart stores in the US were essentially flat (up 0.3%) in fiscal 2012, after posting negative comparisons in the two previous years. Strategy Among the many measures the retailer has taken to get its groove back at home (including a sunny new logo), was a restructuring of its US organization (including top executive changes), the formation of a new division to oversee global e-commerce (called Walmart Global eCommerce), and a new global sourcing partnership with Hong Kong- based Li & Fung. Under the terms of the deal, Li & Fung -- a provider of supply chain services -- will form a new company to manage the Wal-Mart account and will act as the company's buying agent. The reorganization in the US entails the formation of three geographic business units: Walmart West, Walmart South, and Walmart North, in an attempt to more efficiently manage its domestic stores. While the retail operation was carved into three geographic slices, the logistics, real estate, and store operations functions were consolidated under one leadership team. With US suburbs saturated with Wal-Mart stores, the retailer has tried -- mostly unsuccessfully -- to gain access to urban markets. In 2011 Wal-Mart scored a significant breakthrough in its plan to build stores in US cities when it teamed up with Michelle Obama to launch its five-year plan to provide its customers with healthier, more affordable foods. Wal-Mart will reformulate its Great Value private label line of foods to reduce sodium, fats, and added sugars (and encourage its major suppliers to follow suit). Concurrently, with the first lady's support, it announced a commitment to building stores in underserved communities (aka "food deserts"). Given the breakneck pace of its international expansion over the past two decades and the growing importance of the international business to Wal-Mart's overall financial health, the fact that its Mexican subsidiary, Wal-Mart de México, is the subject of a bribery scandal is a serious blow to the company and its leadership. Mexico is Wal-Mart's largest foreign market and home to more than 2,000 of its supercenters, Sam's Clubs warehouse stores, and numerous other retail formats. Farther south, Wal-Mart is growing quickly in numerous other countries in Latin America, including Chile and Brazil, where it operates 316 and 512 stores, respectively. One of the world's fast- growing emerging markets, Brazil is key to Wal-Mart's expansion in the region. Asia is another hot growth market for Wal-Mart. Through joint ventures in China the company operates about 370 stores. To support its growth there, Wal-Mart is building its Asian headquarters in the coastal city of Shenzhen, the site of its first supercenter and Sam's Club in China. And in a move that demonstrates how important the vast Chinese market is to the world's largest retailer, staunchly anti-union Wal-Mart has announced that it will work with officials there to establish labor unions in all Wal-Mart stores in China. Wal-Mart is poised to enter India's huge but fragmented market via a joint venture with the Bharti Enterprises Ltd. (Regulations in India prohibit retailers