...Walmart's latest full year fiscal 2023 (year ended Jan. 31, 2023) earnings came in slightly better than we had expected but guidance for the coming year speaks to a challenged U.S. consumer. The company's total revenue topped $611 billion, ahead of what we were anticipating, and it noted December was the largest sales month in Walmart U.S. history. However, operating income by company calculations came in at $20.4 billion versus the $22 billion on a reported basis we were expecting. Operating margin was 3.3%, 50 basis points below our expectations for the year and down 120 basis points from a year ago. Overall, the results painted a view that the average American fared reasonably well despite the inflationary challenges of the past year, but cost pressures and discounting impacted even Walmart, which will face a more difficult 12 months amid U.S. recessionary trends. Importantly, Walmart is benefiting from trade down consumers especially to its grocery business driving market share gains...
