Walmart 2001 Annual Report Download - page 4

Dear Fellow Shareholder:
It is truly an honor to serve
as President and CEO of
Wal-Mart Stores, Inc., and
I appreciate the opportunity
to share with you some
thoughts from fiscal 2001 and
our outlook for the future.
What a year of milestones it
was! But before we get into
the details, I’d like to touch
on a few highlights from
the year.
Net sales in fiscal 2001
increased almost 16 percent
to more than $191 billion,
representing a growth in
revenue of more than
$26 billion. In addition, net
income reached $2 billion
for the fourth quarter and almost
$6.3 billion for the year, making it our
first “two-billion-dollar-income
quarter” and our first
“six-billion-dollar-income year.”
FORTUNE magazine named
Wal-Mart the third “most admired”
company in America and one of the
100 best companies to work for in
America. Our Company also ranked
fifth on FORTUNE’s Global Most
Admired Companies list based on
characteristics such as leadership,
teamwork and the way we treat our
people. In addition, Americans
named Wal-Mart the company they
think of first in supporting local
causes and issues, according to
Cone, Inc., a national research firm.
Whether it’s our domestic or
international Associates in the stores,
clubs and distribution centers, or
those in the home office, our people
truly deserve the credit for all these
accomplishments. Let’s look a little
closer at what our Associates were
able to achieve this year.
Fiscal 2001 was clearly one of the
strongest years in recent memory
for the SAM’S CLUB division. We
saw growth in both sales and
earnings. Moreover, earnings growth
outpaced sales growth for the year.
Membership renewals reached
record levels, demonstrating strong
loyalty and Member acceptance, and
illustrating that a SAM’S membership
is the best value in the warehouse
club business. In fact, one in three
households in America now has a
SAM’S CLUB membership. SAM’S
has made great progress over the
past two years in upgrading our
facilities and adding
services, including
pharmacy, optical, 1-Hour
Photo and fuel, to offer the
highest quality shopping
experience to our Members.
In short, our Members
continue to respond
favorably to SAM’S
unique, high-quality
merchandise at
exceptional values.
The International Division
had an excellent year,
growing sales by 41 percent
and achieving more than
$32 billion in revenues. As
we travel internationally, it’s
exciting not only to see our
stores and clubs operating
at such high standards, but
also to see the Wal-Mart culture
being embraced throughout the
world. This just shows that treating
people with respect and raising their
standard of living through Every Day
Low Prices knows no boundaries.
I’ll highlight the exceptional
performances by our three largest
international operations: Canada,
Mexico and the United Kingdom.
Fiscal 2001 was a great year for our
Canadian business. Sales and
operating profit increased for the
year by more than 14 percent,
continuing the customer-focused
retailing traditions established in the
U.S. almost 40 years ago.
Mexico also had an outstanding
year, exceeding both its sales and
profit goals. Our Customers there
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A LOOK AT 2001
AND BEYOND
A LOOK AT 2001
AND BEYOND