72% growth in 2024. This is not the performance of Microsoft,Amazon or Meta, but rather that of Walmart, which outperformed 6 of the Magnificent 7 over the past year. Only Nvidia was able to "hold its own" with 171% gains. A surprising performance for the world's leading retailer, and good news for Alice Walton, daughter of the founder and now the richest woman in the world, with an estimated $99.9 billion net worth, according to Forbes.

Walmart is the world's largest retailer, with sales of almost $650 billion in 2024. The group has some 10,000 stores and 2,100,000 employees worldwide. In other words, organizing annual seminars is a real headache.

Walmart is the world's largest supermarket chain. A business that, on the face of it, is well on the way to maturity. Despite this status, the group manages to find new sources of growth, thanks to its omnichannel approach. Same-store sales rose by just 4.4% in the first 9 months of 2024. But e-commerce activity is growing by more than 20% over the same period. And consumers are willing to pay more for express delivery. 30% of customers have activated the option in the last two quarters.

Walmart is also diversifying its revenues through activities with higher margins than traditional business. First, membership programs for its warehouse club, Sam's Club, a direct competitor of Costco. This business is enjoying double-digit growth. Secondly, advertising on its marketplace, which grew by 28% in the last quarter.

Walmart and the rest of the world

Walmart offers its customers a global experience. This is helping it to gain further market share. Particularly in the more affluent customer segment. In the last quarter, the CFO reported that 75% of market share gains came from consumers with incomes of over $100,000 a year.

Low-income consumers also prefer Walmart. The difficulties of discount chains Dollar Tree and Dollar General bear witness to this. Two groups whose shares lost over 40% in 2024. Target, more exposed to consumer discretionary than Walmart, is also in trouble. The company fell by 20% after its third-quarter results. All these groups are bearing the brunt of inflation. Consumers are refocusing on food consumption and the search for value for money. The Walmart steamroller continues to scatter the competition like a jigsaw puzzle.

Connected to the American consumer

Another strong point is geographic exposure: around 80% of sales are generated in the United States. This is the area where the consumer is most dynamic. But Walmart is also expanding abroad, particularly in India, Mexico and China. International sales rose by 8% in the last quarter.

The company's strong domestic exposure may also represent a risk. Particularly if the Trump administration implements tariffs. Indeed, tariff hikes would translate into higher prices for consumers. But Walmart is already working to diversify its supply chains, and two-thirds of its products are made or assembled in the USA, reducing the impact of potential tariffs.

Excellence at all costs?

Walmart enjoys solid number-one status and all that goes with it: price negotiating advantage, market benchmark, excellent supply chain, well-developed loyalty program. And an excellent track record. Since 2014, revenues have climbed 33% with stable margins above the sector average. Compared to its peers, Walmart also boasts better sales growth, lower debt levels and a better dividend payout ratio.

In the coming years, Walmart plans to open 150 stores. Same-store sales should continue to grow in the low to mid-single digits, while a better product mix and a more efficient supply chain should improve margins. A much better outlook than its competitors, particularly in terms of margins. This makes Walmart a must in the eyes of investors. It is the undisputed leader in a sector that is itself defensive. A kind of safe-haven on the US stock market.

But excellence comes at a price. In 2024, Walmart 's share price rose by 72%. At the same time, operating income grew by just 10%, and is expected to grow by 9% in 2025. There has therefore been a significant expansion in valuation multiples. We have gone from 29 times earnings (P/E forward) at the start of 2024 to 38 times now. In the same sector, only Costco, leader in warehouse clubs and therefore a direct competitor to Sam's Club, has a higher valuation, at 50 times earnings. Here again, Walmart is in the league of the magnificent 7. Or BATMMAAN, as they say now. But good luck finding a new acronym.