"Today, the vast majority of our overall profits are attributable to in-store brick-and-mortar in the U.S.," John David Rainey, Walmart's CFO, said at a Raymond James Conference.
Services, such as fees Walmart collects from third-party sellers on Walmart.com, the cut it gets if Walmart fulfills those orders to shoppers and the dollars that advertisers spend through Walmart's growing retail media business, are the higher-margin, faster-growing parts of Walmart's business, Rainey said.
Most recently, Amazon disclosed $11.6 billion in revenue from its ad business in the fourth quarter.
The business has grown rapidly since then, with sales rising nearly 30% to $2.7 billion in its fiscal year ended Jan. 31.
In the fourth quarter, ad sales rose 41% year-over-year, the company said last month.