Walmart Inc. · NASDAQ:WMT
Walmart — Q2 FY16 Earnings Presentation
13 slides from Walmart's earnings presentation, Aug 18, 2015
Slide 1: Q2 FY16 Financial presentation to accompany management transcript
Q2 FY16 Financial presentation to accompany management transcript August 18, 2015
Slide 2: Wal-Mart Stores, Inc. consolidated results
Wal-Mart Stores, Inc. (Amounts in millions, except share data) Q2 $ Δ1 % Δ1 YTD $ Δ1 % Δ1 Total revenue $120,229 $104 0.1% $235,055 -$30 0.0% Total revenue, constant $124,451 $4,326 3.6% $242,557 $7,472 3.2% currency2 Net sales $119,330 -$6 0.0% $233,332 -$171 -0.1% Net sales, constant $123,503 $4,1
Slide 3: Wal-Mart Stores, Inc. margins, tax rate and ROI
Wal-Mart Stores, Inc. Q2 bps Δ1 YTD bps Δ1 Gross profit rate 24.5% -4 bps 24.3% 2 bps Operating expenses as a percentage 20.2% 61 bps 20.0% 59 bps of net sales Effective tax rate 34.2% 15 bps 33.4% -68 bps Debt to total capitalization2 NP NP 38.3% -270 bps Return on investment3,4 NP NP 16.2% -50 bps
Slide 4: Wal-Mart Stores, Inc. receivables, inventories, payables
Wal-Mart Stores, Inc. (Amounts in millions) Q2 $ Δ1 % Δ1 Receivables, net $5,275 -$871 -14.2% Inventories $45,007 -$444 -1.0% Accounts payable $37,225 $397 1.1% 1 4 Change versus prior year comparable period
Slide 5: Cash flow, dividends and share repurchases
Wal-Mart Stores, Inc. (Amounts in millions) YTD $ Δ1 Operating cash flow $10,102 -$1,798 Capital expenditures $5,044 -$69 Free cash flow2 $5,058 -$1,729 (Amounts in millions) Q2 % Δ1 YTD % Δ1 Dividends $1,578 2.0% $3,157 2.0% Share repurchases3 $1,003 226.7% $1,283 37.5% Total $2,581 39.2% $4,440 10
Slide 6: Walmart U.S.
Walmart U.S. (Amounts in millions) Q2 Δ1 YTD Δ1 Net sales $73,959 4.8% $144,204 4.2% Comparable store 1.5% 150 bps 1.3% 130 bps sales2 • Comp traffic 1.3% 240 bps NP NP • Comp ticket 0.2% -90 bps NP NP E-commerce impact3 ~0.2% NP NP NP Neighborhood Market4 ~7.3% NP NP NP Gross profit rate Decrease -
Slide 7: Walmart U.S. category comps
Walmart U.S. Category Comp Grocery1 Flat General merchandise2 + low single-digit Health & wellness + mid single-digit Apparel + mid single-digit Home + mid single-digit 1 Includes food and consumables 2 Includes entertainment, toys, hardlines and seasonal 7
Slide 8: Walmart International
Walmart International (Amounts in Constant Constant millions) Reported currency1 Reported currency1 1 Q2 Δ2 Q2 Δ2 YTD Δ2 YTD Δ2 Net sales $30,637 -9.6% $34,810 2.8% $60,915 -8.1% $68,344 3.1% Gross profit rate Increase 33 bps NP NP Increase 17 bps NP NP Operating $1,277 -14.2% $1,466 -1.5% $2,347 -1
Slide 9: Walmart International country results
Walmart International 1,2 Comp3 Net Gross Country profit sales3 Sales Traffic Ticket rate3 United Kingdom4 -5.2% -3.3% -1.9% -4.1% Increase Walmex5 5.1% -0.2% 5.3% 7.2% Increase Canada 3.9% 1.0% 2.9% 5.4% Decrease Brazil -1.0% -1.4% 0.4% -0.9% Decrease China -1.4% -7.5% 6.1% 1.2% Increase 1 Results
Slide 10: Sam's Club
Sam's Club (Amounts in Without fuel1 With fuel Without fuel1 With fuel millions) Q2 Δ2 Q2 Δ 2 YTD Δ 2 YTD Δ2 Net sales $13,395 2.8% $14,734 -0.9% $25,758 2.0% $28,213 -1.9% Comparable club 1.3% 130 bps -2.3% -280 bps 0.9% 120 bps -3.0% -280 bps sales3 • Comp traffic 0.5% 20 bps NP NP NP NP NP NP • C
Slide 11: Sam's Club category comps
Sam's Club Category Comp Fresh / Freezer / Cooler - low single-digit Grocery and beverage + low single-digit Consumables + low single-digit Home and apparel + low single-digit Technology, office and entertainment - mid single-digit Health and wellness + mid single-digit 11
Slide 12: Guidance
Guidance Total Walmart Sam's company FY16 Q3 EPS: U.S. comps 13-week period1: Club comps 13-week period1: • $0.93 - $1.05 • 1.0% - 2.0% • Flat to +2.0% Full Year EPS: • $4.40 - $4.70 1 13-week period from August 1, 2015 through October 30, 2015, compared to 13-week period ended October 31, 2014 12
Slide 13: Additional resources at stock.walmart.com
Additional resources at stock.walmart.com • Reconciliations for our non-GAAP financial measures (ROI, free cash flow, constant currency and Sam’s Club comparable measures) • Unit counts & square footage • Comparable store sales • Terminology • FY 16 earnings dates 13