Walmart Inc. · NASDAQ:WMT

Walmart — Q4 FY2023 Earnings Presentation

25 slides from Walmart's earnings presentation, Feb 21, 2023

  1. Slide 1: Financial presentation to accompany management commentary Q4 FY2023

    Financial presentation to accompany management commentary Q4 FY2023

  2. Slide 2: Safe harbor and non-GAAP measures

    Safe harbor and non-GAAP measures This presentation contains statements or may include or may incorporate by reference Walmart management’s guidance regarding adjusted earnings per share, consolidated net sales, consolidated operating and consolidated adjusted operating income, consolidated operatin

  3. Slide 3: Fiscal 2024 Q1 and full year guidance

    Fiscal 2024 Q1 and full year guidance The following guidance reflects the company’s expectations for the first quarter and fiscal year 2024 and is provided on a non-GAAP basis as the Company cannot predict certain elements which are included in reported GAAP results, including the impact of foreign

  4. Slide 4: Walmart Inc. - Q4 FY23

    Walmart Inc. - Q4 FY23 Dollars in billions, except per share. Change is calculated as the change versus the prior year comparable period Total revenue Membership and Other Income Operating income Effective tax rate $164.0 $1.3 $5.6 34.7% +7.3% -3.0% -5.5% Total revenue, constant currency1 Operating

  5. Slide 5: Walmart Inc. - FY23

    Walmart Inc. - FY23 Dollars in billions, except per share. Change is calculated as the change versus the prior year comparable period Total revenue Membership and Other Income Operating income $611.3 $5.4 Effective tax rate $20.4 +6.7% +8.3% -21.3% 33.6% 1 Total revenue, constant currency $615.1 Gro

  6. Slide 6: Walmart Inc. - Q4 FY23

    Walmart Inc. - Q4 FY23 Dollars in billions. Change is calculated as the change versus the prior year comparable period Receivables, net Debt to capitalization1 $7.9 36.8% -4.2% +280 bps Inventories Return on assets2 Continuing to strengthen jobs and invest in people $56.6 4.6% +0.1% -100 bps Account

  7. Slide 7: Walmart Inc. - FY23

    Walmart Inc. - FY23 Dollars in billions. Dollar changes may not recalculate due to rounding. Change is calculated as the change versus the prior year comparable period Operating cash flow Dividends $29.1 $6.1 +$4.9 $1.5 in 4Q23 Capital expenditures Share repurchases2 With new associate-to-driver pro

  8. Slide 8: Walmart U.S. - Q4 FY23

    Walmart U.S. - Q4 FY23 Dollars in billions. Change is calculated as the change versus the prior year comparable period Net Sales Comparable sales1 Inventory $113.7 8.3% Total: -2.6% +8.0% Comparable transactions • Reflects continued strong execution of 1.8% inventory rebalancing from early in year e

  9. Slide 9: Walmart U.S. - Q4 FY23

    Walmart U.S. - Q4 FY23 Dollars in billions. Change is calculated as the change versus the prior year comparable period Gross profit rate Operating expense rate Operating income -112 bps -100 bps $5.4 +3.8% • Increased general merchandise • Expense leverage reflects higher sales • Declines in gross p

  10. Slide 10: Walmart U.S. - quarterly merchandise highlights

    Walmart U.S. - quarterly merchandise highlights Category Comp sales Details • Strength in food sales (+high-teens) reflected continued market share gains (according to Nielsen) and ongoing growth in private brand penetration; elevated food inflation was similar to Q3 levels (+mid-teens) Grocery + mi

  11. Slide 11: Walmart International - Q4 FY23

    Walmart International - Q4 FY23 Dollars in billions. Dollar changes may not recalculate due to rounding. Change is calculated as the change versus the prior year comparable period Net sales Gross profit rate Operating income Inventory $27.6 +52 bps $0.3 $11.2 +2.1% -65.3% +3.4% 1 • Benefited from ti

  12. Slide 12: Walmart International

    Walmart International - Q4 FY23 Results are presented on a constant currency basis. Net sales and comp sales are presented on a nominal, calendar basis and include eCommerce results. Change is calculated as the change versus the prior year comparable period. Walmex1 China Canada Net sales growth +11

  13. Slide 13: Walmart International

    Walmart International - Q4 FY23 Results are presented on a constant currency basis. Change is calculated as the change versus the prior year comparable period Walmex1 China Canada Gross profit rate Relatively Flat Decrease Decrease x • Mix effect from continued growth in • Mix effect from continued

  14. Slide 14: Sam's Club - Q4 FY23

    Sam's Club - Q4 FY23 Dollars in billions. Change is calculated as the change versus the prior year comparable period With Fuel Net sales eCommerce net sales growth Gross profit rate Operating income $21.4 +21% -93 bps $0.5 +11.3% • Strong contribution from both curbside • Elevated markdowns and lapp

  15. Slide 15: Sam's Club - Q4 FY23

    Sam's Club - Q4 FY23 Dollars in billions. Change is calculated as the change versus the prior year comparable period Without Fuel Net sales Comparable transactions Gross profit rate Operating income $18.8 +6.7% -113 bps $0.4 +11.6% • On a two-year stack, comp transactions (11.6)% increased 13.7% Com

  16. Slide 16: Sam's Club - quarterly financial highlights

    Sam's Club - quarterly financial highlights Category Comp sales Details Fresh / Freezer / Cooler + low-teens • Cooler, deli, fresh meat, and prepared foods performed well Grocery and beverage + high-teens • Dry grocery, drinks, and snacks showed strength Consumables + mid-teens • Paper goods, tablet

  17. Slide 17: Non-GAAP measures - ROI

    Non-GAAP measures - ROI We include Return on Assets ("ROA"), which is calculated in accordance with U.S. generally accepted accounting principles ("GAAP") as well as Return on Investment ("ROI") as measures to assess returns on assets. Management believes ROI is a meaningful measure to share with in

  18. Slide 18: Non-GAAP measures - ROI (cont.)

    Non-GAAP measures - ROI (cont.) The calculation of ROA and ROI, along with a reconciliation of ROI to the calculation of ROA, is as follows: CALCULATION OF RETURN ON ASSETS CALCULATION OF RETURN ON INVESTMENT Trailing Twelve Months Trailing Twelve Months Ended January 31, Ended January 31, (Dollars

  19. Slide 19: Non-GAAP measures - free cash flow

    Non-GAAP measures - free cash flow We define free cash flow as net cash provided by operating activities in a period minus payments for property and equipment made in that period. Net cash provided by operating activities was $29.1 billion for the fiscal year ended January 31, 2023, which represents

  20. Slide 20: Non-GAAP measures - constant currency

    Non-GAAP measures - constant currency In discussing our operating results, the term currency exchange rates refers to the currency exchange rates we use to convert the operating results for countries where the functional currency is not the U.S. dollar into U.S. dollars. We calculate the effect of c

  21. Slide 21: Non-GAAP measures - adjusted operating income

    Non-GAAP measures - adjusted operating income Adjusted operating income is considered a non-GAAP financial measure under the SEC’s rules because it excludes certain charges included in operating income calculated in accordance with GAAP. Management believes that adjusted operating income is a meanin

  22. Slide 22: Non-GAAP measures - adjusted EPS

    Non-GAAP measures - adjusted EPS Adjusted diluted earnings per share attributable to Walmart (Adjusted EPS) is considered a non-GAAP financial measure under the SEC’s rules because it excludes certain amounts included in the diluted earnings per share attributable to Walmart calculated in accordance

  23. Slide 23: Non-GAAP measures - adjusted EPS (cont.)

    Non-GAAP measures - adjusted EPS (cont.) Percent Percent Three Months Ended January 31, 2023 Change1 Fiscal Year Ended January 31, 20235 Change1 Diluted earnings per share: Reported EPS $ 2.32 81.3% $ 4.27 -12.3% Pre-Tax Tax NCI Net Pre-Tax Tax NCI Net Adjustments: Impact Impact2,3 Impact4 Impact Im

  24. Slide 24: Non-GAAP measures - adjusted EPS (cont.)

    Non-GAAP measures - adjusted EPS (cont.) As previously disclosed in our fiscal year ended January 31, 2022 press release, we have calculated Adjusted EPS for the three months and fiscal year ended January 31, 2022 by adjusting EPS for the following: (1) unrealized and realized gains and losses on th

  25. Slide 25: Additional resources at stock.walmart.com

    Additional resources at stock.walmart.com • Unit counts & square footage • Comparable store sales, including and excluding fuel • Terminology 25

Walmart — Q4 FY2023 Earnings Presentation on 6ix