Slide 1: Financial presentation to accompany management transcript Q3 FY20
Financial presentation to accompany management transcript Q3 FY20
Slide 2: Safe harbor and non-GAAP measures
Safe harbor and non-GAAP measures This presentation contains statements as to Walmart management's guidance regarding earnings per share, adjusted earnings per share and Walmart's effective tax rate for the fiscal year ending January 31, 2020. Walmart believes such statements are "forward-looking st
Slide 3: Fiscal Year 2020 Guidance
Fiscal Year 2020 Guidance The following guidance reflects the company’s expectations for fiscal year 2020. Assumptions in the guidance include that economic conditions, currency rates and the tax and regulatory landscape remain generally consistent. The company continues to assess the ongoing civil
Slide 4: Walmart Inc.
Walmart Inc. (Amounts in millions, except per share data) Q3 $ Δ1 % Δ1 YTD $ Δ1 % Δ1 Total revenue $ 127,991 $ 3,097 2.5 % $ 382,293 $ 6,681 1.8 % Total revenue, constant currency2 129,008 4,114 3.3 % 386,474 10,862 2.9 % Net sales 126,981 3,084 2.5 % 379,318 6,732 1.8 % Net sales, constant currency
Slide 5: Walmart Inc.
Walmart Inc. Q3 bps Δ1 YTD bps Δ1 Gross profit rate 24.5% (36) bps 24.4% (36) bps Operating expenses as a percentage of net sales2 21.6% (6) bps 21.1% (15) bps Effective tax rate3 24.1% (540) bps 24.5% (1,745) bps Debt to total capitalization4 NP NP 44.9% (100) bps Return on assets5 NP NP 6.3% 370 b
Slide 6: Walmart Inc.
Walmart Inc. (Amounts in millions) Q3 $ Δ1 % Δ1 Receivables, net $ 5,612 (173) (3.0)% Inventories 51,546 1,166 2.3% Accounts payable 49,750 21 0.0% 1 Change versus prior year comparable period. 6
Slide 7: Walmart Inc.
Walmart Inc. (Amounts in millions) YTD $ Δ1 Operating cash flow $ 14,539 $ (2,769) Capital expenditures 7,765 751 Free cash flow2 $ 6,774 (3,520) (Amounts in millions) Q3 % Δ1 YTD % Δ1 Dividends $ 1,509 (0.5)% $ 4,545 (1.1)% Share repurchases3 1,122 (51.6)% 4,829 16.1% Total $ 2,631 (31.4)% $ 9,374
Slide 8: Walmart U.S.
Walmart U.S. (Amounts in millions) Q3 Δ1 YTD Δ1 Net sales $83,189 3.2% $248,733 3.1% Comparable sales2,3 3.2% NM 3.1% NM • Comp transactions4 1.3% NM NP NP • Comp ticket4 1.9% NM NP NP eCommerce impact3 ~170 bps NM NP NP Gross profit rate Decrease (4) bps Decrease (7) bps Operating expense rate Decr
Slide 9: Walmart U.S. - quarterly financial highlights
Walmart U.S. - quarterly financial highlights Sales • Comp sales1 increased 3.2%, with comp ticket higher by 1.9% and comp transactions grew 1.3%. eCommerce sales grew 41% and contributed approximately 170 basis points to segment comp sales growth. Online grocery was a meaningful contributor to eCom
Slide 10: Walmart U.S. - quarterly merchandise highlights
Walmart U.S. - quarterly merchandise highlights Category Comp Comments Food and consumables sales results were strong with snacks & beverages, fresh foods, and pets among the strongest categories. Increased penetration of private brands continues to drive strong sales Grocery1 + mid single-digit alo
Slide 11: Walmart International
Walmart International Constant Constant (Amounts in millions) Reported currency1 Reported currency1 Q3 Δ2 Q3 Δ2 1 YTD Δ2 YTD Δ2 Net sales $29,167 1.3% $30,177 4.8% $87,081 (1.6)% $91,229 3.1% Gross profit rate Decrease (150) bps NP NP Decrease (159) bps NP NP Operating expense rate Increase 49 bps N
Slide 12: Walmart International - quarterly financial highlights
Walmart International - quarterly financial highlights Sales • Positive comp sales in seven of 10 markets, including the major markets of Mexico, Canada and China. • The inclusion of Flipkart for the full third-quarter in the current fiscal year versus a partial third-quarter in the prior fiscal yea
Slide 13: Walmart International - key market quarterly results
Walmart International - key market quarterly results Comp3 Gross 1,2 Net Operating Country profit Sales Transactions Ticket sales3 3 income3 rate Walmex4 3.1% 0.1% 3.0% 4.7% Increase Increase China 3.7% 1.1% 2.6% 6.3% Decrease Increase Canada 1.9% (0.5)% 2.4% 0.9% Decrease Decrease United Kingdom5 (
Slide 14: Walmart International - key market highlights
Walmart International - key market highlights Walmex • Net sales increased 4.7% and comp sales increased 3.1%, led by strength in Mexico. ◦ In Mexico, comp sales increased 3.8% or 10.1% on a two-year stacked basis. ◦ Opened 36 new stores across Mexico and Central America. • Comp sales growth continu
Slide 15: Walmart International - key market highlights
Walmart International - key market highlights Canada • Net sales increased 0.9% and comp sales increased 1.9%. ◦ Comp sales growth benefited from strength in grocery and fresh, offset by softer sales in general merchandise and apparel. ◦ The company finalized the sale of Walmart Canada Bank on April
Slide 16: Sam's Club
Sam's Club With fuel Without fuel1 With fuel Without fuel1 (Amounts in millions) Q3 Δ2 Q3 Δ2 YTD Δ2 YTD Δ2 Net sales $14,625 0.7% $13,075 0.6% $43,504 1.3% $38,979 0.8% Comparable sales3 0.8% NM 0.6% NM 1.2% NM 0.7% NM • Comp transactions NP NP 5.7% NM NP NP NP NP • Comp ticket NP NP (5.1)% NM NP NP
Slide 17: Sam's Club - quarterly financial highlights
Sam's Club - quarterly financial highlights Sales 1 • Comp sales increased 0.6% and comp transactions grew 5.7%. Tobacco negatively affected comp sales by approximately 350 basis points. • eCommerce sales increased approximately 32%. Gross profit • Gross profit rate decreased 30 basis points and 45
Slide 18: Sam's Club - quarterly category highlights
Sam's Club - quarterly category highlights Category Comp Comments Fresh / Freezer / Cooler + mid single-digit Prepared foods, fresh meat and frozen performed well. Grocery and beverage + mid single-digit Snacks, soda, juice and chips performed well. Consumables + mid single-digit Broad-based strengt
Slide 19: 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
Slide 20: Non-GAAP measures - ROI cont.
Non-GAAP measures - ROI cont. Prior to adoption of ASU 2016-02, we defined ROI as adjusted operating income (operating income plus interest income, depreciation and amortization, and rent expense) for the trailing 12 months divided by average invested capital during that period. We considered averag
Slide 21: 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 October Ended October (Dollars in million
Slide 22: 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. We had net cash provided by operating activities of $14.5 billion for the nine months ended October 31, 2019, which decr
Slide 23: 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 or for countries experiencing
Slide 24: 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 not excluded in the diluted earnings per share attributable to Walmart calculated in accord
Slide 25: Non-GAAP measures - adjusted EPS
Non-GAAP measures - adjusted EPS As previously disclosed in our third quarter ended October 31, 2018 press release, we have calculated Adjusted EPS for the three months ended October 31, 2018 by adjusting EPS for the following: (1) the loss on sale of the majority stake in Walmart Brazil, (2) an adj
Slide 26: Additional resources at stock.walmart.com
Additional resources at stock.walmart.com • Unit counts & square footage • Comparable store sales, including and excluding fuel • Revised fiscal 2019 quarterly comp transactions • Terminology 26