Slide 1: Financial presentation to accompany management transcript
Financial presentation to accompany management transcript Q2 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, consolidated net sales growth, Walmart U.S. eCommerce net sales growth, Walmart International net sales growth, consolidated operatin
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 in our largest markets remain generally consistent. Additionally, the guidance
Slide 4: Walmart Inc.
Walmart Inc. (Amounts in millions, except per share data) Q2 $ Δ1 % Δ1 YTD $ Δ1 % Δ1 Total revenue $ 130,377 $ 2,349 1.8 % $ 254,302 $ 3,584 1.4 % Total revenue, constant currency2 131,688 3,660 2.9 % 257,466 6,748 2.7 % Net sales 129,388 2,329 1.8 % 252,337 3,648 1.5 % Net sales, constant currency2
Slide 5: Walmart Inc.
Walmart Inc. Q2 bps Δ1 YTD bps Δ1 Gross profit rate 24.3% -46 bps 24.3% -37 bps Operating expenses as a percentage of net sales 20.8% -25 bps 20.9% -20 bps Effective tax rate2 25.1% NM 24.7% NM Debt to total capitalization3 NP NP 44.7% 170 bps Return on assets4 NP NP 6.0% 310 bps Return on investmen
Slide 6: Walmart Inc.
Walmart Inc. (Amounts in millions) Q2 $ Δ1 % Δ1 Receivables, net $ 5,382 $ 380 7.6% Inventories 44,134 2,149 5.1% Accounts payable 45,871 2,743 6.4% 1 Change versus prior year comparable period. 6
Slide 7: Walmart Inc.
Walmart Inc. (Amounts in millions) YTD $ Δ1 Operating cash flow $ 11,185 $ 90 Capital expenditures 4,871 589 Free cash flow2 $ 6,314 (499) (Amounts in millions) Q2 % Δ1 YTD % Δ1 Dividends $ 1,516 (1.2)% $ 3,036 -1.0% Share repurchases3 1,572 20.5% 3,707 101.0% Total $ 3,088 8.8% $ 6,743 37.3% 1 Chan
Slide 8: Walmart U.S.
Walmart U.S. (Amounts in millions) Q2 Δ1 YTD Δ1 Net sales $85,200 2.9% $165,544 3.1% Comparable sales2,3 2.8% -170 bps 3.1% -20 bps • Comp transactions4 0.6% -210 bps NP NP • Comp ticket4 2.2% 40 bps NP NP eCommerce impact3 ~140 bps ~40 bps NP NP Gross profit rate Decrease -22 bps Decrease -9 bps Op
Slide 9: Walmart U.S. - quarterly financial highlights
Walmart U.S. - quarterly financial highlights Sales • Comp sales1 increased 2.8%, the 20th consecutive quarter of positive comps. Comp ticket increased 2.2% and comp transactions grew 0.6%. eCommerce sales grew 37% and contributed approximately 140 basis points to segment comp sales growth. Online g
Slide 10: Walmart U.S. - quarterly merchandise highlights
Walmart U.S. - quarterly merchandise highlights Category Comp Comments Momentum continued in food and consumables with the strongest two- year stacked comp in nearly 10 years. Snack & beverages, fresh foods, pets and paper goods were particularly strong. Customers are Grocery1 + mid single-digit res
Slide 11: Walmart International
Walmart International Constant Constant (Amounts in millions) Reported currency1 Reported currency1 Q2 Δ2 Q2 Δ2 YTD 1 Δ2 YTD Δ2 Net sales $29,139 (1.1)% $30,440 3.3% $57,914 (3.0)% $61,053 2.2% Gross profit rate Decrease (157) bps NP NP Decrease (164) bps NP NP Operating expense rate Decrease (36) b
Slide 12: Walmart International - quarterly financial highlights
Walmart International - quarterly financial highlights Sales • Positive comp sales in nine of 10 markets, including the four largest markets - Mexico, U.K., Canada and China. The later timing of Easter this year benefited comp sales in Mexico and resulted in positive comp sales in the U.K. • The dec
Slide 13: 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 4.8% 1.7% 3.1% 6.3% Decrease Increase China 3.0% 0.7% 2.3% 4.7% Decrease Increase Canada 1.2% (1.7)% 2.9% 0.4% Increase Decrease United Kingdom5 0
Slide 14: International - key market highlights
Walmart International - key market highlights Walmex • Net sales increased 6.3% and comp sales increased 4.8%, led by strength in Mexico. ◦ In Mexico, comp sales increased 5.5% or 12.0% on a two-year stacked basis. ◦ Opened 32 new stores across Mexico and Central America. • Comp sales growth continu
Slide 15: International - key market highlights
Walmart International - key market highlights Canada • Net sales increased 0.4% and comp sales increased 1.2%. ◦ 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) Q2 Δ2 Q2 Δ2 YTD Δ2 YTD Δ2 Net sales $15,049 1.8% $13,451 1.2% $28,879 1.6% $25,904 0.9% Comparable sales3 1.8% (590) bps 1.2% (380) bps 1.5% (500) bps 0.7% (370) bps • Comp transactions NP NP 5.0% (170) bps NP NP NP NP
Slide 17: Sam's Club - quarterly financial highlights
Sam's Club - quarterly financial highlights Sales 1 • Comp sales increased 1.2% and comp transactions grew 5.0%. Tobacco negatively affected comp sales by approximately 300 basis points. • eCommerce sales increased approximately 35%. Gross profit • Gross profit rate increased 11 basis points and 5 b
Slide 18: Sam's Club - quarterly category highlights
Sam's Club - quarterly category highlights Category Comp Comments Fresh / Freezer / Cooler + mid single-digit Produce and floral, deli and frozen performed well. Grocery and beverage + mid single-digit Snacks, soda, coffee, chips, and candy performed well. Experienced broad-based strength, including
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 July 31, Ended July 31, (Dollars in milli
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 $11.2 billion for the six months ended July 31, 2019, which was rela
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 second quarter ended July 31, 2018 press release, we have calculated Adjusted EPS for the three months ended July 31, 2018 by adjusting EPS for the following: (1) the loss on sale of the majority stake in Walmart Brazil, (2) an adjustme
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