Slide 1: Financial presentation to accompany management commentary FY24 Q3
Financial presentation to accompany management commentary FY24 Q3
Slide 2: Guidance
Guidance The following guidance reflects the Company’s Metric Fiscal Year 2024 expectations for fiscal year 2024 and is provided on a non-GAAP basis as the Company Consolidated net sales (cc) Increase approximately 5.0% to 5.5% cannot predict certain elements that are included in reported GAAP resul
Slide 3: Total revenues
Total revenues 1 Total revenues (cc) $159.4 billion, up +4.3% Amounts in billions, except as noted. Dollar changes may not recalculate due to rounding. $164.0 $161.6 $160.8 • Total revenues reached $160.8 billion with strength across all $152.8 $152.3 operating segments • Positively affected by $1.4
Slide 4: Gross profit rate
Gross profit rate Gross profit rate +32bps to 24.0% 24.0% 24.0% 23.7% • Gross profit rate positively 23.7% affected by a slight improvement for Walmart U.S. and timing of Flipkart’s The Big Billion Days event, which flipped from Q3 last year to Q4 this year 22.9% • Positive impact from a reduction i
Slide 5: Operating expenses as a percentage of net sales
Operating expenses as a percentage of net sales 1 Adjusted operating expenses as a percentage of net sales , +37bps to 21.0% Operating expenses as a percentage Adjusted operating expenses as a 1 of net sales percentage of net sales 22.8% • As a percentage of net sales, operating expenses leveraged o
Slide 6: Operating income
Operating income 1 Adjusted operating income of $6.2 billion, up 3.0% Amounts in billions, except as noted. Dollar changes may not recalculate due to rounding. 1 Operating income Adjusted operating income $7.3 $7.4 1 • Adjusted operating income up 3.0% $6.4 relative to 5.3% growth in net sales, $6.2
Slide 7: EPS
EPS 1 Adjusted EPS of $1.53, up 2.0% 1 EPS Adjusted EPS $2.92 1 $2.32 $1.84 • Adjusted EPS excludes the $1.71 $1.50 $1.53 effects, net of tax, of $1.36 from $1.47 net losses on equity and other investments $0.62 $0.17 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 $(0.66) Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3
Slide 8: Cash flow
Cash flow Amounts in billions, except as noted. Dollar changes may not recalculate due to rounding. 1 Operating cash flow Free cash flow $12.0 $28.8 • Operating cash flow increased primarily due to moderated levels $9.0 of inventory purchases and timing of certain payments, partially $18.2 $19.0 off
Slide 9: Returns to shareholders
Returns to shareholders Through dividends and share repurchases Amounts in billions, except as noted. Dollar changes may not recalculate due to rounding. $3.0 • Share repurchases during the quarter totaled $111 million representing 0.7 million shares, at $1.2 an average price of $159.77 per $0.7 $0.
Slide 10: Returns
Returns 1 Return on assets (ROA) Return on investment (ROI) 1 6.5% • ROI increased on a trailing 12-month 14.1% basis primarily as a result of lapping discrete charges for the opioid legal 5.6% settlement frameworks in Q3 FY23 • Discrete charges in Q4 FY23 totaled 1 4.6% approximately 30 bps ROI hea
Slide 11: Walmart U.S. comp sales
1 Walmart U.S. comp sales Net sales +4.4%, eCommerce +24% • Comp sales +4.9% with strength in 8.2% 8.3% grocery and health & wellness, partially 7.4% offset by softness in general merchandise 6.4% • Sales growth included increases in both store and digital transaction counts 4.9% • Strong share gain
Slide 12: Walmart U.S.
Gross profit rate +5 bps Walmart U.S. • Benefited from lapping last year's elevated markdowns and supply chain costs • Saw ongoing unfavorable product mix shifts as grocery and health & wellness increased as a portion of sales, while general merchandise sales declined Store Remodels: 233 Q3; 494 YTD
Slide 13: Walmart U.S. merchandise category performance details
Walmart U.S. Merchandise category performance details Category Comp Comments • Strong comps reflected continued share gains in dollars and units (according to Nielsen), and growth in private brand penetration (+20 bps) • Grocery inflation increased +MSD in Q3 (but moderated Grocery + mid single-digi
Slide 14: Walmart International net sales
Walmart International net sales1 Net sales (cc) $26.7 billion, +5.4% Amounts in billions, except as noted. Dollar changes may not recalculate due to rounding. 1 $28.0 • Sales growth (cc) led by Walmex and $27.6 $27.6 China $26.6 • Currency rate fluctuations positively $25.3 affected sales by $1.4 bi
Slide 15: Walmart International
Walmart Gross profit rate +151 bps International • Increase mostly from the timing shift of Flipkart’s The Big Billion Days (BBD) event • Partially offset by ongoing format and channel mix changes Strong local businesses Operating expenses as a percentage of net sales powered by Walmart +75 bps • De
Slide 16: Walmex
1,2 Walmex Net sales (cc): $10.6 billion, +9.4% Sales Increase • Continued strength in food and consumables 11.7% • Opened 130 new stores in past twelve 10.6% months, including 27 new stores in the 9.3% 8.7% quarter 8.0% • In Mexico, comp sales grew 8.0% driven by Bodega and Sam's Club Comparable Gr
Slide 17: Canada
1 Canada Net sales (cc): $5.8 billion, +5.3% Sales Increase • Continued momentum in food and consumables with softness in general merchandise 6.3% 5.7% • eCommerce growth improving led by 5.2% 4.8% 5.0% store fulfilled and marketplace Gross profit rate Increase • Lower supply chain costs partially o
Slide 18: China
1 China Net sales (cc): $4.5 billion, +25.3% Sales Increase • Continued strength in Sam’s Club and eCommerce 25.5% • Higher in-store traffic in both Sam’s and Hyper formats 18.6% 17.2% • Double-digit growth in both formats during Mid-Autumn Festival 13.3% • eCommerce penetration at 45% Comparable 5.
Slide 19: Sam's Club U.S. comp sales
1 Sam’s Club U.S. comp sales Net sales with fuel +2.8%, Net sales without fuel +3.2%, eCommerce +16% Sam's Club U.S. comp sales • Solid comp sales driven by increases in 12.7% transactions and units sold 11.9%12.2% 10.0% ◦ Transactions without fuel +4.0% 7.0% ◦ Average ticket without fuel -0.2% 5.5%
Slide 20: Sam's Club U.S.
Gross profit rate +16 bps, without fuel +9 bps Sam’s Club U.S. • Lower LIFO charge this year ($0M) vs. last year ($113M) benefited gross profit • Excluding LIFO, gross profit negatively affected by price investments in grocery, coupled with product mix shifts Operating expenses as a percentage of ne
Slide 21: Sam's Club U.S. category comparable sales
Sam’s Club U.S. Category comparable sales Category Comp Comments • Produce & floral, prepared foods, and bakery performed Fresh / Freezer / Cooler + mid single-digit well Grocery and Beverage + mid single-digit • Drinks and candy showed strength • Paper goods, laundry & home care, and health & beaut
Slide 22: Safe harbor and non-GAAP measures
Safe harbor and non-GAAP measures This presentation and related management commentary contains statements that may be "forward-looking statements" as defined in, and are intended to enjoy the protection of the safe harbor for forward- looking statements within the meaning of Section 21E of the Secur
Slide 23: 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 24: 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 Trailing Twelve Months Ending Oct 31, Jan 31, Apr 30, Jul 31, Oct 31, (Dollars in millions) 2022 2023 2023 2023 2023 Numerator
Slide 25: 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 INVESTMENT Trailing Twelve Months Ending Oct 31, Jan 31, Apr 30, Jul 31, Oct 31, (Dollars in millions) 2022 2023 2023 2023 2023 Numera
Slide 26: 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 $19.0 billion for the nine months ended October 31, 2023, which represents
Slide 27: Non-GAAP measures – free cash flow (cont.)
Non-GAAP measures – free cash flow (cont.) The following table sets forth a reconciliation of free cash flow, a non-GAAP financial measure, to net cash provided by operating activities, which we believe to be the GAAP financial measure most directly comparable to free cash flow, as well as informati
Slide 28: 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
Slide 29: Non-GAAP measures – constant currency (cont.)
Non-GAAP measures – constant currency (cont.) The table below reflects the calculation of constant currency for total revenues, net sales and operating income for the trailing five quarters. Three Months Ended Consolidated (Dollars in millions) Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Total Revenue:
Slide 30: Non-GAAP measures – adjusted operating expenses as a percentage of net sales
Non-GAAP measures – adjusted operating expenses as a percentage of net sales Adjusted operating expenses as a percentage of net sales is considered a non-GAAP financial measure under the SEC’s rules because it excludes certain charges included in operating, selling, general and administrative expens
Slide 31: 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
Slide 32: 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
Slide 33: Non-GAAP measures – adjusted EPS (cont.)
Non-GAAP measures – adjusted EPS (cont.) 3 3 Percent Three Months Ended Jul 31, 2023 Three Months Ended Jul 31, 2022 Change Diluted earnings per share: Reported EPS $2.92 $1.88 +55.3% Pre-Tax Tax 1 NCI Pre-Tax Tax 1 NCI Adjustments: Impact Impact Impact2 Net Impact Impact Impact Impact2 Net Impact U
Slide 34: Non-GAAP measures – adjusted EPS (cont.)
Non-GAAP measures – adjusted EPS (cont.) 3 3 Percent Three Months Ended Jan 31, 2023 Three Months Ended Jan 31, 2022 Change Diluted earnings per share: Reported EPS $2.32 $1.28 +81.3% Pre-Tax Tax 1 NCI Pre-Tax Tax 1 NCI Adjustments: Impact Impact Impact2 Net Impact Impact Impact Impact2 Net Impact U
Slide 35: Adjusted EBITDA and adjusted EBITDA margin
Non-GAAP measures – adjusted EBITDA and adjusted EBITDA margin The calculation of net income (loss) margin and adjusted EBITDA margin, along with a reconciliation of adjusted EBITDA margin to the calculation of net income (loss) margin, is as follows: We include net income (loss) and net income (los