Walmart Inc. · NASDAQ:WMT
Walmart — Q3 FY2022 Earnings Presentation
23 slides from Walmart's earnings presentation, November 2021
Slide 1: Financial presentation to accompany management commentary Q3 FY2022
Financial presentation to accompany management commentary Q3 FY2022
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, statements that may be deemed to be "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Act"), that are intended
Slide 3: Fiscal 2022 Q4 and full-year guidance
Fiscal 2022 Q4 and full-year guidance The following guidance reflects the company’s updated expectations for Q4 and fiscal year 2022 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 exchang
Slide 4: Walmart Inc. - Q3 FY22
Walmart Inc. - Q3 FY22 Dollars in billions, except per share. Change is calculated as the change versus the prior year comparable period Operating expense as a Total revenue Net sales percentage of net sales2 Effective tax rate $140.5 $139.2 21.3% 24.5% +4.3% +4.1% -4 bps -242 bps Total revenue, con
Slide 5: Walmart Inc. - Q3 FY22
Walmart Inc. - Q3 FY22 Dollars in billions. Change is calculated as the change versus the prior year comparable period Receivables, net Debt to capitalization1 $7.3 34.3% +27.4% -410 bps Inventories Return on assets2 $57.5 3.3% +10.9% -490 bps Accounts payable Return on investment2 $57.2 14.5% +5.5%
Slide 6: Walmart Inc. - YTD Q3 FY22
Walmart Inc. - YTD Q3 FY22 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 $16.3 $4.6 -$6.6 ($1.5 in 3Q22) Capital expenditures Share repurchases2 $8.6 $7.4 +$2.2 ($2.2 i
Slide 7: Walmart U.S. - Q3 FY22
Walmart U.S. - Q3 FY22 Dollars in billions. Change is calculated as the change versus the prior year comparable period Net Sales Comparable sales1, 2 Inventory $96.6 9.2% Total: +11.5% +9.3% Comparable transactions • Increase reflects preparation for an expected strong holiday season eCommerce net s
Slide 8: Walmart U.S. - Q3 FY22
Walmart U.S. - Q3 FY22 Dollars in billions. Change is calculated as the change versus the prior year comparable period Gross profit rate Operating expense rate Operating income -12 bps +20 bps $4.9 +5.9% • Reflects increased costs in the supply • Expenses deleveraged due primarily chain to investmen
Slide 9: Walmart U.S. - quarterly merchandise highlights
Walmart U.S. - quarterly merchandise highlights Category Comp sales Details • Sales growth of nearly 10% reflected strong market share gains (according to Nielsen) and low-to-mid single digit ticket inflation; on a two-year stacked basis, sales increased by a mid-teens percentage; strong price posit
Slide 10: Walmart International - Q3 FY22
Walmart International - Q3 FY22 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 $23.6 -86 bps $0.9 $11.9 -20.1% • Negatively affected by 36 bps f
Slide 11: Walmart International - Q3 FY22
Walmart International - Q3 FY22 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 +8.
Slide 12: Walmart International - Q3 FY22
Walmart International - Q3 FY22 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 Slight Decrease Decrease Relatively Flat • Investments in price and mix shift • Change in mix to lower
Slide 13: Sam's Club - Q3 FY22
Sam's Club - Q3 FY22 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 $19.0 +32% -127 bps $0.5 +19.7% • Strong contribution from both direct- • Unfavorable fuel mix and lo
Slide 14: Sam's Club - Q3 FY22
Sam's Club - Q3 FY22 Dollars in billions. Change is calculated as the change versus the prior year comparable period Without Fuel Net sales Gross profit rate Comparable sales1, 2 eCommerce contribution $16.6 -90 bps +13.9% ~170 bps +13.8% • On a two-year stack, comp sales increased 25.0% Operating e
Slide 15: Sam's Club - quarterly financial highlights
Sam's Club - quarterly financial highlights Category Comp sales Details Fresh / Freezer / Cooler + mid-teens • Fresh meat, produce and floral and prepared foods performed well Grocery and beverage + high-teens • Drinks, dry grocery, snacks and candy showed strength Consumables + high-teens • Paper g
Slide 16: 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 17: 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 31, Ended October 31, (Dollars
Slide 18: 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 $16.3 billion for the nine months ended October 31, 2021, which decr
Slide 19: 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 20: 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 21: Non-GAAP measures - adjusted EPS (cont.)
Non-GAAP measures - adjusted EPS (cont.) Percent Percent Three Months Ended October 31, 2021 Change1 Nine Months Ended October 31, 20214 Change1 Diluted earnings per share: Reported EPS $ 1.11 -38.3% $ 3.59 -34.5% Pre-Tax Tax Pre-Tax Tax Adjustments: Impact Impact2,3 Net Impact Impact Impact2,3 Net
Slide 22: Non-GAAP measures - adjusted EPS (cont.)
Non-GAAP measures - adjusted EPS (cont.) As previously disclosed in our third quarter ended October 31, 2020 press release, we have calculated Adjusted EPS for the three and nine months ended October 31, 2020 by adjusting EPS for the following: (1) unrealized gains and losses on the Company’s equity
Slide 23: Additional resources at stock.walmart.com
Additional resources at stock.walmart.com • Unit counts & square footage • Comparable store sales, including and excluding fuel • Terminology 23