Walmart Inc. · NASDAQ:WMT
Walmart — Q2 FY2022 Earnings Presentation
24 slides from Walmart's earnings presentation, August 2021
Slide 1: Financial presentation to accompany management commentary Q2 FY2022
Financial presentation to accompany management commentary Q2 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 Q3 and full-year guidance
Fiscal 2022 Q3 and full-year guidance The following guidance reflects the company’s updated expectations for Q3 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. - Q2 FY22
Walmart Inc. - Q2 FY22 Dollars in billions, except per share. Change is calculated as the change versus the prior year comparable period Total revenue Operating expense as a Effective tax rate Net sales percentage of net sales2 $141.0 $139.9 20.4% 26.3% +2.4% +2.2% +79 bps -81 bps Total revenue, con
Slide 5: Walmart Inc. - Q2 FY22
Walmart Inc. - Q2 FY22 Dollars in billions. Change is calculated as the change versus the prior year comparable period Receivables, net Debt to capitalization1 $6.1 36.5% +19.4% -440 bps Inventories Return on assets2 $47.8 4.4% +16.2% -330 bps Accounts payable Return on investment2 $49.6 14.8% +7.1%
Slide 6: Walmart Inc. - YTD Q2 FY22
Walmart Inc. - YTD Q2 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 $12.4 $3.1 -$6.5 ($1.5 in 2Q22) Capital expenditures Share repurchases2 $5.0 $5.2 +$1.5 ($2.4 i
Slide 7: Walmart U.S. - Q2 FY22
Walmart U.S. - Q2 FY22 Dollars in billions. Change is calculated as the change versus the prior year comparable period Net Sales Comparable sales1, 2 Inventory $98.2 5.2% Total: +20% +5.3% Comparable transactions • Increase includes lapping last year's COVID- related effects on inventory as well as
Slide 8: Walmart U.S. - Q2 FY22
Walmart U.S. - Q2 FY22 Dollars in billions. Change is calculated as the change versus the prior year comparable period Gross profit rate Operating expense rate Operating income +20 bps -49 bps $6.1 +20.4% • Benefited from COVID vaccines this • Expense leverage reflects strong Adj. operating income1
Slide 9: Walmart U.S. - quarterly merchandise highlights
Walmart U.S. - quarterly merchandise highlights Category Comp sales Details • Sales growth of 6% reflected strong market share gains (according to Nielsen) and modest ticket inflation; sales accelerated through the quarter and increased low double- digits on a two-year stacked basis Grocery + mid si
Slide 10: Walmart International - Q2 FY22
Walmart International - Q2 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 Adj. operating income1 $23.0 -76 bps $0.9 $0.9 -15.2% • Negatively affected
Slide 11: Walmart International - Q2 FY22
Walmart International - Q2 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 +6.
Slide 12: Walmart International - Q2 FY22
Walmart International - Q2 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 Increase Decrease Decrease • Change in mix to higher margin • Change in mix to lower margin • S
Slide 13: Sam's Club - Q2 FY22
Sam's Club - Q2 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 $18.6 +27% -88 bps $0.7 +13.9% • Strong curbside performance and solid • Unfavorable fuel mix and low
Slide 14: Sam's Club - Q2 FY22
Sam's Club - Q2 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 $16.4 -30 bps +7.7% ~180 bps +7.7% • On a two-year stack, comp sales increased 21.0% Operating exp
Slide 15: Sam's Club - quarterly financial highlights
Sam's Club - quarterly financial highlights Category Comp sales Details Fresh / Freezer / Cooler + low double-digit • Fresh meat, prepared foods, produce and floral performed well Grocery and beverage + mid-teens • Drinks, snacks, candy and adult beverage showed strength Consumables + high single-di
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 July 31, Ended July 31, (Dollars in mil
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 $12.4 billion for the six months ended July 31, 2021, which decrease
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 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 21: 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 22: Non-GAAP measures - adjusted EPS (cont.)
Non-GAAP measures - adjusted EPS (cont.) Percent Percent Three Months Ended July 31, 2021 Change1 Six Months Ended July 31, 20214 Change1 Diluted earnings per share: Reported EPS $ 1.52 -33.0% $ 2.48 -32.4% Pre-Tax Tax Net Pre-Tax Tax Net Adjustments: Impact Impact2,3 Impact Impact Impact2,3 Impact
Slide 23: Non-GAAP measures - adjusted EPS (cont.)
Non-GAAP measures - adjusted EPS (cont.) As previously disclosed in our second quarter ended July 31, 2020 press release, we have calculated Adjusted EPS for the three and six months ended July 31, 2020 by adjusting EPS for the following: (1) unrealized gains and losses on the Company’s equity inves
Slide 24: Additional resources at stock.walmart.com
Additional resources at stock.walmart.com • Unit counts & square footage • Comparable store sales, including and excluding fuel • Terminology 24