Walmart Inc. · NASDAQ:WMT
Walmart — Q3 2025 Earnings Presentation
36 slides from Walmart's earnings presentation, Nov 19, 2024
Slide 1: Financial presentation to accompany management commentary FY25 Q3
Financial presentation to accompany management commentary FY25 Q3
Slide 2: Guidance Fiscal Year 2025
Guidance Fiscal Year 2025 The Company’s fiscal 1 year guidance is based on the1 following FY24 figures: Net sales: $642.6 billion, adjusted operating income : $27.1 billion, and adjusted EPS : $2.22. The Company’s full year guidance assumes a generally stable consumer and continued pressure from its
Slide 3: Total revenues
Total revenues 1 Total revenues (cc) $170.8 billion, up +6.2% Amounts in billions, except as noted. Dollar changes may not recalculate due to rounding. $173.4 $169.3 $169.6 • Total revenues reached $169.6 billion with strength across $160.8 $161.5 all operating segments • Negative impact of $1.2 bil
Slide 4: Gross profit rate
Gross profit rate Gross profit rate +21bps to 24.2% 24.4% 24.2% • Led by improvements in Walmart U.S. 24.1% 24.0% • Reflects improved inventory management, continuing to manage pricing aligned to competitive price gaps, as well as improved eCommerce 23.3% margins and favorable business mix in both W
Slide 5: Operating expenses as a percentage of net sales
Operating expenses as a percentage of net sales Operating expenses as a percentage of net sales, +19bps to 21.2% Operating expenses as a percentage Adjusted operating expenses as a 1 of net sales percentage of net sales 21.2% 21.2% 21.0% 21.0% 20.8% 20.6% 20.6% 20.6% • Operating expenses deleveraged
Slide 6: Operating income
Operating income Operating income of $6.7 billion, up 8.2% Amounts in billions, except as noted. Dollar changes may not recalculate due to rounding. 1 Operating income Adjusted operating income 1 $7.9 $7.9 • Operating income (cc) up 9.8% relative to 6.1% growth in net sales $7.3 $7.3 $7.1 1 $6.8 (cc
Slide 7: EPS
EPS 2 Adjusted EPS of $0.58, up 13.7% 1 1,2 EPS Adjusted EPS $0.68 $0.67 $0.63 $0.60 $0.60 $0.58 $0.56 $0.57 2 • Adjusted EPS of $0.58 excludes $0.51 the effects, net of tax, of $0.01 from net losses on equity and other investments $0.06 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q3 FY24 Q4 FY24 Q1 FY2
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 $35.7 • Operating cash flow increased $3.9 billion primarily due an increase in $15.1 cash provided by operating income and lapping the payment of accrued opioid l
Slide 9: Returns to shareholders
Returns to shareholders Dividends and share repurchases Amounts in billions, except as noted. Dollar amounts may not recalculate due to rounding. • Share repurchases during the quarter totaled $1.0 billion representing 12.6 million shares, $1.1 $1.0 $1.0 at an average price of $77.57 $0.1 $1.5 per s
Slide 10: Returns
Returns 1 Return on assets (ROA) Return on investment (ROI) 1 15.1% 15.1% • ROI increased primarily as a result of 7.9% 7.8% 15.0% 15.0% an increase in operating income, primarily due to improvements in business performance as well as 6.6% lapping business reorganization and 6.5% 6.4% 14.1% restruct
Slide 11: Walmart U.S. comp sales
1 Walmart U.S. comp sales Net sales +5.0%, eCommerce +22% • Strong momentum as customers respond to value & convenience offering 5.3% • Comp sales +5.3% driven by growth in 4.9% transactions and unit volumes across both stores and eCommerce channels 4.2% 4.0% 3.8% ◦ Transactions ex fuel: +3.1% ◦ Ave
Slide 12: Walmart U.S.
Gross profit rate +42bps Walmart U.S. • Strong inventory management and lower markdowns as well as managing pricing to maintain competitive price gaps to the retail market • Advertising and data analytics & insights businesses benefited business mix • Net delivery cost per order decreased ~40%, the
Slide 13: Walmart U.S. merchandise category performance details
Walmart U.S. Merchandise category performance details Category Comp Comments • Strong comps driven by increased transactions, units and share gains • Like-for-like inflation was ~100bps due primarily to eggs + mid single-digit • Food units reached highest level in four years; broad-based Grocery sal
Slide 14: Walmart International net sales
Walmart International net sales1 Net sales (cc) $31.5 billion, +12.4% Amounts in billions, except as noted. Dollar changes may not recalculate due to rounding. 1 $32.4 • Sales growth (cc) led by Flipkart, Walmex, and China $30.3 $29.8 $29.6 • eCommerce sales grew 43% led by $28.0 marketplace and sto
Slide 15: Walmart International
Walmart Gross profit rate -85bps International • Decrease due to timing shift of BBD, partially offset by a higher rate in most markets • Benefited by business mix changes Strong local businesses Operating expenses as a percentage of net sales powered by Walmart -86bps • Leverage driven by timing sh
Slide 16: Walmex
1,2 Walmex Net sales (cc): $13.1 billion, +5.9% Sales 9.2% • Balanced growth across categories with 8.0% positive growth in general merchandise 6.3% • In Mexico, comp sales grew 4.5%, driven by Sam's Club and Bodega 5.0% 4.4% • Opened 177 new stores in the past 12 months, including 39 new stores in
Slide 17: Canada
1 Canada Net sales (cc): $5.8 billion, +3.0% Sales 5.0% • Growth across all channels 3.8% • Accelerated eCommerce growth, led by 3.4% store-fulfilled pickup and delivery 3.1% • Continued strength in food and consumables with softness in general 1.5% merchandise Comparable sales growth • Increased pr
Slide 18: China
1 China Net sales (cc): $4.9 billion, +17.0% Sales 18.6% • Continued strength in Sam’s Club and 15.0% eCommerce 13.8% 12.5% • Double-digit growth during Mid-Autumn Festival • Positive offline comp traffic in both 6.6% Sam's and Hyper formats Comparable sales growth Gross profit rate Increase • Prima
Slide 19: Sam's Club U.S. comp sales
1 Sam’s Club U.S. comp sales Net sales +3.9%, Net sales without fuel +7.2%, eCommerce +26% • Comp sales strength driven by increases in 7.0% transactions and unit volumes ◦ Transactions ex fuel: +6.4% 5.2% ◦ Average ticket ex fuel: +0.5% 4.6% 4.4% 3.8% 3.7% • Strength in food and health & wellness 3
Slide 20: Sam's Club U.S.
Gross profit rate +47bps, without fuel +12bps Sam's Club U.S. • Strong sales with good seasonal sell-through and benefits from disciplined inventory management Scan & Go penetration up over 250bps • Partially offset by higher eCommerce-related shipping expenses due to strong digital growth Member's
Slide 21: Sam's Club U.S. category comparable sales
Sam’s Club U.S. Category comparable sales Category Comp Comments Fresh / Freezer / Cooler + low double-digit • Driven by cooler, fresh meat, produce & floral and deli Grocery and Beverage + mid single-digit • Led by dry grocery, snacks and drinks • Strength in paper goods, laundry & home care and ba
Slide 22: Supplemental Information - FY25 and FY26 Comparable Sales 4-5-4 Reporting Calendars
Supplemental Information - FY25 and FY26 Comparable Sales 4-5-4 Reporting Calendars We report U.S. comparable sales on a 13-week and 52-week retail calendar — commonly referred to as a "4-5-4" calendar — which uses 364 days in a year. In certain years, it becomes necessary to add a 53rd week to our
Slide 23: 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 24: Non-GAAP measures – ROI
Non-GAAP measures – ROI We include return on assets ("ROA") and return on investment (“ROI”) as metrics to assess our return on capital. ROA is the most directly comparable measure based on our financial statements presented in accordance with GAAP, while ROI is considered a non-GAAP financial measu
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 ASSETS Trailing Twelve Months Ended Oct 31, Jan 31, Apr 30, Jul 31, Oct 31, (Dollars in millions) 2023 2024 2024 2024 2024 Numerator C
Slide 26: 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 Ended Oct 31, Jan 31, Apr 30, Jul 31, Oct 31, (Dollars in millions) 2023 2024 2024 2024 2024 Numerat
Slide 27: 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 $22.9 billion for the nine months ended October 31, 2024, which represents
Slide 28: 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 29: 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 30: 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 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Total revenues:
Slide 31: 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 32: 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 33: 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 34: Non-GAAP measures – adjusted EPS (cont.)
Non-GAAP measures – adjusted EPS (cont.) 3 3 Percent Three Months Ended July 31, 2024 Three Months Ended July 31, 2023 Change Diluted earnings per share: Reported EPS $0.56 $0.97 -42.3% Pre-Tax Tax 1 NCI Net Pre-Tax Tax 1 NCI Net Adjustments: Impact Impact Impact2 Impact Impact Impact Impact2 Impact
Slide 35: Non-GAAP measures – adjusted EPS (cont.)
Non-GAAP measures – adjusted EPS (cont.) 3 3 Percent Three Months Ended Jan 31, 2024 Three Months Ended Jan 31, 2023 Change Diluted earnings per share: Reported EPS $0.68 $0.77 -11.7% Pre-Tax Tax 1 NCI Net Pre-Tax Tax 1 NCI Net Adjustments: Impact Impact Impact2 Impact Impact Impact Impact2 Impact U
Slide 36: Adjusted EBITDA and adjusted EBITDA margin
Non-GAAP measures – adjusted EBITDA and adjusted EBITDA margin The calculation of net income margin and adjusted EBITDA margin, along with a reconciliation of adjusted EBITDA margin to the calculation of net income margin, is as follows: We include net income and net income margin, which are calcula