Walmart Inc. · NASDAQ:WMT
Walmart — Q3 FY2021 Earnings Presentation
23 slides from Walmart's earnings presentation, November 2020
Slide 1: Financial presentation to accompany management commentary Q3 FY2021
Financial presentation to accompany management commentary Q3 FY2021
Slide 2: Safe harbor and non-GAAP measures
Safe harbor and non-GAAP measures This presentation 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 Securities Exchange Act of 1934, as amen
Slide 3: Walmart Inc. - 3Q FY21
Walmart Inc. - 3Q FY21 Dollars in billions, except per share. Change is calculated as the change versus the prior year comparable period Total revenue $134.7 Membership and Other Income Operating income +5.2% $1.0 $5.8 EPS Total revenue, constant currency1 -5.3% +22.5% $1.80 $135.8 +56.5% Gross prof
Slide 4: Walmart Inc. - 3Q FY21
Walmart Inc. - 3Q FY21 Dollars in billions. Change is calculated as the change versus the prior year comparable period Receivables, net Debt to capitalization1 $5.8 38.4% +2.8% -650 bps Inventories Return on assets2 $51.8 8.2% +0.6% +190 bps Accounts payable Return on investment2 $54.2 13.7% +8.8% —
Slide 5: Walmart Inc. - YTD 3Q FY21
Walmart Inc. - YTD 3Q FY21 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 $22.9 $4.6 +$8.3 ($1.5 in 3Q21) Capital expenditures Share repurchases2 $6.4 $1.2 -$1.3 ($0.5 i
Slide 6: Walmart U.S. - 3Q FY21
Walmart U.S. - 3Q FY21 Dollars in billions. Change is calculated as the change versus the prior year comparable period Net Sales Comparable sales1, 2 Inventory $88.4 6.4% Comp store: +3.6% +6.2% Total: +5.5% Comparable transactions eCommerce net sales growth -14.2% • Increase primarily reflects inve
Slide 7: Walmart U.S. - 3Q FY21
Walmart U.S. - 3Q FY21 Dollars in billions. Change is calculated as the change versus the prior year comparable period Gross profit rate Operating expense rate Operating income +33 bps +9 bps $4.6 +9.9% • Strategic sourcing initiatives and • Expense leverage negatively affected fewer markdowns benef
Slide 8: Walmart U.S. - quarterly merchandise highlights
Walmart U.S. - quarterly merchandise highlights Category Comp sales Details • Food sales reflected broad-based strength across most categories and improved throughout the quarter; consumables sales growth was led by strength in household Grocery + mid single-digit chemicals and paper products • Pick
Slide 9: Walmart International - 3Q FY21
Walmart International - 3Q FY21 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 $29.6 +90 bps $1.1 $1.1 +1.3% • Primarily due to Fli
Slide 10: Walmart International - 3Q FY21
Walmart International - 3Q FY21 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 United Kingdom2 Net
Slide 11: Walmart International - 3Q FY21
Walmart International - 3Q FY21 Results are presented on a constant currency basis. Change is calculated as the change versus the prior year comparable period Walmex1 China Canada United Kingdom Gross profit rate Increase Decrease Increase Increase • Cost of goods savings • Change in mix to lower •
Slide 12: Sam's Club - 3Q FY21
Sam's Club - 3Q FY21 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 $15.8 +41% +79 bps $0.4 +8.3% • Strong direct-to-home performance • Higher fuel margins, reduced toba
Slide 13: Sam's Club - 3Q FY21
Sam's Club - 3Q FY21 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 $14.6 +41 bps +11.1% ~230 bps +11.6% Operating expense rate Operating income Comparable transactio
Slide 14: Sam's Club - quarterly financial highlights
Sam's Club - quarterly financial highlights Category Comp sales Details Fresh / Freezer / Cooler + high teens • Fresh meat, frozen and produce performed well Grocery and beverage + mid teens • Dry grocery, juice, snacks and soda performed well Consumables + low 20% • Broad-based strength, including
Slide 15: 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 16: 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 17: 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 $22.9 billion for the nine months ended October 31, 2020, which incr
Slide 18: 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 19: 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 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, 2020 Change1 Nine Months Ended October 31, 20205 Change1 Diluted earnings per share: Reported EPS $ 1.80 56.5% $ 5.48 46.5% Pre-Tax Tax NCI Net Pre-Tax Tax NCI Net Adjustments: Impact Impact2,3 Impact4 Impact Imp
Slide 22: Non-GAAP measures - adjusted EPS (cont.)
Non-GAAP measures - adjusted EPS (cont.) As previously disclosed in our third quarter ended October 31, 2019 press release, we have calculated Adjusted EPS for the three and nine months ended October 31, 2019 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