Slide 1: Q3 FY2023 Financial presentation to accompany management commentary
Financial presentation to accompany management commentary Q3 FY2023
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 Walmart management’s guidance regarding adjusted earnings per share, consolidated net sales, consolidated operating income and consolidated adjusted operating income, capital expend
Slide 3: Fourth quarter and Fiscal Year 2023 guidance
Fourth quarter and Fiscal Year 2023 guidance The following guidance reflects the company’s expectations for Q4 and fiscal year 2023 and is provided on a non-GAAP basis as the company cannot predict certain elements which are included in reported GAAP results, such as the changes in fair value of the
Slide 4: Walmart Inc. - Q3 FY23
Walmart Inc. - Q3 FY23 Dollars in billions, except per share. Change is calculated as the change versus the prior year comparable period Operating expense as a Effective tax rate Total revenue Net sales percentage of net sales $152.8 $151.5 22.8% (23.5)% +8.7% +8.8% +144 bps EPS Total revenue, const
Slide 5: Walmart Inc. - Q3 FY23
Walmart Inc. - Q3 FY23 Dollars in billions. Change is calculated as the change versus the prior year comparable period Receivables, net Debt to capitalization1 $8.2 41.5% +11.8% +720 bps Inventories Return on assets2 Walmart+ benefits continue to expand driving membership growth $64.7 3.7% +12.6% +4
Slide 6: Walmart Inc. - YTD Q3 FY23
Walmart Inc. - YTD Q3 FY23 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 $15.7 $4.6 -$0.6 Capital expenditures Share repurchases2 In October, Walmart released our mid-y
Slide 7: Walmart U.S. - Q3 FY23
Walmart U.S. - Q3 FY23 Dollars in billions. Change is calculated as the change versus the prior year comparable period Net Sales Comparable sales1 Inventory $104.8 8.2% Total: +12.4% +8.5% Comparable transactions • ~70% of increase relates to inflation 2.1% • Remainder of growth due to improved in-s
Slide 8: Walmart U.S. - Q3 FY23
Walmart U.S. - Q3 FY23 Dollars in billions. Change is calculated as the change versus the prior year comparable period Gross profit rate Operating expense rate Operating income -77 bps -60 bps $5.1 +4.8% • Increased general merchandise • Expense leverage reflects higher sales • Operating expense lev
Slide 9: Walmart U.S. - quarterly merchandise highlights
Walmart U.S. - quarterly merchandise highlights Category Comp sales Details • Sales growth led by strength in food (+mid-teens); reflected continued market share gains (according to Nielsen) Grocery + mid-teens • Grocery sales increased mid-20% on a two-year stack • Food units sold increased year-ov
Slide 10: Walmart International - Q3 FY23
Walmart International - Q3 FY23 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 $25.3 -131 bps $0.9 $12.2 +7.1% -1.1% +2.5% • Primarily due to ti
Slide 11: Walmart International - Q3 FY23
Walmart International - Q3 FY23 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 +12
Slide 12: Walmart International - Q3 FY23
Walmart International - Q3 FY23 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 Relatively Flat Decrease Decrease x • Mix effect from continued growth in • Higher sales in lower marg
Slide 13: Sam's Club - Q3 FY23
Sam's Club - Q3 FY23 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 $21.4 +20% -46 bps $0.6 +12.8% • Strong contribution from both curbside • LIFO charge of $113 million
Slide 14: Sam's Club - Q3 FY23
Sam's Club - Q3 FY23 Dollars in billions. Change is calculated as the change versus the prior year comparable period Without Fuel Net sales Comparable transactions Gross profit rate Operating income $18.3 +4.8% -51 bps $0.4 +10.2% • On a two-year stack, comp transactions +7.9% increased 15.9% Compar
Slide 15: Sam's Club - quarterly financial highlights
Sam's Club - quarterly financial highlights Category Comp sales Details Fresh / Freezer / Cooler + low double-digit • Cooler, fresh meat & seafood, produce & floral, and deli performed well Grocery and beverage + mid-teens • Dry grocery, drinks, and chips showed strength Consumables + mid single-dig
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. Net cash provided by operating activities was $15.7 billion for the nine months ended October 31, 2022, which represents
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 October 31, 2022 Change1 Nine Months Ended October 31, 20225 Change1 Diluted earnings per share: Reported EPS $ (0.66) -159.5% $ 1.97 -45.1% Pre-Tax Tax NCI Net Pre-Tax Tax NCI Net Adjustments5: Impact Impact2,3 Impact4 Impa
Slide 23: Non-GAAP measures - adjusted EPS (cont.)
Non-GAAP measures - adjusted EPS (cont.) As previously disclosed in our third quarter ended October 31, 2021 press release, we have calculated Adjusted EPS for the three and nine months ended October 31, 2021 by adjusting EPS for the following: (1) unrealized and realized gains and losses on the com
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