Slide 1: Financial presentation to accompany management commentary FY24 Q4
Financial presentation to accompany management commentary FY24 Q4
Slide 2: Guidance
Guidance Metric Consolidated net sales (cc) Q1 Increase 4.0% to 5.0%, leap year estimated to benefit approximately 100bps Consolidated operating income (cc) Increase 3.0% to 4.5% The following guidance reflects the Company’s expectations for the first quarter and fiscal Adjusted EPS $1.48 to $1.56 p
Slide 3: Total revenues
Total revenues 1 Total revenues (cc) $172.1 billion, up +4.9% Amounts in billions, except as noted. Dollar changes may not recalculate due to rounding. $173.4 • Total revenues reached $173.4 $164.0 billion with strength across all $161.6 $160.8 operating segments $152.3 • Positively affected by $1.3
Slide 4: Gross profit rate
Gross profit rate Gross profit rate +39bps to 23.3% 24.0% 24.0% • Improvement from continuing to manage pricing aligned to 23.7% competitive historic price gaps and lower markdowns resulting 23.3% from strong inventory management 22.9% • Partially offset by the timing of Flipkart's The Big Billion D
Slide 5: Operating expenses as a percentage of net sales
Operating expenses as a percentage of net sales 1 Adjusted operating expenses as a percentage of net sales , +16bps to 20.0% Operating expenses as a percentage Adjusted operating expenses as a 1 of net sales percentage of net sales 21.0% 21.0% • Operating expenses leveraged on a reported basis 36bps
Slide 6: Operating income
Operating income 1 Adjusted operating income of $7.3 billion, up 13.2% Amounts in billions, except as noted. Dollar changes may not recalculate due to rounding. 1 Operating income Adjusted operating income 1 • Adjusted operating income up 13.2% $7.3 $7.4 relative to 5.6% growth in net sales, $7.3 $7
Slide 7: EPS
EPS 1 Adjusted EPS of $1.80, up 5.3% 1 EPS Adjusted EPS $2.92 1 $2.32 • Adjusted EPS of $1.80 excludes $2.03 the effect, net of tax, from a net $1.84 $1.80 $1.71 gain of $0.23 on equity and other $1.47 $1.53 investments 1 • Adjusted EPS increased 5.3% $0.62 due primarily to strong growth in $0.17 op
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 $28.8 $15.1 • Operating cash flow increased $6.9 billion primarily due to higher cash $12.0 provided by operating income, as well as timing of certain paymen
Slide 9: Returns to shareholders
Returns to shareholders Through dividends and share repurchases Amounts in billions, except as noted. Dollar changes may not recalculate due to rounding. $1.2 • Share repurchases during the quarter totaled $1,497 million $0.7 representing 9.5 million shares, at $0.5 $0.1 $1.5 an average price of $15
Slide 10: Returns
Returns 1 Return on assets (ROA) Return on investment (ROI) 15.0% 6.6% 1 6.5% • ROI increased primarily as a result of an increase in operating income, primarily due to lapping opioid legal 5.6% 14.1% charges and business reorganization and restructuring charges recorded in FY23, as well as improvem
Slide 11: Walmart U.S. comp sales
1 Walmart U.S. comp sales Net sales +3.4%, eCommerce +17% • Comp sales +4.0% with strength in grocery and health & wellness, partially 8.3% offset by softness in general merchandise 7.4% ◦ Transactions without fuel +4.3% 6.4% ◦ Average ticket without fuel -0.3% 4.9% • Strong growth in-store and digi
Slide 12: Walmart U.S.
Gross profit rate +64 bps Walmart U.S. • Maintained strong price gaps - managing pricing aligned to historic price gaps • Benefited from lower markdowns as a result of improved inventory management • Category mix pressure continued as grocery and health & wellness increased as a portion of sales, wh
Slide 13: Walmart U.S. merchandise category performance details
Walmart U.S. Merchandise category performance details Category Comp Comments • Strong comps reflected continued share gains in dollars and units (according to Nielsen) • Grocery inflation +LSD in Q4 (but moderated ~150 bps Grocery + mid single-digit versus Q3); up +high-teens on a two-year stack • F
Slide 14: Walmart International net sales
Walmart International net sales1 Net sales (cc) $31.2 billion, +13.0% Amounts in billions, except as noted. Dollar changes may not recalculate due to rounding. 1 • Sales growth (cc) led by Flipkart, $32.4 Walmex, and China with strong performance in festive events across markets $28.0 • Currency rat
Slide 15: Walmart International
Walmart Gross profit rate -39 bps International • Decrease due to the timing shift of Flipkart's The Big Billion Days (BBD) event • Partially offset by a higher rate in most markets, led by Walmex and Canada Strong local businesses Operating expenses as a percentage of net sales powered by Walmart -
Slide 16: Walmex
1,2 Walmex Net sales (cc): $12.9 billion, +7.7% Sales • Continued strength in food and consumables • Opened 162 new stores in past twelve months, including 101 new stores in the 10.6% quarter 9.3% 8.7% • In Mexico, comp sales grew 6.6% driven 8.0% by Bodega and Sam's Club 6.3% • Double-digit growth
Slide 17: Canada
1 Canada Net sales (cc): $6.0 billion, +1.8% Sales • Strong performance during festive events 6.3% 5.7% • Continuation of food and consumables 5.0% growth outpacing general merchandise 4.8% • eCommerce growth led by store fulfilled and marketplace Gross profit rate Increase Comparable 1.5% sales gro
Slide 18: China
1 China Net sales (cc): $4.0 billion, +11.3% Sales • Continued strength in Sam’s Club and 25.5% eCommerce • Growth negatively affected by a later start to the Chinese New Year season 18.6% 17.2% this year compared to last year 13.3% • eCommerce penetration at 48% Gross profit rate Relatively flat Co
Slide 19: Sam's Club U.S. comp sales
1 Sam’s Club U.S. comp sales Net sales with fuel +2.0%, Net sales without fuel +3.3%, eCommerce +17% Sam's Club U.S. comp sales • Solid comp sales driven by increases in transactions and unit volume 11.9%12.2% ◦ Transactions without fuel +3.6% 7.0% ◦ Average ticket without fuel -0.4% 5.5% 4.2% • Str
Slide 20: Sam's Club U.S.
Gross profit rate +31 bps, without fuel +22 bps Sam’s Club U.S. • Rate increase primarily due to lapping elevated markdowns last year Operating expenses as a percentage of net sales +14 bps, without fuel +2 bps • Lower fuel sales due to price deflation negatively affected expense leverage Membership
Slide 21: Sam's Club U.S. category comparable sales
Sam’s Club U.S. Category comparable sales Category Comp Comments • Fresh meat, produce & floral, and prepared foods Fresh / Freezer / Cooler + mid single-digit performed well Grocery and Beverage + low single-digit • Candy, drinks and snacks showed strength • Paper goods, laundry & home care, and ba
Slide 22: Supplemental Information - Common Stock Split
Supplemental Information - Common Stock Split On January 30, 2024, we announced our board of directors has authorized a 3-for-1 forward split of our common stock and a proportionate increase in the number of authorized shares. As a result of the stock split, each holder of record of common stock as
Slide 23: 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 24: 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 25: 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 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 ASSETS Trailing Twelve Months Ending Jan 31, Apr 30, Jul 31, Oct 31, Jan 31, (Dollars in millions) 2023 2023 2023 2023 2024 Numerator
Slide 27: 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 Ending Jan 31, Apr 30, Jul 31, Oct 31, Jan 31, (Dollars in millions) 2023 2023 2023 2023 2024 Numera
Slide 28: 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 $35.7 billion for the fiscal year ended January 31, 2024, which represents
Slide 29: 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 30: 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 31: 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) Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Total Revenue:
Slide 32: 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 33: 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 34: Non-GAAP measures – adjusted operating income (cont.)
Non-GAAP measures – adjusted operating income (cont.) The table below reflects the calculation of adjusted operating income and adjusted operating income in constant currency for the three months ended January 31, 2024 and January 31, 2023 for the Walmart International segment. Three Months Ended Wa
Slide 35: 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 36: Non-GAAP measures – adjusted EPS (cont.)
Non-GAAP measures – adjusted EPS (cont.) 3 3 Percent Three Months Ended Oct 31, 2023 Three Months Ended Oct 31, 2022 Change Diluted earnings per share: Reported EPS $0.17 $(0.66) NM Pre-Tax Tax 1 NCI Net Pre-Tax Tax 1 NCI Net Adjustments: Impact Impact Impact2 Impact Impact Impact Impact2 Impact Unr
Slide 37: Non-GAAP measures – adjusted EPS (cont.)
Non-GAAP measures – adjusted EPS (cont.) 3 3 Percent Three Months Ended Apr 30, 2023 Three Months Ended Apr 30, 2022 Change Diluted earnings per share: Reported EPS $0.62 $0.74 -16.2% Pre-Tax Tax 1 NCI Net Pre-Tax Tax 1 NCI Net Adjustments: Impact Impact Impact2 Impact Impact Impact Impact2 Impact U
Slide 38: Adjusted EBITDA and adjusted EBITDA margin
Non-GAAP measures – adjusted EBITDA and adjusted EBITDA margin The calculation of net income (loss) margin and adjusted EBITDA margin, along with a reconciliation of adjusted EBITDA margin to the calculation of net income (loss) margin, is as follows: We include net income (loss) and net income (los