Walmart Inc. · NASDAQ:WMT
Walmart — Q4 FY20 Earnings Presentation
28 slides from Walmart's earnings presentation, February 2020
Slide 1: Financial presentation to accompany management transcript Q4 FY20
Financial presentation to accompany management transcript Q4 FY20
Slide 2: Safe harbor and non-GAAP measures
Safe harbor and non-GAAP measures This presentation contains statements as to Walmart management's guidance regarding earnings per share, consolidated net sales growth, Walmart U.S. eCommerce net sales growth, Walmart International net sales growth, consolidated operating income, effective tax rate,
Slide 3: Fiscal 2021 full year guidance
Fiscal 2021 full year guidance The following guidance reflects the company’s expectations for fiscal year 2021. Assumptions in the guidance include that economic conditions, currency rates and the tax and regulatory landscape remain generally consistent. The company continues to monitor the events i
Slide 4: Walmart Inc.
Walmart Inc. (Amounts in millions, except per share data) Q4 $ Δ1 % Δ1 YTD $ Δ1 % Δ1 Total revenue $ 141,671 $ 2,878 2.1 % $ 523,964 $ 9,559 1.9 % 2 Total revenue, constant currency 141,658 2,865 2.1 % 528,133 13,728 2.7 % Net sales 140,608 2,865 2.1 % 519,926 9,597 1.9 % Net sales, constant currenc
Slide 5: Walmart Inc.
Walmart Inc. Q4 bps Δ1 YTD bps Δ1 Gross profit rate 23.4% (47) bps 24.1% (40) bps Operating expenses as a percentage of net sales2 20.3% 14 bps 20.9% (8) bps Effective tax rate3 24.3% (837) bps 24.4% (1,293) bps Debt to total capitalization4 NP NP 42.2% (230) bps Return on assets5 NP NP 6.7% 330 bps
Slide 6: Walmart Inc.
Walmart Inc. (Amounts in millions) Q4 $ Δ1 % Δ1 Receivables, net $ 6,284 $ 1 0.0% Inventories 44,435 166 0.4% Accounts payable 46,973 (87) (0.2)% 1 Change versus prior year comparable period. 6
Slide 7: Walmart Inc.
Walmart Inc. (Amounts in millions) YTD $ Δ1 Operating cash flow $ 25,255 $ (2,498) Capital expenditures 10,705 361 Free cash flow2 $ 14,550 (2,859) (Amounts in millions) Q4 % Δ1 YTD % Δ1 Dividends $ 1,504 (0.4)% $ 6,049 (0.9)% Share repurchases3 888 (72.7)% 5,717 (22.8)% Total $ 2,392 (49.7)% $ 11,7
Slide 8: Walmart U.S.
Walmart U.S. (Amounts in millions) Q4 Δ1 YTD Δ1 Net sales $92,271 1.9% $341,004 2.8% Comparable sales2,3 1.9% NP 2.8% NP • Comp transactions4 1.0% NP NP NP • Comp ticket4 0.9% NP NP NP eCommerce impact3 ~210 bps NP NP NP Gross profit rate Decrease (34) bps Decrease (14) bps Operating expense rate5 I
Slide 9: Walmart U.S. - quarterly financial highlights
Walmart U.S. - quarterly financial highlights Sales • Comp sales1 increased 1.9%, with comp transactions up 1.0% and comp ticket higher by 0.9%. E-commerce sales grew 35% and contributed approximately 210 basis points to segment comp sales growth. Online grocery was a meaningful contributor to eComm
Slide 10: Walmart U.S. - quarterly merchandise highlights
Walmart U.S. - quarterly merchandise highlights Category Comp Comments Food and consumables sales trends were strong despite a headwind from lapping last year's SNAP benefit. Grocery sales on a two-year stacked basis were among the best in the past 10 years. Increased Grocery1 + low single-digit val
Slide 11: Walmart International
Walmart International Constant Constant (Amounts in millions) Reported currency1 Reported currency1 Q4 Δ2 Q4 Δ2 YTD 1 Δ2 YTD Δ2 Net sales $33,049 2.3% $33,037 2.2% $120,130 (0.6)% $124,267 2.8% Gross profit rate Decrease (72) bps NP NP Decrease (136) bps NP NP Operating expense rate3 Decrease (31) b
Slide 12: Walmart International - quarterly financial highlights
Walmart International - quarterly financial highlights Sales • Positive comp sales in six of 10 markets, including the major markets of Mexico, China, and Canada. • Concerns over Brexit in the U.K. and unrest in Chile negatively affected performance. • eCommerce contributed 12% of total segment sale
Slide 13: Walmart International - key market quarterly results
Walmart International - key market quarterly results Comp3 Gross Operating Country1,2 Net sales3 Sales Transactions Ticket profit rate3 income3 Walmex4 3.4% 0.3% 3.1% 5.0% Decrease Increase China 3.5% 0.3% 3.2% 5.4% Decrease Decrease Canada6 0.6% (2.3)% 2.9% (0.5)% Increase Increase United Kingdom5
Slide 14: Walmart International - key market highlights
Walmart International - key market highlights Walmex • Net sales increased 5.0% and comp sales increased 3.4%, led by strength in Mexico. ◦ In Mexico, comp sales increased 3.9% or 8.5% on a two-year stacked basis. ◦ Opened 81 new stores across Mexico and Central America. • Comp sales growth continue
Slide 15: Walmart International - key market highlights
Walmart International - key market highlights Canada • Net sales decreased 0.5% and comp sales increased 0.6%. ◦ Comp sales growth benefited from strength in grocery and fresh, offset by softer sales in general merchandise and apparel. ◦ The company finalized the sale of Walmart Canada Bank on April
Slide 16: Sam's Club
Sam's Club With fuel Without fuel1 With fuel Without fuel1 (Amounts in millions) Q4 Δ2 Q4 Δ2 YTD Δ2 YTD Δ2 Net sales $15,288 2.6% $13,813 1.1% $58,792 1.6% $52,792 0.9% Comparable sales3 2.2% NP 0.8% NP 1.5% NP 0.7% NP • Comp transactions NP NP 4.3% NP NP NP NP NP • Comp ticket NP NP (3.5)% NP NP NP
Slide 17: Sam's Club - quarterly financial highlights
Sam's Club - quarterly financial highlights Sales 1 • Comp sales increased 0.8% and comp transactions grew 4.3%. Tobacco negatively affected comp sales by approximately 300 basis points. • eCommerce sales increased approximately 33%. Gross profit • Gross profit rate decreased 65 basis points and 38
Slide 18: Sam's Club - quarterly category highlights
Sam's Club - quarterly category highlights Category Comp Comments Fresh / Freezer / Cooler + mid single-digit Prepared foods, fresh seafood and fresh meat performed well. Grocery and beverage + mid single-digit Snacks, soda, juice and chips performed well. Consumables + mid single-digit Broad-based
Slide 19: 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 20: Non-GAAP measures - ROI cont.
Non-GAAP measures - ROI cont. Prior to adoption of ASU 2016-02, we defined ROI as operating income plus interest income, depreciation and amortization, and rent expense for the trailing 12 months divided by average invested capital during that period. We considered average invested capital to be the
Slide 21: 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 Fiscal Years Fiscal Years Ended January Ended January (Dollars in millions) 2020 31, 2019 (Do
Slide 22: 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 $25.3 billion for the fiscal year ended January 31, 2020, which decr
Slide 23: 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 24: 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 25: 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 26: Non-GAAP measures - adjusted EPS
Non-GAAP measures - adjusted EPS Percent Percent Three Months Ended January 31, 2020 Change1 Fiscal Year Ended January 31, 20202 Change1 Diluted earnings per share: Reported EPS $ 1.45 14.2% $ 5.19 129.6% Pre-Tax Tax NCI Net Pre-Tax Tax NCI Net Adjustments: Impact Impact5,7 Impact6 Impact Impact Imp
Slide 27: Non-GAAP measures - adjusted EPS
Non-GAAP measures - adjusted EPS As previously disclosed in our fiscal year ended January 31, 2019 press release, we have calculated Adjusted EPS for the three months and fiscal year ended January 31, 2019 by adjusting EPS for the following: (1) for the fiscal year ended January 31, 2019 only, the l
Slide 28: Additional resources at stock.walmart.com
Additional resources at stock.walmart.com • Unit counts & square footage • Comparable store sales, including and excluding fuel • Revised fiscal 2019 quarterly comp transactions • Terminology 28