Slide 1: Financial presentation to accompany management commentary Q1 FY24
Financial presentation to accompany management commentary Q1 FY24
Slide 2: Guidance
Guidance Metric Q2 The following guidance reflects the Company’s Consolidated net sales (cc) Increase approximately 4.0% expectations for the second quarter and fiscal year 2024 and is provided on a non-GAAP Consolidated operating income (cc) Decline approximately 2.0% basis as the Company cannot pr
Slide 3: Total Revenue
Total Revenue 1 Total Revenue (cc) $152.5 billion, up +7.7% • Total revenue reached $152.3 billion $164 with strength across all operating segments $152.9 $152.8 $152.3 • Negatively affected by $0.2 billion from currency fluctuations $141.6 • eCommerce net sales up 26% globally led by omnichannel, i
Slide 4: Gross Profit Rate
Gross Profit Rate Gross Profit Rate -18bps to 23.7% 23.8% 23.7% 23.7% • Gross profit rate declined 23.5% primarily due to mix of sales globally, partially offset by normalization of supply chain and freight costs in the U.S., 22.9% and favorable business mix from higher margin initiatives • Sales mi
Slide 5: Operating Expenses
Operating Expenses As a percentage of net sales, -58bps to 20.4% 22.8% 21.0% 20.3% 20.4% 19.9% • Leverage driven by strong net sales growth and operating discipline Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Y/Y Change +45bps -45bps +144bps -44bps -58bps
Slide 6: Operating Income
Operating Income Operating Income Adjusted Operating Income 1 6.9 6.9 6.4 6.2 6.2 6.0 • Operating income up 17.3% relative 5.6 5.3 to 7.6% growth in net sales 5.3 • Net income margin decreased 1 ~40bps and EBITDA margin increased ~30bps over last year • Q3 FY23 and Q4 FY23 negatively affected by dis
Slide 7: EPS
EPS 1 Adjusted EPS of $1.47, up 13.1% 1 EPS Adjusted EPS $2.32 $1.77 $1.71 $1.88 $1.50 $1.47 • Adjusted EPS excludes the effects $1.30 of $0.85 from net losses on equity and other investments $0.74 $0.62 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 $(0.66) Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 PY $1.69
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 $28.8 $12.0 • Operating cash flow increased $15.7 primarily due to moderated levels $3.6 of inventory purchases and timing $9.2 $1.7 of certain payments $4.6 $0.2
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. $3.3 $3.0 $2.4 • Share repurchases during quarter totaled $686 million representing 4.8 million shares at an average price of $1.2 $143.46 per sha
Slide 10: Returns
Returns Return on Assets (ROA) Return on Investment (ROI) 1 5.8% 13.9% • ROI declined on a trailing 12-month basis 13.8% 5.5% as a result of discrete charges for the opioid legal settlement frameworks in Q3 FY23 and business reorganization and 4.6% 4.5% restructurings in Q4 FY23 12.8% 12.7% 12.7% •
Slide 11: Walmart U.S. Comp Sales
1 Walmart U.S. Comp Sales Net Sales +7.2%, eCommerce +27% • Comp sales +7.4% with strength in 8.2% 8.3% grocery and health & wellness, offset by softness in general merchandise 7.4% • Monthly comp sales growth 6.5% moderated as the quarter progressed • Strength in food categories, private brand sale
Slide 12: Walmart U.S.
Gross profit rate -41 bps Walmart U.S. • Unfavorable product mix shifts as grocery and health & wellness, which have a lower margin rate than general merchandise, increased nearly 360 bps as a portion of sales mix • Partly offset by lower supply chain and freight costs Store Remodels: 96 Operating e
Slide 13: Walmart U.S. Merchandise category performance details
Walmart U.S. Merchandise category performance details Category Comp Comments • Strength in food (+LDD) reflected continued market share gains (according to Nielsen), including from higher income households, and growth in private brand penetration (+110bps) Grocery + low double-digit • Food inflation
Slide 14: Walmart International Net Sales
Walmart International Net Sales 1 Net Sales (cc) $26.8 billion, +12.9% $27.6 1 $26.6 • Strong sales growth (cc) led by double digit growth in China, Walmex $25.3 and Flipkart $24.4 $23.8 • eCommerce sales grew 25% with particular strength in store-fulfilled and advertising Net sales • Sales negative
Slide 15: Walmart International
Walmart Gross profit rate +12 bps International • Increase primarily due to lapping higher markdowns from slower sales growth last year • Partially offset by ongoing format and channel mix changes Strong local businesses Operating expenses as a percentage of net sales powered by Walmart -111 bps • L
Slide 16: Walmex
1,2 Walmex Net Sales (cc): $10.1 billion, +10.6% Sales • Double-digit growth with continued strength in food and consumables • In Mexico, comp sales grew 8.7% driven by Sam’s Club and Bodega 11.5% 11.7% 10.6% • Opened more than 120 new stores in 9.2% 9.3% the past twelve months, including 12 new sto
Slide 17: Canada
1 Canada Net Sales (cc): $5.5 billion, +6.7% Sales • Continued momentum in food and consumables with softness in GM • Continued strength in private brands 10.3% which grew over 7% year over year Gross profit rate Relatively flat 7.7% • Primarily from efficiencies in logistics 6.3% 5.7% and lower imp
Slide 18: China
1 China Net Sales (cc): $5.3 billion, +28.3% Sales • Strength in both formats and eCommerce • Post-covid reopening helped fuel a strong Chinese New Year season and 25.5% sustained momentum through the entire quarter • Members Mark private brand was particularly strong, growing 46% 14.1% 13.3% • eCom
Slide 19: Sam's Club Comp Sales
1 Sam’s Club Comp Sales Net sales with fuel +4.5%, Net sales without fuel +7.4%, eCommerce +19% 17.0% 17.5% Comparable sales 12.7% 11.9%12.2% • Strong comp sales driven by solid 10.2% 10.0% increases in ticket and transactions as well 9.5% as unit growth 7.0% ◦ Ticket without fuel +4.0% 4.2% ◦ Trans
Slide 20: Sam's Club
Gross profit rate +36 bps, without fuel +26 bps Sam’s Club • Rate increase primarily due to lapping elevated supply chain costs last year • LIFO expense $48M Celebrating 40 years of Operating expenses as a percentage of net sales +47 bps, without fuel +23 bps Member Obsession • Lower fuel sales nega
Slide 21: Sam's Club Category comparable sales
Sam’s Club Category comparable sales Category Comp Comments • Cooler, prepared foods, produce & floral, and bakery Fresh / Freezer / Cooler + high single-digit performed well Grocery and Beverage + low double-digit • Drinks, dry grocery, and snacks showed strength • Paper goods, tabletop & bags, lau
Slide 22: 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 23: 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 24: 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 Apr 30, Jul 31, Oct 31, Jan 31, Apr 30, (Dollars in millions) 2022 2022 2022 2023 2023 Numerator
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 INVESTMENT Trailing Twelve Months Ending Apr 30, Jul 31, Oct 31, Jan 31, Apr 30, (Dollars in millions) 2022 2022 2022 2023 2023 Numera
Slide 26: Non-GAAP measures – free cash flow
Non-GAAP measures – free cash flow We define free cash flow as net cash provided by or used in operating activities in a period minus payments for property and equipment made in that period. Net cash provided by operating activities was $4.6 billion for the three months ended April 30, 2023, which r
Slide 27: 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. Year to Date Period
Slide 28: 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 29: 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) Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Total Revenue:
Slide 30: 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 31: 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 32: Non-GAAP measures – adjusted EPS (cont.)
Non-GAAP measures – adjusted EPS (cont.) Percent Three Months Ended Jan 31, 2023 Three Months Ended Jan 31, 2022 Change Diluted earnings per share: Reported EPS $2.32 $1.28 +81.3% Pre-Tax Tax 1,2 NCI Pre-Tax Tax 1 NCI Adjustments: Impact Impact Impact3 Net Impact Impact Impact Impact3 Net Impact Unr
Slide 33: Non-GAAP measures – adjusted EPS (cont.)
Non-GAAP measures – adjusted EPS (cont.) Percent Three Months Ended Jul 31, 2022 Three Months Ended Jul 31, 2021 Change Diluted earnings per share: Reported EPS $1.88 $1.52 +23.7% Pre-Tax Tax 1,2 NCI Pre-Tax Tax 1 NCI Adjustments: Impact Impact Impact3 Net Impact Impact Impact Impact Net Impact Unre
Slide 34: Non-GAAP measures - EBITDA and EBITDA Margin
Non-GAAP measures - EBITDA and EBITDA Margin We include net income and net income margin, which are calculated in accordance with U.S. generally accepted accounting principle as well as EBITDA and EBITDA margin to provide meaningful information about our operational efficiency compared with our comp
Slide 35: Non-GAAP measures – EBITDA & EBITDA margin
Non-GAAP measures – EBITDA & EBITDA margin The calculation of net income margin and EBITDA margin, along with a reconciliation of EBITDA margin to the calculation of net income margin, is as follows: Three Months Ended Q1 FY24 Q1 FY23 (Amounts in millions) 2023 2022 Consolidated net income attributa