Slide 1: Financial presentation to accompany management transcript Q1FY18
Walmart >;< Financial presentation to accompany management transcript Q1FY18
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 for the three months ending July 31, 2017, Walmart U.S.'s comparable sales and Sam's Club's comparable sales, excluding fuel, for the 13-week period ending July 28
Slide 3: Guidance
Guidance The company's guidance for earnings per share for the second quarter excludes an estimated net benefit of approximately $0.05 from the sale of Suburbia, the company's apparel format in Mexico. U.S. Q2 FY18 EPS: Comp sales for 13-week Comp sales for 13-week $1.00 to $1.08 period, excluding f
Slide 4: Wal-Mart Stores, Inc.
Wal-Mart Stores, Inc. (Amounts in millions, except per share data) Q1 $ Δ1 % Δ1 Total revenue $117,542 $1,638 1.4% Total revenue, constant currency2 $118,750 $2,846 2.5% Net sales $116,526 $1,540 1.3% Net sales, constant currency2 $117,725 $2,739 2.4% Membership & other income $1,016 $98 10.7% Opera
Slide 5: Wal-Mart Stores, Inc.
Wal-Mart Stores, Inc. Q1 bps Δ1 Gross profit rate 24.8% 1 bps Operating expenses as a percentage of net 21.1% 18 bps sales Effective tax rate 32.6% 78 bps Debt to total capitalization2 38.7% -130 bps Return on investment3,4 15.1% -20 bps 1 Basis points change versus prior year comparable period. 2 D
Slide 6: Wal-Mart Stores, Inc.
Wal-Mart Stores, Inc. (Amounts in millions) Q1 $ Δ1 % Δ1 Receivables, net $5,252 $65 1.3% Inventories $43,361 -$1,152 -2.6% Accounts payable $41,367 $3,370 8.9% 1 Change versus prior year comparable period. 6
Slide 7: Wal-Mart Stores, Inc.
Wal-Mart Stores, Inc. (Amounts in millions) Q1 $ Δ1 Operating cash flow $5,385 -$808 Capital expenditures $1,990 -$219 Free cash flow2 $3,395 -$589 (Amounts in millions) Q1 % Δ1 Dividends $1,549 -1.5% Share repurchases3 $2,185 -20.1% Total $3,734 -13.3% 1 Change versus prior year comparable period.
Slide 8: Walmart U.S.
Walmart U.S. (Amounts in millions) Q1 Δ1 Net sales $75,436 2.9% Comparable sales2,3 1.4% 40 bps • Comp traffic 1.5% — bps • Comp ticket -0.1% 40 bps E-commerce impact3,4 ~0.8% ~60 bps Neighborhood Market ~6.2% ~-90 bps Gross profit rate Flat — bps Operating expense rate Increase 14 bps Operating inc
Slide 9: Walmart U.S. - quarterly financial highlights
Walmart U.S. - quarterly financial highlights Sales • Net sales increased 2.9%, or approximately $2.1 billion. Last year's Q1 net sales included an approximately 100 bps benefit from an extra day in February 2016 due to a leap year. • Comp sales1 increased 1.4% led by strong comp traffic of 1.5%. On
Slide 10: Walmart U.S. - quarterly merchandise highlights
Walmart U.S. - quarterly merchandise highlights Category Comp Comments Traffic in food and consumables accelerated throughout the quarter, Grocery1 + low single-digit including a strong Easter performance; market deflation in food, excluding price investments, did not impact comp sales results in Q1
Slide 11: Walmart International
Walmart International Constant (Amounts in millions) Reported currency1 Q1 Δ2 Q1 Δ2 1 Net sales $27,097 -3.5% $28,296 0.8% Gross profit rate Increase 16 bps NP NP Operating income $1,163 -0.1% $1,269 9.0% 1 See press release located at www.stock.walmart.com and reconciliations at the end of presenta
Slide 12: Walmart International - quarterly financial highlights
Walmart International - quarterly financial highlights Sales • Excluding the impact of Yihaodian1, net sales on a constant currency basis increased 2.2 percent. • Results were impacted by a later Easter than last year and one less operating day due to Leap Day in last year's results. • Continued str
Slide 13: Walmart International - key markets quarterly results
Walmart International - key markets quarterly results Comp3 Gross 1,2 Net Operating Country profit Sales Traffic Ticket sales3 3 income3 rate United Kingdom4 -2.8% -2.0% -0.8% 0.9% Decrease Decrease 3¹ Walmex5 3.7% -1.2% 4.9% 5.2% Increase Increase Canada 1.5% -0.7% 2.2% 2.7% Decrease Decrease China
Slide 14: Walmart International - key market quarterly highlights
Walmart International - key market quarterly highlights Walmex • Sales momentum continued across all countries and regions, despite the later timing of Easter, one less day in the quarter as a result of Leap Day last year, and temporary store closures due to protests related to gasoline price increa
Slide 15: Walmart International - key market quarterly highlights
Walmart International - key market quarterly highlights U.K. • Net sales increased 0.9 percent and comp sales declined 2.8 percent. ◦ When normalizing for Leap Day last year and a later Easter, we continued to see sequential improvement in comp sales. • We are beginning to see improved customer traf
Slide 16: Sam's Club
Sam's Club With fuel Without fuel1 (Amounts in millions) Q1 Δ2 Q1 Δ2 Net sales $13,993 2.8% $12,909 1.4% Comparable sales3 3.0% 490 bps 1.6% 150 bps • Comp traffic NP NP 1.1% 130 bps • Comp ticket NP NP 0.5% 20 bps E-commerce impact4 NP NP ~0.8% ~20 bps Gross profit rate Decrease -36 bps Decrease -2
Slide 17: Sam's Club - quarterly financial highlights
Sam's Club - quarterly financial highlights Sales • Comp sales1 for the period increased 1.6%, led by growth in comp traffic of 1.1%. • Market inflation positively impacted comp sales by approximately 80 basis points, primarily in tobacco. • E-commerce sales contributed approximately 80 basis points
Slide 18: Sam's Club - quarterly category highlights
Sam's Club - quarterly category highlights Category Comp Comments Produce, bakery, cooler and seafood delivered positive results. Deflation continued in eggs, Fresh / Freezer / Cooler slightly negative and assortment changes in frozen foods negatively impacted the category. Water, sports drinks, sod
Slide 19: Third-party FCPA- and compliance-related expenses
Third-party FCPA- and compliance-related expenses Q1 (Amounts in millions) FY18 FY17 Ongoing inquiries and $13 $21 investigations Global compliance program and 3 4 organizational enhancements Total $16 $25 • In fiscal year 2018, we expect our third party FCPA- and compliance-related expenses to rang
Slide 20: Non-GAAP measures - ROI
Non-GAAP measures - ROI We include Return on Assets ("ROA"), which is calculated in accordance with generally accepted accounting principles in the U.S. ("GAAP") as well as Return on Investment ("ROI") as measures to assess returns on assets. Management believes ROI is a meaningful measure to share
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, the most comparable GAAP financial measure, is as follows: Wal-Mart Stores, Inc. Return on Assets and Return on Investment Trailing Twelve Months Trailing Twelve Months Ended E
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 $5.4 billion and $6.2 billion for the three months ended April 30, 2
Slide 23: Non-GAAP measures - constant currency
Non-GAAP measures - constant currency The term "currency exchange rates" refers to the currency exchange rates we use to convert the operating results for all countries where the functional currency is not the U.S. dollar ("non-USD entities") into U.S. dollars. We calculate the effect of changes in
Slide 24: Non-GAAP measures - fuel impact
Non-GAAP measures - fuel impact The net sales and operating income of Sam's Club for the three months ended April 30, 2017, the percentage changes in those financial measures from the respective comparable prior year period, comparable sales of Sam's Club and Walmart U.S. for the 13-week period ende
Slide 25: Non-GAAP measures - fuel impact cont.
Non-GAAP measures - fuel impact cont. The table below reflects the calculation of the fuel impact for net sales and operating income for the three months ended April 30, 2017 and 2016. Three Months Ended April 30, (Dollars in millions) 2017 2016 Percent Sam's Club Net Sales: As Reported $ 13,993 $ 1
Slide 26: Additional resources at stock.walmart.com
Additional resources at stock.walmart.com • Unit counts & square footage • Comparable store sales • Terminology • Fiscal year 2018 earnings dates 26