Slide 1: Financial presentation to accompany management commentary Q1 FY2021
Financial presentation to accompany management commentary Q1 FY2021
Slide 2: Safe harbor and non-GAAP measures
Safe harbor and non-GAAP measures This presentation 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 Securities Exchange Act of 1934, as amen
Slide 3: Supporting Associates, Families, Suppliers, and Communities through COVID-19
Supporting Associates, Families, Suppliers, and Communities through COVID-19 Actions for Associates Actions for Customers • Announced special cash bonus to all hourly associates in the U.S. totaling approximately $755 million. • Reduced store operating hours to enable enhanced cleaning and sanitizin
Slide 4: Walmart Inc. consolidated results
Walmart Inc. (Amounts in millions, except per share data) Q1 $ Δ1 % Δ1 Total revenue $ 134,622 $ 10,697 8.6 % Total revenue, constant currency2 135,917 11,992 9.7 % Net sales 133,672 10,723 8.7 % Net sales, constant currency2 134,926 11,977 9.7 % Membership & other income 950 (26) (2.7)% Operating i
Slide 5: Walmart Inc. margins and returns
Walmart Inc. Q1 bps Δ1 Gross profit rate 23.7% (66) bps Operating expenses as a percentage of net sales 20.5% (62) bps Effective tax rate 24.5% 24 bps Debt to total capitalization2 46.0% 10 bps Return on assets3 6.6% 260 bps Return on investment3 13.4% (110) bps 1 Basis points change versus prior ye
Slide 6: Walmart Inc. receivables, inventories, payables
Walmart Inc. (Amounts in millions) Q1 $ Δ1 % Δ1 Receivables, net $ 5,029 $ (313) (5.9)% Inventories 41,217 (3,534) (7.9)% Accounts payable 44,096 (1,014) (2.2)% 1 Change versus prior year comparable period. 6
Slide 7: Cash flow and capital returns
Walmart Inc. (Amounts in millions) YTD $ Δ1 Operating cash flow $ 7,017 $ 3,454 Capital expenditures 1,752 (453) Free cash flow2 $ 5,265 3,907 (Amounts in millions) Q1 % Δ1 Dividends $ 1,529 0.6% Share repurchases3 723 (66.1)% Total $ 2,252 (38.4)% 1 Change versus prior year comparable period. 2 See
Slide 8: Walmart U.S.
Walmart U.S. (Amounts in millions) Q1 Δ1 Net sales $88,743 10.5% Comparable sales2 10.0% NP • Comp transactions -5.6% NP • Comp average ticket 16.5% NP eCommerce impact2 ~390 bps NP Gross profit rate Decrease (113) bps Operating expense rate Decrease (89) bps Operating income $4,302 3.9% 1 Change ve
Slide 9: Walmart U.S. - quarterly financial highlights
Walmart U.S. - quarterly financial highlights Q1 results were significantly affected by the COVID-19 health crisis including higher incremental sales and related costs. Sales • Comp sales1 increased 10.0% with comp ticket higher by 16.5% while comp transactions declined 5.6%. As a result of the heal
Slide 10: Walmart U.S. - quarterly merchandise highlights
Walmart U.S. - quarterly merchandise highlights Category Comp Comments Food and consumables sales were strong and grocery pickup and 1 delivery reached all-time high sales volumes. Food strength was Grocery + low double-digit broad-based across categories while consumables' sales were led by paper g
Slide 11: Walmart International
Walmart International Constant (Amounts in millions) Reported currency1 Q1 1 Δ2 Q1 Δ2 Net sales $29,766 3.4% $31,020 7.8% Gross profit rate Increase 10 bps NP NP Operating expense rate Decrease (12) bps NP NP Operating income $806 9.2% $853 15.6% 1 See press release located at www.stock.walmart.com
Slide 12: Walmart International - quarterly financial highlights
Walmart International - quarterly financial highlights Sales • Net sales increased 3.4% on a reported basis and increased 7.8% in constant currency. Comp sales were positive in nine of 10 markets, including the major markets of Mexico, China, Canada and the U.K. Sales were positively affected by a g
Slide 13: International - key market quarterly results
Walmart International - key market quarterly results Comp3 Gross Operating Country1,2 Net sales3 Sales Transactions Average profit rate3 income3 Ticket Walmex4 9.8% 1.3% 8.5% 11.6% Flat Increase China 11.7% (13.5)% 29.2% 13.3% Decrease Decrease Canada 8.5% (13.8)% 25.8% 7.6% Decrease Increase United
Slide 14: International - key market highlights
Walmart International - key market highlights Walmex • Net sales increased 11.6% and comp sales increased 9.8%. In Mexico, comp sales increased 10.8%. ◦ Sales were positively affected by a greater level of stock-up activity in response to COVID-19. Higher growth in food and consumables was partially
Slide 15: International - key market highlights
Walmart International - key market highlights Canada • Net sales increased 7.6% and comp sales increased 8.5%. ◦ Sales were positively affected by a greater level of stock-up activity in response to COVID-19. Higher growth in food and consumables was partially offset by weaker demand for general mer
Slide 16: Sam's Club
Sam's Club With fuel Without fuel1 (Amounts in millions) Q1 Δ2 Q1 Δ2 Net sales $15,163 9.6% $14,069 13.0% Comparable sales3 8.5% NP 12.0% NP • Comp transactions NP NP 11.9% NP • Comp average ticket NP NP 0.1% NP eCommerce impact NP NP ~170 bps NP Gross profit rate Increase 20 bps Decrease (79) bps M
Slide 17: Sam's Club - quarterly financial highlights
Sam's Club - quarterly financial highlights Sales • Comp sales1 increased 12.0% and comp transactions grew 11.9%. Tobacco negatively affected comp sales by approximately 410 basis points. • February and March had strong transactions driven by COVID-19 stock-up trips. In April, transactions slowed as
Slide 18: Sam's Club - quarterly category highlights
Sam's Club - quarterly category highlights Category Comp Comments Fresh / Freezer / Cooler + low double digit Meat, deli and frozen foods performed well. Grocery and beverage + low double digit Canned protein, pasta and coffee/breakfast performed well. Consumables + low double digit Broad-based stre
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. 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 April 30, Ended April 30, (Dollars in mil
Slide 21: 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 $7.0 billion for the three months ended April 30, 2020, which increa
Slide 22: 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 23: 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 24: Non-GAAP measures - adjusted EPS
Non-GAAP measures - adjusted EPS Percent Three Months Ended April 30, 2020 Change1 Diluted earnings per share: Reported EPS $ 1.40 5.3% Adjustments: Pre-Tax Impact Tax Impact2 Net Impact Unrealized (gains) and losses on JD.com investment $ (0.27) $ 0.05 $ (0.22) Adjusted EPS $ 1.18 4.4% 1 Change ver
Slide 25: Non-GAAP measures - adjusted EPS
Non-GAAP measures - adjusted EPS As previously disclosed in our first quarter ended April 30, 2019 press release, we have calculated Adjusted EPS for the three months ended April 30, 2019 by adjusting EPS for the unrealized gains and losses on our JD.com investment. Three Months Ended April 30, 2019
Slide 26: Additional resources at stock.walmart.com
Additional resources at stock.walmart.com • Unit counts & square footage • Comparable store sales, including and excluding fuel • Terminology 26