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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
________________________
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 or 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (date of earliest event reported)
February 20, 2024
Walmart Inc.
(Exact name of registrant as specified in its charter)
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DE | 001-06991 | 71-0415188 |
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) |
702 S.W. 8th Street
Bentonville, AR 72716-0215
(Address of Principal Executive Offices) (Zip code)
Registrant's telephone number, including area code
(479) 273-4000
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
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| Title of each class | | Trading Symbol(s) | | Name of each exchange on which registered |
| Common Stock, par value $0.10 per share | | WMT | | New York Stock Exchange |
| 2.550% Notes due 2026 | | WMT26 | | New York Stock Exchange |
| 1.050% Notes due 2026 | | WMT26A | | New York Stock Exchange |
| 1.500% Notes due 2028 | | WMT28C | | New York Stock Exchange |
| 4.875% Notes due 2029 | | WMT29B | | New York Stock Exchange |
| 5.750% Notes due 2030 | | WMT30B | | New York Stock Exchange |
| 1.800% Notes due 2031 | | WMT31A | | New York Stock Exchange |
| 5.625% Notes due 2034 | | WMT34 | | New York Stock Exchange |
| 5.250% Notes due 2035 | | WMT35A | | New York Stock Exchange |
| 4.875% Notes due 2039 | | WMT39 | | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
In accordance with Item 2.02 of Form 8-K of the Securities and Exchange Commission (the "SEC"), Walmart Inc., a Delaware corporation (the "Company"), is furnishing to the SEC a press release that the Company will issue on February 20, 2024 (the "Press Release") and a financial presentation that will be first posted by the Company on the Company’s website at http://stock.walmart.com on February 20, 2024 (the "Financial Presentation"). The Press Release and the Financial Presentation will disclose information regarding the Company's results of operations and cash flows for the three months and fiscal year ended January 31, 2024, and the Company's financial condition as of January 31, 2024.
In accordance with General Instruction B.2 of Form 8-K, the information in this Item 2.02 of this Current Report on Form 8-K, including Exhibits 99.1 and 99.2 hereto, which are furnished herewith pursuant to and relate to this Item 2.02, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise be subject to the liabilities of Section 18 of the Exchange Act. The information in this Item 2.02 of this Current Report on Form 8-K and Exhibits 99.1 and 99.2 hereto shall not be incorporated by reference into any filing or other document filed by the Company with the SEC pursuant to the Securities Act of 1933, as amended, the rules and regulations of the SEC thereunder, the Exchange Act, or the rules and regulations of the SEC thereunder except as shall be expressly set forth by specific reference in such filing or document.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
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| The following documents are furnished as exhibits to this Current Report on Form 8-K: |
| 99.1 | |
| 99.2 | |
| Exhibit 104 | Cover Page Interactive Data File (formatted as Inline XBRL). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: February 20, 2024
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| WALMART INC. |
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| By: | /s/ John David Rainey |
| Name: | John David Rainey |
| Title: | Executive Vice President and
Chief Financial Officer |
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| Walmart Reports
Fourth Quarter Results |
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| •Strong revenue growth of 5.7% with operating income growing faster at 30.4%; adjusted operating income up 13.2%1 •eCommerce up 23% globally, surpassing $100 billion for the year •GAAP EPS of $2.03; Adjusted EPS of $1.801 •Company provides outlook for Q1 and FY25 •Company raises annual dividend 9% |
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| | | | “ | Our team delivered a great quarter, finishing off a strong year. We crossed $100 billion in eCommerce sales and drove share gains as our customer experience metrics improved, even during our highest volume days leading up to the holidays. We’re proud of the team and excited about building on our momentum as we work to bring prices down for our customers and members.”
Doug McMillon President and CEO, Walmart | |
| BENTONVILLE, Ark., Feb 20, 2024 – Walmart Inc. (NYSE: WMT) announces fourth quarter results, including strong revenue growth of 5.7%. The Company’s omnichannel model continues to resonate with customers helping to deliver strong growth, including comp sales of 4.0%3 for Walmart U.S. Looking ahead, the company issues guidance for FY25, including growth in net sales in constant currency (“cc”)1 of 3% to 4% and operating income of 4% to 6%. | | | |
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| Fourth Quarter Highlights | | | | |
| •Consolidated revenue of $173.4 billion, up 5.7%, or 4.9% (cc)1 •Consolidated gross margin rate up 39bps due to improvement at Walmart U.S. •Consolidated operating income up $1.7 billion, or 30.4%; adjusted operating income up 13.2%1 , positively affected by currency and LIFO of 2.3% and 1.0%, respectively •Global eCommerce sales grew 23% •Global advertising business2 grew approximately 33%, including 22% for Walmart Connect in the U.S. •Adjusted EPS1 of $1.80 excludes the effect, net of tax, from a net gain of $0.23 on equity and other investments •Walmart agrees to buy VIZIO HOLDING CORP. to further accelerate Walmart Connect in the U.S. | | | | |
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| Full Year Highlights | | | |
| •Consolidated revenue of $648.1 billion, up 6.0%, or 5.5% (cc)1
•Global advertising business2 grew approximately 28% to reach $3.4 billion
•Consolidated operating income up $6.6 billion, or 32.2%; adjusted operating income up 10.2%1, growing faster than sales
•ROA at 6.6%; ROI at 15.0%1, up 230 bps
•GAAP EPS of $5.74; Adjusted EPS of $6.651 | | | |
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1 See additional information at the end of the release regarding non-GAAP financial measures. 2 Our global advertising business is recorded in either net sales or as a reduction to cost of sales, depending on the nature of the advertising arrangement. 3 Comp sales for the 13-week period ended January 26th, 2024 compared to the 13-week period ended January 27th, 2023, and excludes fuel. See Supplemental Financial Information for additional information.
“cc” - constant currency |
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Key Financial Metrics
Dollars in billions, except per share data. Dollar and percentage changes may not recalculate due to rounding. Charts may not be to scale. | |
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Balance Sheet and Liquidity |
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•Cash and cash equivalents of $9.9 billion |
•Total debt of $46.9 billion2 |
•Operating cash flow for FY’24 of $35.7 billion, an increase of $6.9 billion |
•Free cash flow for FY’24 of $15.1 billion1, an increase of $3.1 billion |
•Repurchased 18.2 million shares3 for FY’24, or $2.8 billion |
•Inventory of $54.9 billion, a decrease of $1.7 billion |
1 See additional information at the end of this release regarding non-GAAP financial measures. 2 Debt includes short-term borrowings, long-term debt due within one year, finance lease obligations due within one year, long-term debt and long-term finance lease obligations. 3 $16.5 billion remaining of $20 billion authorization approved in November 2022. NM = Not Meaningful |
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| Business Highlights and Strategic Initiatives Dollars in billions, except as noted. Dollar and percentage changes may not recalculate due to rounding. | |
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| Walmart U.S. | FY’24Q4 | FY’23Q4 | Change | | FY’24 | FY’23 | Change |
| Net sales | $117.6 | $113.7 | $3.9 | 3.4% | | $441.8 | $420.6 | $21.3 | 5.1% |
Comp sales (ex. fuel)2 | 4.0% | 8.3% | NP | NP | | 5.6% | 6.6% | NP | NP |
| Transactions | 4.3% | 1.8% | NP | NP | | NP | NP | NP | NP |
| Average Ticket | -0.3% | 6.3% | NP | NP | | NP | NP | NP | NP |
| eCommerce contribution to comp | ~240 bps | ~140 bps | NP | NP | | NP | NP | NP | NP |
| Operating income | $6.1 | $5.4 | $0.7 | 12.9% | | $22.2 | $20.6 | $1.5 | 7.4% |
Walmart U.S.
•Delivered strong growth in both in-store and digital transaction counts; unit volumes increased
•Share gains in grocery and general merchandise, primarily among higher-income households
•Growth in eCommerce of 17%, led by strength in pickup & delivery
•Walmart Connect advertising sales grew 22%
•Sales strength led by grocery and health & wellness, while general merchandise sales declined modestly
•Gross profit rate increased 64 bps; operating expense deleverage of 30 bps
•Inventory declined 4.5% with higher in-stock levels
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| Walmart International | FY’24Q4 | FY’23Q4 | Change | | FY’24 | FY’23 | Change |
| Net sales | $32.4 | $27.6 | $4.8 | 17.6% | | $114.6 | $101.0 | $13.7 | 13.5% |
Net sales cc1 | $31.2 | $27.6 | $3.6 | 13.0% | | $111.7 | $101.0 | $10.7 | 10.6% |
| Operating income | $1.4 | $0.3 | $1.1 | 397.6% | | $4.9 | $3.0 | $1.9 | 65.6% |
Operating income cc1 | $1.3 | $0.3 | $1.0 | 347.1% | | $4.4 | $3.0 | $1.4 | 48.5% |
Adjusted operating income cc1 | $1.3 | $1.1 | $0.2 | 13.5% | | $4.4 | $3.8 | $0.6 | 15.4% |
Walmart International
•Growth in net sales cc1 of 13.0% led by Flipkart, Walmex, and China, helped by strong growth of festive events
•eCommerce sales increased 44%, led by marketplace and omnichannel offerings, penetration up across markets
•Advertising3 business grew 76%, led by Flipkart and Walmex
•Timing of Flipkart’s The Big Billion Days positively affected growth for Q4
•Adjusted operating income cc1 up 13.5%, growing ahead of sales with strength across markets
1 See additional information at the end of this release regarding non-GAAP financial measures.
2 Comp sales for the 13-week and 52-week periods ended January 26th, 2024 compared to the 13-week and 52-week periods ended January 27th, 2023, and excludes fuel. See Supplemental Financial Information for additional information.
3 Our global advertising business is recorded in either net sales or as a reduction to cost of sales, depending on the nature of the advertising arrangement.
NP - Not provided
cc - constant currency
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| Sam’s Club U.S. | FY’24Q4 | FY’23Q4 | Change | | FY’24 | FY’23 | Change |
| Net sales | $21.9 | $21.4 | $0.4 | 2.0% | | $86.2 | $84.3 | $1.8 | 2.2% |
| Net sales (ex. fuel) | $19.4 | $18.8 | $0.6 | 3.3% | | $75.1 | $71.7 | $3.4 | 4.7% |
Comp sales (ex. fuel)1 | 3.1% | 12.2% | NP | NP | | 4.8% | 10.5% | NP | NP |
| Transactions | 3.6% | 6.7% | NP | NP | | NP | NP | NP | NP |
| Average Ticket | -0.4% | 5.2% | NP | NP | | NP | NP | NP | NP |
| eCommerce contribution to comp | ~190 bps | ~120 bps | NP | NP | | NP | NP | NP | NP |
| Operating income | $0.6 | $0.5 | $0.1 | 20.4% | | $2.2 | $2.0 | $0.2 | 11.6% |
Sam’s Club U.S.
•Solid comp sales, led by food and consumables as well as increases in transactions and unit volumes
•Gained dollar and unit market share in grocery
•Growth in eCommerce sales of 17% led by delivery and curbside
•Strong growth in membership income, up 10.0%, with record total membership and Plus penetration at quarter end
•Advertising business2 up 11% with record number of advertisers investing with MAP
1 Comp sales for the 13-week and 52-week periods ended January 26th, 2024 compared to the 13-week and 52-week periods ended January 27th, 2023, and excludes fuel. See Supplemental Financial Information for additional information.
2 Our global advertising business is recorded in either net sales or as a reduction to cost of sales, depending on the nature of the advertising arrangement.
NP - Not provided
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| The following guidance reflects the Company’s expectations for the first quarter and fiscal year 2025 and is provided on a non-GAAP basis as the Company cannot predict certain elements that are included in reported GAAP results, such as the changes in fair value of the Company’s equity and other investments. Growth rates reflect an adjusted basis for prior year results. Additionally, the Company’s guidance assumes a generally stable consumer and continued pressure from its mix of products and formats globally. The Company’s fiscal year guidance is based on the following FY24 figures: Net sales: $642.6 billion, adjusted operating income1: $27.1 billion, and adjusted EPS1: $6.65. | |
| A | | |
| 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 of the close of business on February 22, 2024 will receive two additional shares of common stock, to be distributed after the close of trading on February 23, 2024. For additional information, refer to our Report on Form 8-K filed with the SEC dated January 31, 2024. | |
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| First Quarter | | |
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| Metric | Q1 | |
| Consolidated net sales (cc) | Increase 4.0% to 5.0%, leap year estimated to benefit approximately 100bps | |
| Consolidated operating income (cc) | Increase 3.0% to 4.5% | |
| Adjusted EPS | $1.48 to $1.56 pre-split; $0.49 to $0.52 post-split | |
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| Fiscal Year 2025 | | |
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| Metric | FY 2025 | |
| Consolidated net sales (cc) | Increase 3.0% to 4.0% | |
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| Consolidated operating income (cc) | Increase 4.0% to 6.0% | |
| Interest, net | Increase approximately $100M to $200M | |
| Effective tax rate | Approximately 25.0% to 26.0% | |
| Non-controlling interest | Relatively flat | |
| Adjusted EPS | $6.70 to $7.12 pre-split; $2.23 to $2.37 post-split | |
| Capital expenditures | Approximately 3.0% to 3.5% of net sales | |
| 1 See additional information at the end of this release regarding non-GAPP financial measures. cc - constant currency | |
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About Walmart Walmart Inc. (NYSE: WMT) is a people-led, tech-powered omnichannel retailer helping people save money and live better - anytime and anywhere - in stores, online, and through their mobile devices. Each week, approximately 255 million customers and members visit more than 10,500 stores and numerous eCommerce websites in 19 countries. With fiscal year 2024 revenue of $648 billion, Walmart employs approximately 2.1 million associates worldwide. Walmart continues to be a leader in sustainability, corporate philanthropy, and employment opportunity. Additional information about Walmart can be found by visiting corporate.walmart.com, on Facebook at facebook.com/walmart, on X (formerly known as Twitter) at twitter.com/walmart, and on LinkedIn at linkedin.com/company/walmart.
Investor Relations contact: Steph Wissink – ir@walmart.com Media Relations contact: Kasey Anderson – (800) 331-0085 |
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| Forward-Looking Statements | |
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| This release and related management commentary contains statements or may include or may incorporate by reference Walmart management’s guidance regarding adjusted earnings per share, consolidated net sales, consolidated operating income and consolidated adjusted operating income, consolidated operating expense, net interest expenses, non-controlling interest, capital expenditures, share repurchases, Walmart’s effective tax rate for the fiscal year ending January 31, 2025, and comparable sales, among other items. Walmart believes such statements may be deemed to be "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Act") and are intended to enjoy the protection of the safe harbor for forward-looking statements provided by the Act as well as protections afforded by other federal securities laws. Assumptions on which such forward-looking statements are based are also forward-looking statements. Such forward-looking statements are not statements of historical facts, but instead express our estimates or expectations for our consolidated, or one of our segment's or business’, economic performance or results of operations for future periods or as of future dates or events or developments that may occur in the future or discuss our plans, objectives or goals. Our actual results may differ materially from those expressed in or implied by any of these forward-looking statements as a result of changes in circumstances, assumptions not being realized or other risks, uncertainties and factors including: capital markets and business conditions; trends and events around the world and in the markets in which we operate; currency exchange rate fluctuations, changes in market interest rates and market levels of wages; changes in the size of various markets, including eCommerce markets; unemployment levels; inflation or deflation, generally and in particular product categories; consumer confidence, disposable income, credit availability, spending levels, shopping patterns, debt levels and demand for certain merchandise; the effectiveness of the implementation and operation of our strategies, plans, programs and initiatives; unexpected changes in our objectives and plans; the impact of acquisitions, investments, divestitures, and other strategic decisions; our ability to successfully integrate acquired businesses; changes in the trading prices or fair value of certain equity investments we hold; initiatives of competitors, competitors' entry into and expansion in our markets, and competitive pressures; customer traffic and average transactions in our stores and clubs and on our eCommerce websites; the mix of merchandise we sell, the cost of goods we sell and the shrinkage we experience; our gross profit margins; the financial performance of Walmart and each of its segments, including the amounts of our cash flow during various periods; the amount of our net sales and operating expenses denominated in the U.S. dollar and various foreign currencies; commodity prices and the price of gasoline and diesel fuel; challenges with our supply chain, including disruptions and issues relating to inventory management; disruptions in seasonal buying patterns; the availability of goods from suppliers and the cost of goods acquired from suppliers; our ability to respond to changing trends in consumer shopping habits; consumer acceptance of and response to our stores, clubs, eCommerce platforms, programs, merchandise offerings and delivery methods; cyber security events affecting us and related costs and impact to the business; developments in, outcomes of, and costs incurred in legal or regulatory proceedings to which we are a party or are subject, and the liabilities, obligations and expenses, if any, that we may incur in connection therewith; casualty and accident related costs and insurance costs; the turnover in our workforce and labor costs, including healthcare and other benefit costs; our effective tax rate and the factors affecting our effective tax rate, including assessments of certain tax contingencies, valuation allowances, changes in law, administrative audit outcomes, impact of discrete items and the mix of earnings between the U.S. and Walmart's international operations; changes in existing tax, labor and other laws and regulations and changes in tax rates including the enactment of laws and the adoption and interpretation of administrative rules and regulations; the imposition of new taxes on imports, new tariffs and changes in existing tariff rates; the imposition of new trade restrictions and changes in existing trade restrictions; adoption or creation of new, and modification of existing, governmental policies, programs, initiatives and actions in the markets in which Walmart operates and elsewhere and actions with respect to such policies, programs and initiatives; changes in accounting estimates or judgments; the level of public assistance payments; natural disasters, changes in climate, geopolitical events, global health epidemics or pandemics (such as the COVID-19 pandemic) and catastrophic events; and changes in generally accepted accounting principles in the United States.
Our most recent annual report on Form 10-K and subsequent quarterly reports on Form 10-Q filed with the SEC discuss other risks and factors that could cause actual results to differ materially from those expressed or implied by any forward-looking statement in the release and related management commentary. We urge you to consider all of the risks, uncertainties and factors identified above or discussed in such reports carefully in evaluating the forward-looking statements in this release. Walmart cannot assure you that the results reflected in or implied by any forward-looking statement will be realized or, even if substantially realized, that those results will have the forecasted or expected consequences and effects for or on our operations or financial performance. The forward-looking statements made today are as of the date of this release. Walmart undertakes no obligation to update these forward-looking statements to reflect subsequent events or circumstances. | |
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| Walmart Inc. Condensed Consolidated Statements of Income (Unaudited) | |
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| | Three Months Ended | | Fiscal Year Ended |
| | January 31, | | January 31, |
| (Amounts in millions, except per share data) | | 2024 | | 2023 | | Percent Change | | 2024 | | 2023 | | Percent Change |
| Revenues: | | | | | | | | | | | | |
| Net sales | | $ | 171,914 | | | $ | 162,743 | | | 5.6 | % | | $ | 642,637 | | | $ | 605,881 | | | 6.1 | % |
| Membership and other income | | 1,474 | | | 1,305 | | | 13.0 | % | | 5,488 | | | 5,408 | | | 1.5 | % |
| Total revenues | | 173,388 | | | 164,048 | | | 5.7 | % | | 648,125 | | | 611,289 | | | 6.0 | % |
| Costs and expenses: | | | | | | | | | | | | |
| Cost of sales | | 131,825 | | | 125,423 | | | 5.1 | % | | 490,142 | | | 463,721 | | | 5.7 | % |
| Operating, selling, general and administrative expenses | | 34,309 | | | 33,064 | | | 3.8 | % | | 130,971 | | | 127,140 | | | 3.0 | % |
| Operating income | | 7,254 | | | 5,561 | | | 30.4 | % | | 27,012 | | | 20,428 | | | 32.2 | % |
| Interest: | | | | | | | | | | | | |
| Debt | | 576 | | | 521 | | | 10.6 | % | | 2,259 | | | 1,787 | | | 26.4 | % |
| Finance lease obligations | | 119 | | | 89 | | | 33.7 | % | | 424 | | | 341 | | | 24.3 | % |
| Interest income | | (146) | | | (103) | | | 41.7 | % | | (546) | | | (254) | | | 115.0 | % |
| Interest, net | | 549 | | | 507 | | | 8.3 | % | | 2,137 | | | 1,874 | | | 14.0 | % |
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| Other (gains) and losses | | (813) | | | (3,848) | | | (78.9) | % | | 3,027 | | | 1,538 | | | 96.8 | % |
| Income before income taxes | | 7,518 | | | 8,902 | | | (15.5) | % | | 21,848 | | | 17,016 | | | 28.4 | % |
| Provision for income taxes | | 1,840 | | | 3,093 | | | (40.5) | % | | 5,578 | | | 5,724 | | | (2.6) | % |
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| Consolidated net income | | 5,678 | | | 5,809 | | | (2.3) | % | | 16,270 | | | 11,292 | | | 44.1 | % |
| Consolidated net (income) loss attributable to noncontrolling interest | | (184) | | | 466 | | | NM | | (759) | | | 388 | | | NM |
| Consolidated net income attributable to Walmart | | $ | 5,494 | | | $ | 6,275 | | | (12.4) | % | | $ | 15,511 | | | $ | 11,680 | | | 32.8 | % |
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| Net income per common share: | | | | | | | | | | | | |
| Basic net income per common share attributable to Walmart | | $ | 2.04 | | | $ | 2.33 | | | (12.4) | % | | $ | 5.76 | | | $ | 4.29 | | | 34.3 | % |
| Diluted net income per common share attributable to Walmart | | $ | 2.03 | | | $ | 2.32 | | | (12.5) | % | | $ | 5.74 | | | $ | 4.27 | | | 34.4 | % |
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| Weighted-average common shares outstanding: | | | | | | | | | | | | |
| Basic | | 2,690 | | | 2,696 | | | | | 2,692 | | | 2,724 | | | |
| Diluted | | 2,701 | | | 2,707 | | | | | 2,703 | | | 2,734 | | | |
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| Dividends declared per common share | | $ | — | | | $ | — | | | | | $ | 2.28 | | | $ | 2.24 | | | |
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NM = Not Meaningful
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| Walmart Inc. Condensed Consolidated Balance Sheets (Unaudited) | |
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| | January 31, | | January 31, | | |
| (Amounts in millions) | | 2024 | | 2023 | | |
| ASSETS | | | | | | |
| Current assets: | | | | | | |
| Cash and cash equivalents | | $ | 9,867 | | | $ | 8,625 | | | |
| Receivables, net | | 8,796 | | | 7,933 | | | |
| Inventories | | 54,892 | | | 56,576 | | | |
| Prepaid expenses and other | | 3,322 | | | 2,521 | | | |
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| Total current assets | | 76,877 | | | 75,655 | | | |
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| Property and equipment, net | | 110,810 | | | 100,760 | | | |
| Operating lease right-of-use assets | | 13,673 | | | 13,555 | | | |
| Finance lease right-of-use assets, net | | 5,855 | | | 4,919 | | | |
| Goodwill | | 28,113 | | | 28,174 | | | |
| Other long-term assets | | 17,071 | | | 20,134 | | | |
| Total assets | | $ | 252,399 | | | $ | 243,197 | | | |
| | | | | | |
| LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND EQUITY | | | | | | |
| Current liabilities: | | | | | | |
| Short-term borrowings | | $ | 878 | | | $ | 372 | | | |
| Accounts payable | | 56,812 | | | 53,742 | | | |
| | | | | | |
| Accrued liabilities | | 28,759 | | | 31,126 | | | |
| Accrued income taxes | | 307 | | | 727 | | | |
| Long-term debt due within one year | | 3,447 | | | 4,191 | | | |
| Operating lease obligations due within one year | | 1,487 | | | 1,473 | | | |
| Finance lease obligations due within one year | | 725 | | | 567 | | | |
| | | | | | |
| Total current liabilities | | 92,415 | | | 92,198 | | | |
| | | | | | |
| Long-term debt | | 36,132 | | | 34,649 | | | |
| Long-term operating lease obligations | | 12,943 | | | 12,828 | | | |
| Long-term finance lease obligations | | 5,709 | | | 4,843 | | | |
| Deferred income taxes and other | | 14,629 | | | 14,688 | | | |
| | | | | | |
| Commitments and contingencies | | | | | | |
| | | | | | |
| Redeemable noncontrolling interest | | 222 | | | 237 | | | |
| | | | | | |
| Equity: | | | | | | |
| Common stock | | 268 | | | 269 | | | |
| Capital in excess of par value | | 5,081 | | | 4,969 | | | |
| Retained earnings | | 89,814 | | | 83,135 | | | |
| Accumulated other comprehensive loss | | (11,302) | | | (11,680) | | | |
| Total Walmart shareholders’ equity | | 83,861 | | | 76,693 | | | |
| Nonredeemable noncontrolling interest | | 6,488 | | | 7,061 | | | |
| Total equity | | 90,349 | | | 83,754 | | | |
| Total liabilities, redeemable noncontrolling interest, and equity | | $ | 252,399 | | | $ | 243,197 | | | |
| | | | | | | | | | | | | | | | | |
| Walmart Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) | |
| | | | | | | | | | | | | | |
| | Fiscal Year Ended |
| | January 31, |
| (Amounts in millions) | | 2024 | | 2023 |
| Cash flows from operating activities: | | | | |
| Consolidated net income | | $ | 16,270 | | | $ | 11,292 | |
| | | | |
| | | | |
| Adjustments to reconcile consolidated net income to net cash provided by operating activities: | | | | |
| Depreciation and amortization | | 11,853 | | | 10,945 | |
| Investment (gains) and losses, net | | 3,193 | | | 1,683 | |
| | | | |
| | | | |
| Deferred income taxes | | (175) | | | 449 | |
| | | | |
| Other operating activities | | 2,642 | | | 1,919 | |
| Changes in certain assets and liabilities, net of effects of acquisitions and dispositions: | | | | |
| Receivables, net | | (797) | | | 240 | |
| Inventories | | 2,017 | | | (528) | |
| Accounts payable | | 2,515 | | | (1,425) | |
| Accrued liabilities | | (1,324) | | | 4,393 | |
| Accrued income taxes | | (468) | | | (127) | |
| Net cash provided by operating activities | | 35,726 | | | 28,841 | |
| | | | |
| Cash flows from investing activities: | | | | |
| Payments for property and equipment | | (20,606) | | | (16,857) | |
| Proceeds from the disposal of property and equipment | | 250 | | | 170 | |
| Proceeds from disposal of certain operations | | 135 | | | — | |
| | | | |
| Payments for business acquisitions, net of cash acquired | | (9) | | | (740) | |
| Other investing activities | | (1,057) | | | (295) | |
| Net cash used in investing activities | | (21,287) | | | (17,722) | |
| | | | |
| Cash flows from financing activities: | | | | |
| Net change in short-term borrowings | | 512 | | | (34) | |
| Proceeds from issuance of long-term debt | | 4,967 | | | 5,041 | |
| Repayments of long-term debt | | (4,217) | | | (2,689) | |
| | | | |
| Dividends paid | | (6,140) | | | (6,114) | |
| Purchase of Company stock | | (2,779) | | | (9,920) | |
| Dividends paid to noncontrolling interest | | (763) | | | (444) | |
| Sale of subsidiary stock | | 716 | | | 66 | |
| Purchase of noncontrolling interest | | (3,462) | | | (827) | |
| Other financing activities | | (2,248) | | | (2,118) | |
| Net cash used in financing activities | | (13,414) | | | (17,039) | |
| | | | |
| Effect of exchange rates on cash, cash equivalents and restricted cash | | 69 | | | (73) | |
| | | | |
| Net increase (decrease) in cash, cash equivalents and restricted cash | | 1,094 | | | (5,993) | |
| | | | |
| Cash, cash equivalents and restricted cash at beginning of year | | 8,841 | | | 14,834 | |
| Cash, cash equivalents and restricted cash at end of year | | $ | 9,935 | | | $ | 8,841 | |
| | | | | | | | | | | | | | | | | |
| Walmart Inc. Supplemental Financial Information (Unaudited) | |
Net sales and operating income
| | | | | | | | | | | | | | | | | | | | | | | |
| Net Sales | | Operating Income |
| Three Months Ended | | Three Months Ended |
| January 31, | | January 31, |
| (dollars in millions) | 2024 | 2023 | Percent Change | | 2024 | 2023 | Percent Change |
| Walmart U.S. | $ | 117,643 | | $ | 113,744 | | 3.4 | % | | $ | 6,075 | | $ | 5,382 | | 12.9 | % |
| Walmart International | 32,419 | | 27,575 | | 17.6 | % | | 1,438 | | 289 | | 397.6 | % |
| Sam’s Club | 21,852 | | 21,424 | | 2.0 | % | | 620 | | 515 | | 20.4 | % |
| Corporate and support | — | | — | | — | | | (879) | | (625) | | 40.6 | % |
| Consolidated | $ | 171,914 | | $ | 162,743 | | 5.6 | % | | $ | 7,254 | | $ | 5,561 | | 30.4 | % |
| | | | | | | |
| Net Sales | | Operating Income |
| Fiscal Year Ended | | Fiscal Year Ended |
| January 31, | | January 31, |
| (dollars in millions) | 2024 | 2023 | Percent Change | | 2024 | 2023 | Percent Change |
| Walmart U.S. | $ | 441,817 | | $ | 420,553 | | 5.1% | | $ | 22,154 | | $ | 20,620 | | 7.4% |
| Walmart International | 114,641 | | 100,983 | | 13.5% | | 4,909 | | 2,965 | | 65.6% |
| Sam’s Club | 86,179 | | 84,345 | | 2.2% | | 2,192 | | 1,964 | | 11.6% |
| Corporate and support | — | | — | | — | | (2,243) | | (5,121) | | -56.2% |
| Consolidated | $ | 642,637 | | $ | 605,881 | | 6.1% | | $ | 27,012 | | $ | 20,428 | | 32.2% |
U.S. comparable sales results
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | With Fuel | | Without Fuel | | Fuel Impact |
| | | 13 Weeks Ended | | 13 Weeks Ended | | 13 Weeks Ended |
| | 1/26/2024 | | 1/27/2023 | | 1/26/2024 | | 1/27/2023 | | 1/26/2024 | | 1/27/2023 |
| Walmart U.S. | | 4.0 | % | | 8.4 | % | | 4.0 | % | | 8.3 | % | | 0.0 | % | | 0.1 | % |
| Sam’s Club | | 1.9 | % | | 11.9 | % | | 3.1 | % | | 12.2 | % | | -1.2 | % | | -0.3 | % |
| Total U.S. | | 3.7 | % | | 8.9 | % | | 3.9 | % | | 8.8 | % | | -0.2 | % | | 0.1 | % |
| | | | | | | | | | | | |
| | | With Fuel | | Without Fuel | | Fuel Impact |
| | | 52 Weeks Ended | | 52 Weeks Ended | | 52 Weeks Ended |
| | 1/26/2024 | | 1/27/2023 | | 1/26/2024 | | 1/27/2023 | | 1/26/2024 | | 1/27/2023 |
| Walmart U.S. | | 5.5% | | 6.9% | | 5.6% | | 6.6% | | -0.1% | | 0.3% |
| Sam’s Club | | 2.3% | | 14.7% | | 4.8% | | 10.5% | | -2.5% | | 4.2% |
| Total U.S. | | 5.0% | | 8.2% | | 5.5% | | 7.1% | | -0.5% | | 1.1% |
Comparable sales is a metric that indicates the performance of our existing stores and clubs by measuring the change in sales for such stores and clubs, and it is important to review in conjunction with the company’s financial results reported in accordance with GAAP. Walmart's definition of comparable sales includes sales from stores and clubs open for the previous 12 months, including remodels, relocations, expansions and conversions, as well as eCommerce sales. Comparable sales excluding fuel is also an important, separate metric that indicates the performance of our existing stores and clubs without considering fuel, which is volatile and unpredictable. Other companies in our industry may calculate comparable sales differently, limiting the comparability of the metric.
| | | | | | | | | | | | | | | | | |
| Walmart Inc. Reconciliations of and Other Information Regarding Non-GAAP Financial Measures (Unaudited) | |
The following information provides reconciliations of certain non-GAAP financial measures presented in the press release to which this reconciliation is attached to the most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles (GAAP). The company has provided the non-GAAP financial information presented in the press release, which is not calculated or presented in accordance with GAAP, as information supplemental and in addition to the financial measures presented in the press release that are calculated and presented in accordance with GAAP. Such non-GAAP financial measures should not be considered superior to, as a substitute for or alternative to, and should be considered in conjunction with, the GAAP financial measures presented in the press release. The non-GAAP financial measures in the press release may differ from similar measures used by other companies.
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 changes in currency exchange rates as the difference between current period activity translated using the current period's currency exchange rates and the comparable prior year period's currency exchange rates. Additionally, no currency exchange rate fluctuations are calculated for non-USD acquisitions until owned for 12 months.
Throughout our discussion, we refer to the results of this calculation as the impact of currency exchange rate fluctuations. When we refer to constant currency operating results, this means operating results without the impact of the currency exchange rate fluctuations. The disclosure of constant currency amounts or results permits investors to better understand Walmart’s underlying performance without the effects of currency exchange rate fluctuations.
The table below reflects the calculation of constant currency for total revenues, net sales and operating income for the three months and fiscal year ended January 31, 2024.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended January 31, 2024 | | Fiscal Year Ended January 31, 2024 |
| Walmart International | | Consolidated | | Walmart International | | Consolidated |
| (Dollars in millions) | 2024 | Percent Change1 | | 2024 | Percent Change1 | | 2024 | Percent Change1 | | 2024 | Percent Change1 |
| Total revenues: | | | | | | | | | | | |
| As reported | $ | 32,772 | | 17.2 | % | | $ | 173,388 | | 5.7 | % | | $ | 116,049 | | 13.1 | % | | $ | 648,125 | | 6.0 | % |
| Currency exchange rate fluctuations | (1,268) | | N/A | | (1,268) | | N/A | | (2,980) | | N/A | | (2,980) | | N/A |
| | | | | | | | | | | |
| | | | | | | | | | | |
| Total revenues (cc) | $ | 31,504 | | 12.7 | % | | $ | 172,120 | | 4.9 | % | | $ | 113,069 | | 10.2 | % | | $ | 645,145 | | 5.5 | % |
| | | | | | | | | | | |
| Net sales: | | | | | | | | | | | |
| As reported | $ | 32,419 | | 17.6 | % | | $ | 171,914 | | 5.6 | % | | $ | 114,641 | | 13.5 | % | | $ | 642,637 | | 6.1 | % |
| Currency exchange rate fluctuations | (1,259) | | N/A | | (1,259) | | N/A | | (2,964) | | N/A | | (2,964) | | N/A |
| | | | | | | | | | | |
| | | | | | | | | | | |
| Net sales (cc) | $ | 31,160 | | 13.0 | % | | $ | 170,655 | | 4.9 | % | | $ | 111,677 | | 10.6 | % | | $ | 639,673 | | 5.6 | % |
| | | | | | | | | | | |
| Operating income: | | | | | | | | | | | |
| As reported | $ | 1,438 | | 397.6 | % | | $ | 7,254 | | 30.4 | % | | $ | 4,909 | | 65.6 | % | | $ | 27,012 | | 32.2 | % |
| Currency exchange rate fluctuations | (146) | | N/A | | (146) | | N/A | | (506) | | N/A | | (506) | | N/A |
| | | | | | | | | | | |
| | | | | | | | | | | |
| Operating income (cc) | $ | 1,292 | | 347.1 | % | | $ | 7,108 | | 27.8 | % | | $ | 4,403 | | 48.5 | % | | $ | 26,506 | | 29.8 | % |
1 Change versus prior year comparable period reported results.
N/A - Not applicable
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 meaningful measure to share with investors because it best allows comparison of the performance with that of the comparable period. In addition, adjusted operating income affords investors a view of what management considers Walmart’s core earnings performance and the ability to make a more informed assessment of such core earnings performance as compared with that of the prior year.
When we refer to adjusted operating income in constant currency, this means adjusted operating results without the impact of the currency exchange rate fluctuations. The disclosure of constant currency amounts or results permits investors to better understand Walmart’s underlying performance without the effects of currency exchange rate fluctuations. The tables below reflect the calculation of adjusted operating income and adjusted operating income in constant currency for the three months and fiscal year ended January 31, 2024 and 2023.
| | | | | | | | | | | | | | | | | |
| Three Months Ended January 31, |
| Walmart International | | Consolidated |
| (Dollars in millions) | 2024 | 2023 | | 2024 | 2023 |
| Operating income: | | | | | |
| Operating income, as reported | $ | 1,438 | | $ | 289 | | | $ | 7,254 | | $ | 5,561 | |
Business reorganization and restructuring charges1 | — | | 849 | | | — | | 849 | |
| Adjusted operating income | $ | 1,438 | | $ | 1,138 | | | $ | 7,254 | | $ | 6,410 | |
Percent change3 | 26.4 | % | NP | | 13.2 | % | NP |
| Currency exchange rate fluctuations | (146) | | — | | | (146) | | — | |
| Adjusted operating income, constant currency | $ | 1,292 | | $ | 1,138 | | | $ | 7,108 | | $ | 6,410 | |
Percent change3 | 13.5 | % | NP | | 10.9 | % | NP |
| | | | | |
| Fiscal Year Ended January 31, |
| Walmart International | | Consolidated |
| (Dollars in millions) | 2024 | 2023 | | 2024 | 2023 |
| Operating income: | | | | | |
| Operating income, as reported | $ | 4,909 | | $ | 2,965 | | | $ | 27,012 | | $ | 20,428 | |
Business reorganization and restructuring charges1 | — | | 849 | | | — | | 849 | |
Opioid legal charges2 | — | | — | | | 93 | | 3,325 | |
| Adjusted operating income | $ | 4,909 | | $ | 3,814 | | | $ | 27,105 | | $ | 24,602 | |
Percent change3 | 28.7 | % | NP | | 10.2 | % | NP |
| Currency exchange rate fluctuations | (506) | | — | | | (506) | | — | |
| Adjusted operating income, constant currency | $ | 4,403 | | $ | 3,814 | | | $ | 26,599 | | $ | 24,602 | |
Percent change3 | 15.4 | % | NP | | 8.1 | % | NP |
1 Business reorganization and restructuring charges in the fourth quarter of fiscal 2023 primarily relate to compensation expenses incurred in connection with the strategic decisions made in the Walmart International segment.
2 Recorded in Corporate and support.
3 Change versus prior year comparable period.
NP - Not provided
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 an increase of $6.9 billion when compared to the same period in the prior year. The increase is primarily due to higher cash provided by operating income, as well as timing of certain payments and strategic inventory management as part of working capital initiatives, partially offset by payment of the remaining accrued opioid legal charges. Free cash flow for the fiscal year ended January 31, 2024 was $15.1 billion, which represents an increase of $3.1 billion when compared to the same period in the prior year. The increase in free cash flow is due to the increase in operating cash flows described above, partially offset by an increase of $3.7 billion in capital expenditures to support our investment strategy.
Free cash flow is considered a non-GAAP financial measure. Management believes, however, that free cash flow, which measures our ability to generate additional cash from our business operations, is an important financial measure for use in evaluating the Company's financial performance. Free cash flow should be considered in addition to, rather than as a substitute for, consolidated net income as a measure of our performance and net cash provided by operating activities as a measure of our liquidity.
Additionally, Walmart’s definition of free cash flow is limited, in that it does not represent residual cash flows available for discretionary expenditures, due to the fact that the measure does not deduct the payments required for debt service and other contractual obligations or payments made for business acquisitions. Therefore, we believe it is important to view free cash flow as a measure that provides supplemental information to our Consolidated Statements of Cash Flows.
Although other companies report their free cash flow, numerous methods may exist for calculating a company’s free cash flow. As a result, the method used by Walmart’s management to calculate our free cash flow may differ from the methods used by other companies to calculate their free cash flow.
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 information regarding net cash used in investing activities and net cash used in financing activities.
| | | | | | | | | | | | | | |
| | Fiscal Year Ended |
| | | January 31, |
| (Dollars in millions) | | 2024 | | 2023 |
| Net cash provided by operating activities | | $ | 35,726 | | | $ | 28,841 | |
| Payments for property and equipment (capital expenditures) | | (20,606) | | | (16,857) | |
| Free cash flow | | $ | 15,120 | | | $ | 11,984 | |
| | | | |
Net cash used in investing activities1 | | $ | (21,287) | | | $ | (17,722) | |
| Net cash used in financing activities | | (13,414) | | | (17,039) | |
1 "Net Cash used in investing activities" includes payments for property and equipment, which is also included in our computation of free cash flow.
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 with GAAP (EPS), the most directly comparable financial measure calculated in accordance with GAAP. Management believes that Adjusted EPS is a meaningful measure to share with investors because it best allows comparison of the performance with that of the comparable period. In addition, Adjusted EPS affords investors a view of what management considers Walmart’s core earnings performance and the ability to make a more informed assessment of such core earnings performance with that of the prior year.
We adjust for the unrealized and realized gains and losses on our equity and other investments each quarter because although the investments are strategic decisions for the company’s retail operations, management’s measurement of each strategy is primarily focused on the operational results rather than the fair value of such investments. Additionally, management does not forecast changes in the fair value of its equity and other investments. Accordingly, management adjusts EPS each quarter for the unrealized and realized gains and losses related to those investments.
We have calculated Adjusted EPS for the three months and fiscal year ended January 31, 2024 by adjusting EPS for the following:
1.unrealized and realized gains and losses on the Company’s equity and other investments; and
2.incremental opioid settlement expense.
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended January 31, 20244 |
| Diluted earnings per share: | | | | | | | | |
| Reported EPS | | | | | | | | $2.03 |
| | | | | | | | |
| Adjustments: | | Pre-Tax Impact | | Tax Impact1,2 | | NCI Impact3 | | Net Impact |
Unrealized and realized (gains) and losses on equity and other investments5 | | $(0.31) | | $0.08 | | $— | | $(0.23) |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| Adjusted EPS | | | | | | | | $1.80 |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| | Fiscal Year Ended January 31, 20244 |
| Diluted earnings per share: | | | | | | | | |
| Reported EPS | | | | | | | | $5.74 |
| | | | | | | | |
| Adjustments: | | Pre-Tax Impact | | Tax Impact1,2 | | NCI Impact3 | | Net Impact |
Unrealized and realized (gains) and losses on equity and other investments6 | | $1.15 | | $(0.27) | | $— | | $0.88 |
| Incremental opioid settlement expense | | 0.04 | | (0.01) | | — | | 0.03 |
| Net adjustments | | | | | | | | $0.91 |
| | | | | | | | |
| Adjusted EPS | | | | | | | | $6.65 |
1 Tax impact calculated based on nature of item, including any realizable deductions, and statutory rate in effect for relevant jurisdictions.
2 The reported effective tax rate was 24.5% and 25.5% for the three months and fiscal year ended January 31, 2024, respectively. Adjusted for the above items, the effective tax rate was 24.5% and 25.2% for the three months and fiscal year ended January 31, 2024, respectively.
3 Calculated based on the ownership percentages of our noncontrolling interests.
4 Quarterly adjustments or adjusted EPS may not sum to YTD adjustments or YTD adjusted EPS due to rounding. Additionally, the individual components in the tables above may include immaterial rounding.
5 For the three months ended January 31, 2024, net gains were primarily driven by an increase in the underlying stock price of our investment in Symbotic and an increase in the fair value of our Asda debt securities, partially offset by a decrease in the underlying stock price of our investment in JD.com.
6 For the fiscal year ended January 31, 2024, net losses were primarily driven by a decrease in the underlying stock price of our investment in JD.com, partially offset by an increase in the underlying stock price of our investment in Symbotic and an increase in the fair value of our Asda debt securities.
As previously disclosed in our fiscal year ended January 31, 2023 press release, we have calculated Adjusted EPS for the three months and fiscal year ended January 31, 2023 by adjusting EPS for the following: (1) unrealized and realized gains and losses on the company’s equity and other investments; (2) gain on sale of equity method investment in Brazil; (3) a discrete tax item; (4) opioid legal charges; and (5) business reorganization and restructuring charges in Walmart International.
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended January 31, 2023 |
| Diluted earnings per share: | | | | | | | | |
| Reported EPS | | | | | | | | $2.32 |
| | | | | | | | |
| Adjustments: | | Pre-Tax Impact | | Tax Impact1, 2 | | NCI Impact3 | | Net Impact |
| | | | | | | | |
Unrealized and realized (gains) and losses on equity and other investments5 | | $(1.43) | | $0.27 | | $— | | $(1.16) |
| Business reorganization and restructuring charges | | 0.31 | | 0.40 | | (0.16) | | 0.55 |
Net adjustments4 | | | | | | | | $(0.61) |
| | | | | | | | |
Adjusted EPS4 | | | | | | | | $1.71 |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| | Fiscal Year Ended January 31, 20234 |
| Diluted earnings per share: | | | | | | | | |
| Reported EPS | | | | | | | | $4.27 |
| | | | | | | | |
| Adjustments: | | Pre-Tax Impact | | Tax Impact1, 2 | | NCI Impact3 | | Net Impact |
Unrealized and realized (gains) and losses on equity and other investments6 | | $0.77 | | $(0.12) | | $— | | $0.65 |
| Business reorganization and restructuring charges | | 0.31 | | 0.39 | | (0.16) | | 0.54 |
| Opioid legal charges | | 1.22 | | (0.17) | | — | | 1.05 |
| Gain on sale of equity method investment in Brazil | | (0.16) | | — | | — | | (0.16) |
| Discrete tax item | | — | | (0.06) | | — | | (0.06) |
| | | | | | | | |
| Net adjustments | | | | | | | | $2.02 |
| | | | | | | | |
| Adjusted EPS | | | | | | | | $6.29 |
1Tax impact calculated based on nature of item, including any realizable deductions, and statutory rate in effect for relevant jurisdictions. Business reorganization and restructuring charges include tax amounts incurred on separation of Flipkart and PhonePe. No tax expense was incurred in connection with the gain on sale of equity method investment in Brazil.
2 The reported effective tax rate was 34.7% and 33.6% for the three months and fiscal year ended January 31, 2023, respectively. Adjusted for the above items, the effective tax rate was 21.7% and 24.7% for the three months and fiscal year ended January 31, 2023, respectively.
3 Calculated based on the ownership percentages of our noncontrolling interests.
4 Quarterly adjustments or adjusted EPS may not sum to YTD adjustments or YTD adjusted EPS due to rounding. Additionally, the individual components in the tables above may include immaterial rounding.
5 For the three months ended January 31, 2023, net gains were primarily driven by increases in the underlying stock price of our investment in JD.com.
6 For the fiscal year ended January 31, 2023, net losses were primarily driven by decreases in the underlying stock price of our investment in JD.com.
Return on investment
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 investors because it helps investors assess how effectively Walmart is deploying its assets. Trends in ROI can fluctuate over time as management balances long-term strategic initiatives with possible short-term impacts. We consider ROA to be the financial measure computed in accordance with GAAP that is the most directly comparable financial measure to our calculation of ROI.
ROA was 6.6 percent and 4.6 percent for the trailing twelve months ended January 31, 2024 and 2023, respectively. The increase in ROA was primarily due to an increase in consolidated net income during the trailing twelve month period primarily due to higher operating income. ROI was 15.0 percent and 12.7 percent for the trailing 12 months ended January 31, 2024 and 2023, respectively. The increase in ROI was the result of an increase in operating income primarily due to lapping opioid legal charges as well as business reorganization and restructuring charges incurred in the prior year comparable period, as well as improvements in business performance, partially offset by an increase in average invested capital primarily due to higher purchases of property and equipment.
We define ROI as operating income plus interest income, depreciation and amortization, and rent expense for the trailing twelve months divided by average invested capital during that period. We consider average invested capital to be the average of our beginning and ending total assets, plus average accumulated depreciation and average amortization, less average accounts payable and average accrued liabilities for that period.
Our calculation of ROI is considered a non-GAAP financial measure because we calculate ROI using financial measures that exclude and include amounts that are included and excluded in the most directly comparable GAAP financial measure. For example, we exclude the impact of depreciation and amortization from our reported operating income in calculating the numerator of our calculation of ROI. As mentioned above, we consider ROA to be the financial measure computed in accordance with generally accepted accounting principles most directly comparable to our calculation of ROI. ROI differs from ROA (which is consolidated net income for the period divided by average total assets for the period) because ROI: adjusts operating income to exclude certain expense items and adds interest income; adjusts total assets for the impact of accumulated depreciation and amortization, accounts payable and accrued liabilities to arrive at total invested capital. Because of the adjustments mentioned above, we believe ROI more accurately measures how we are deploying our key assets and is more meaningful to investors than ROA. Although ROI is a standard financial measure, numerous methods exist for calculating a company’s ROI. As a result, the method used by management to calculate our ROI may differ from the methods used by other companies to calculate their ROI.
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 |
| | | | Ended | January 31, |
| (Dollars in millions) | | | | 2024 | | 2023 |
| Numerator | | | | | | |
| Consolidated net income | | | | $ | 16,270 | | | $ | 11,292 | |
| Denominator | | | | | | |
Average total assets1 | | | | 247,798 | | | 244,029 | |
| Return on assets (ROA) | | | | 6.6 | % | | 4.6 | % |
| | | | | | |
| CALCULATION OF RETURN ON INVESTMENT |
| Numerator | | | | | | |
| Operating income | | | | $ | 27,012 | | | $ | 20,428 | |
| + Interest income | | | | 546 | | | 254 | |
| + Depreciation and amortization | | | | 11,853 | | | 10,945 | |
| + Rent | | | | 2,277 | | | 2,306 | |
| ROI operating income | | | | $ | 41,688 | | | $ | 33,933 | |
| | | | | | |
| Denominator | | | | | | |
Average total assets1 | | | | $ | 247,798 | | | $ | 244,029 | |
'+ Average accumulated depreciation and amortization1 | | 114,944 | | | 106,249 | |
'- Average accounts payable1 | | | | 55,277 | | | 54,502 | |
'- Average accrued liabilities1 | | | | 29,943 | | | 28,593 | |
| Average invested capital | | | | $ | 277,522 | | | $ | 267,183 | |
| Return on investment (ROI) | | | | 15.0 | % | | 12.7 | % |
| | | | | | |
| | January 31, |
| Certain Balance Sheet Data | | 2024 | | 2023 | | 2022 |
| Total assets | | $ | 252,399 | | | $ | 243,197 | | | $ | 244,860 | |
| Accumulated depreciation and amortization | | 119,602 | | | 110,286 | | | 102,211 | |
| Accounts payable | | 56,812 | | | 53,742 | | | 55,261 | |
| Accrued liabilities | | 28,759 | | | 31,126 | | | 26,060 | |
1 The average is based on the addition of the account balance at the end of the current period to the account balance at the end of the prior period and dividing by 2.
Financial presentation to accompany management commentary FY24 Q4
The following guidance reflects the Company’s expectations for the first quarter and fiscal year 2025 and is provided on a non-GAAP basis as the Company cannot predict certain elements that are included in reported GAAP results, such as the changes in fair value of the Company’s equity and other investments. Growth rates reflect an adjusted basis for prior year results. Additionally, the Company’s guidance assumes a generally stable consumer and continued pressure from its mix of products and formats globally. The Company’s fiscal year guidance is based on the following FY24 figures: Net sales: $642.6 billion, adjusted operating income1: $27.1 billion, adjusted EPS1 $6.65. Metric Q1 Consolidated net sales (cc) Increase 4.0% to 5.0%, leap year estimated to benefit approximately 100bps Consolidated operating income (cc) Increase 3.0% to 4.5% Adjusted EPS $1.48 to $1.56 pre-split; $0.49 to $0.52 post-split Metric Fiscal Year 2025 Consolidated net sales (cc) Increase 3.0% to 4.0% Consolidated operating income (cc) Increase 4.0% to 6.0% Interest, net Increase approximately $100M to $200M Effective tax rate Approximately 25.0% to 26.0% Non-controlling interest Relatively flat Adjusted EPS $6.70 to $7.12 pre-split; $2.23 to $2.37 post-split Capital expenditures Approximately 3.0% to 3.5% of net sales 1 See additional information at the end of this presentation regarding non-GAAP financial measures cc = constant currency Guidance 2
Total revenues (cc)1 $172.1 billion, up +4.9% Amounts in billions, except as noted. Dollar changes may not recalculate due to rounding. • Total revenues reached $173.4 billion with strength across all operating segments • Positively affected by $1.3 billion from currency fluctuations • eCommerce net sales globally up 23%, reaching $30 billion and 18% of net sales, led by pickup and delivery • Increased transactions across digital and in-store channels • Strong growth in membership income globally Y/Y Change +7.3% +7.6% +5.7% +5.2% +5.7% Y/Y Change (cc)1 +7.9% +7.7% +5.4% +4.3% +4.9% 1See additional information at the end of this presentation regarding non-GAAP financial measures. Total revenues $164.0 $152.3 $161.6 $160.8 $173.4 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 3
• Improvement from continuing to manage pricing aligned to competitive historic price gaps and lower markdowns resulting from strong inventory management • Partially offset by the timing of Flipkart's The Big Billion Days (BBD) event which shifted from Q3 last year to Q4 this year, and continued category mix pressure in the Walmart U.S. segment Y/Y Change -83bps -18bps +50bps +32bps +39bps Gross profit rate 22.9% 23.7% 24.0% 24.0% 23.3% Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Gross profit rate +39bps to 23.3% 4
Adjusted operating expenses as a percentage of net sales1, +16bps to 20.0% • Operating expenses leveraged on a reported basis 36bps, primarily due to the lapping of a discrete charge of $0.8B associated with business reorganization and restructurings • Adjusted1 operating expenses deleveraged 16bps largely due to higher variable pay expenses in the U.S. as we exceeded our planned performance this year Y/Y Change -89bps -58bps +27bps +37bps +16bps 19.8% 20.4% 20.2% 21.0% 20.0% Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Operating expenses as a percentage of net sales 20.3% 20.4% 20.3% 21.0% 20.0% Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Y/Y Change -44bps -58bps +33bps -182bps -36bps Operating expenses as a percentage of net sales Adjusted operating expenses as a percentage of net sales1 1See additional information at the end of this presentation regarding non-GAAP financial measures. 5
1See additional information at the end of this presentation regarding non-GAAP financial measures. Operating income • Adjusted operating income1 up 13.2% relative to 5.6% growth in net sales, positively affected by currency and LIFO of 2.3% and 1.0%, respectively • Q4 FY23 and Q2 FY24 reported operating income negatively affected by discrete charges of $0.8B and $0.1B, respectively, associated with business reorganization and restructurings and the opioid legal settlement framework • Q4 FY24 net income margin decreased ~70 bps and adjusted EBITDA margin1 increased ~30bps Operating income Adjusted operating income1 $5.6 $6.2 $7.3 $6.2 $7.3 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Y/Y Change +6.9% +17.3% +8.1% +3.0% +13.2% Y/Y Change (cc)1 +6.3% +16.0% +6.3% +0.3% +10.9% Y/Y Change -5.5% +17.3% +6.7% +130.1% +30.4% Y/Y Change (cc)1 -6.5% +16.0% +4.9% +124.0% +27.8% $6.4 $6.2 $7.4 $6.2 $7.3 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Adjusted operating income1 of $7.3 billion, up 13.2% Amounts in billions, except as noted. Dollar changes may not recalculate due to rounding. 6
1See additional information at the end of this presentation regarding non-GAAP financial measures. NM = not meaningful Adjusted EPS1 of $1.80, up 5.3% EPS PY $1.53 $1.30 $1.77 $1.50 $1.71 Y/Y Change +11.8% +13.1% +4.0% +2.0% +5.3% • Adjusted EPS1 of $1.80 excludes the effect, net of tax, from a net gain of $0.23 on equity and other investments • Adjusted EPS1 increased 5.3% due primarily to strong growth in operating income, partially offset by higher tax expense and non-controlling interest Y/Y Change +81.3% -16.2% +55.3% NM -12.5% EPS Adjusted EPS1 $1.71 $1.47 $1.84 $1.53 $1.80 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 $2.32 $0.62 $2.92 $0.17 $2.03 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 7
PY $11.1 $(7.3) $1.7 $3.6 $12.0 Y/Y Change +8.2% NM +414.0% +19.4% +26.2% • Operating cash flow increased $6.9 billion primarily due to higher cash provided by operating income, as well as timing of certain payments and strategic inventory management as part of working capital initiatives • Partially offset by payment of the remaining accrued opioid legal charges • Free cash flow1 increased $3.1 billion due to the increase in operating cash flow, partially offset by an increase of $3.7 billion in capital expenditures to support the company's investment strategy 1See additional information at the end of this presentation regarding non-GAAP financial measures. NM = not meaningful PY $24.2 $(3.8) $9.2 $15.7 $28.8 Y/Y Change +19.3% NM +97.0% +21.1% +23.9% Operating cash flow Free cash flow1 Cash flow $12.0 $0.2 $9.0 $4.3 $15.1 Q4 FY23 YTD Q1 FY24 YTD Q2 FY24 YTD Q3 FY24 YTD Q4 FY24 YTD $28.8 $4.6 $18.2 $19.0 $35.7 Q4 FY23 YTD Q1 FY24 YTD Q2 FY24 YTD Q3 FY24 YTD Q4 FY24 YTD Amounts in billions, except as noted. Dollar changes may not recalculate due to rounding. 8
Through dividends and share repurchases Amounts in billions, except as noted. Dollar changes may not recalculate due to rounding. • Share repurchases during the quarter totaled $1,497 million representing 9.5 million shares, at an average price of $156.61 per share • Remaining share repurchase authorization is $16.5 billion Returns to shareholders $2.7 $2.2 $2.0 $1.6 $3.0 Returns to shareholders $1.5 $1.5 $1.5 $1.5 $1.5 $1.2 $0.7 $0.5 $0.1 $1.5 Dividends Share repurchases Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 9
Y/Y Change -220bps -120bps -100bps +130bps +230bps • ROI1 increased primarily as a result of an increase in operating income, primarily due to lapping opioid legal charges and business reorganization and restructuring charges recorded in FY23, as well as improvements in business performance 1See additional information at the end of this presentation regarding non-GAAP financial measures. Return on assets (ROA) Return on investment (ROI)1 Returns Y/Y Change -100bps -100bps -20bps +280bps +200bps 4.6% 4.5% 5.6% 6.5% 6.6% Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 12.7% 12.7% 12.8% 14.1% 15.0% Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 10
Net sales +3.4%, eCommerce +17% • Comp sales +4.0% with strength in grocery and health & wellness, partially offset by softness in general merchandise ◦ Transactions without fuel +4.3% ◦ Average ticket without fuel -0.3% • Strong growth in-store and digital transaction counts • Strong share gains in grocery and general merchandise, particularly among higher- income households • eCommerce growth reflects double-digit increase in store-fulfilled pickup and delivery, growth in marketplace due in part to a 20% increase in sellers, and a 22% increase in Walmart Connect advertising sales eCommerce Contribution ~140bps ~270bps ~230bps ~300bps ~240bps Walmart U.S. comp sales1 8.3% 7.4% 6.4% 4.9% 4.0% Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 1Comp sales for the 13-week period ended January 26, 2024 compared to the 13-week period ended January 27, 2023, and excludes fuel. 11
Remodels: 205 Q4; ~700 YTD Pickup: ~4,600 stores Delivery from Store: ~4,300 • 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, while general merchandise sales declined; sequential improvement versus Q3 Gross profit rate +64 bps • Largely due to higher variable pay expense as we exceeded our planned performance this year Operating expenses as a percentage of net sales +30 bps • Reflects gross margin expansion and increased Walmart+ membership income, partially offset by expense deleverage Operating income $6.1 billion, +12.9% • Strong inventory management while continuing to improve in-stock levels • Maintaining discipline in buying general merchandise Inventory -4.5% Walmart U.S. 12
Merchandise category performance details Walmart U.S. Category Comp Comments Grocery + mid single-digit • Strong comps reflected continued share gains in dollars and units (according to Nielsen) • Grocery inflation +LSD in Q4 (but moderated ~150 bps versus Q3); up +high-teens on a two-year stack • Food units grew with strong growth in fresh food • Consumables led by strength in personal care, pet supplies and beauty products due in part to inflation Health & Wellness + mid teens • Strong pharmacy sales reflected increased script counts, higher mix of branded versus generic prescriptions, strength in immunizations, and branded drug inflation General Merchandise - low single-digit • Comps reflected softness in home, seasonal and toys due in part to deflation; automotive categories performed well • Increase in units sold in home, fashion, and hardlines • Share gains led by higher-income households (per Circana) 13
Net sales (cc)1 $31.2 billion, +13.0% Amounts in billions, except as noted. Dollar changes may not recalculate due to rounding. • Sales growth (cc)1 led by Flipkart, Walmex, and China with strong performance in festive events across markets • Currency rate fluctuations positively affected sales by $1.3 billion • eCommerce sales increased 44% led by marketplace and store fulfilled, and eCommerce penetration reached 25% for the first time • Overall and eCommerce sales growth positively affected by the timing of Flipkart’s The Big Billion Days event, which shifted from Q3 last year to Q4 this year • Opened 110 new stores in the quarter Y/Y Change +2.1% +12.0% +13.3% +10.8% +17.6% Net Sales (cc)1,2 $27.6 $26.8 $27.0 $26.7 $31.2 Y/Y Change (cc)1 +5.5% +12.9% +11.0% +5.4% +13.0% Walmart International net sales $27.6 $26.6 $27.6 $28.0 $32.4 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Net sales 1See additional information at the end of this presentation regarding non-GAAP financial measures. 2For Q4 FY23, net sales constant currency reflects reported results for comparison to current quarter growth in constant currency. 14
• 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 powered by Walmart 1See additional information at the end of this presentation regarding non-GAAP financial measures. Gross profit rate -39 bps • Approximately three-fourths of leverage due to lapping last year's one-time costs incurred for the ownership separation of Flipkart and PhonePe and restructuring in Africa • Additional leverage from timing shift of BBD and operational efficiencies Operating expenses as a percentage of net sales -410 bps • Operating income growth mostly due to lapping last year's one-time costs • Adjusted operating income growing double digits, led by Canada, Walmex, and China Operating income $1.4 billion, +397.6%; $1.3 billion (cc)1, +347.1% Inventory +5.2% Walmart International • Increase due to currency rate fluctuations Adjusted operating income1 $1.3 billion (cc)1, +13.5% 15
Sales • Continued strength in food and consumables • Opened 162 new stores in past twelve months, including 101 new stores in the quarter • In Mexico, comp sales grew 6.6% driven by Bodega and Sam's Club • Double-digit growth during annual "El Fin Irresistible" festive event Gross profit rate Increase • Higher gross profit from both stores and eCommerce, as well as growth of advertising Operating expense rate Increase • Ongoing investments in strategic priorities and Hurricane Otis costs in Mexico Operating income $ Increase Net sales growth +11.8% +10.6% +10.1% +9.4% +7.7% eCommerce net sales growth +14% +17% +21% +16% +21% 1Results are presented on a constant currency basis. Net sales and comparable sales are presented on a nominal, calendar basis and include eCommerce results. Change is calculated as the change versus the prior year comparable period. 2Walmex includes the consolidated results of Mexico and Central America Walmex1,2 Net sales (cc): $12.9 billion, +7.7% 10.6% 9.3% 8.7% 8.0% 6.3% Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Comparable sales growth 16
Net sales growth +5.9% +6.7% +5.1% +5.3% +1.8% eCommerce net sales growth -3% -2% +4% +16% +11% 1Results are presented on a constant currency basis. Net sales and comparable sales are presented on a nominal, calendar basis and include eCommerce results. Change is calculated as the change versus the prior year comparable period. Canada1 Net sales (cc): $6.0 billion, +1.8% 5.7% 6.3% 4.8% 5.0% 1.5% Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Sales • Strong performance during festive events • Continuation of food and consumables growth outpacing general merchandise • eCommerce growth led by store fulfilled and marketplace Gross profit rate Increase • Efficiencies in logistics and lower import costs Operating expense rate Relatively flat • Balanced expense management Operating income $ Increase Comparable sales growth 17
Net sales growth +13.5% +28.3% +21.7% +25.3% +11.3% eCommerce net sales growth +70% +54% +44% +38% +11% 1Results are presented on a constant currency basis. Net sales and comparable sales are presented on a nominal, calendar basis and include eCommerce results. Change is calculated as the change versus the prior year comparable period. China1 Net sales (cc): $4.0 billion, +11.3% 13.3% 25.5% 17.2% 18.6% 6.6% Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Sales • Continued strength in Sam’s Club and eCommerce • Growth negatively affected by a later start to the Chinese New Year season this year compared to last year • eCommerce penetration at 48% Gross profit rate Relatively flat • Lower eCommerce delivery costs offsetting ongoing format mix changes Operating expense rate Decrease • Driven by sales growth, format mix changes, and operational efficiencies Operating income $ Increase Comparable sales growth 18
Net sales with fuel +2.0%, Net sales without fuel +3.3%, eCommerce +17% • Solid comp sales driven by increases in transactions and unit volume ◦ Transactions without fuel +3.6% ◦ Average ticket without fuel -0.4% • Strength in food and consumables, and healthcare • Gained dollar and unit market share in grocery (according to Nielsen) • eCommerce +17%, led by delivery and curbside • Scan & Go penetration is up over 270 bps eComm Cont. without fuel ~120bps ~160bps ~150bps ~170bps ~190bps 1Comp sales for the 13-week period ended January 26, 2024 compared to the 13-week period ended January 27, 2023. Sam’s Club U.S. comp sales1 Sam's Club U.S. comp sales 11.9% 4.2% (0.2)% 3.3% 1.9% 12.2% 7.0% 5.5% 3.8% 3.1% With fuel Without fuel Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 19
• Rate increase primarily due to lapping elevated markdowns last year Gross profit rate +31 bps, without fuel +22 bps • Lower fuel sales due to price deflation negatively affected expense leverage Operating expenses as a percentage of net sales +14 bps, without fuel +2 bps • All-time highs for total and Plus membership, Plus penetration +130bps y/y • Expiration of Sam’s Cash offer last year, offsetting fee increase for members Membership income +10.0% Inventory -8.1% Sam’s Club U.S. Operating income $620M, +20.4%, without fuel $501M, +25.9% • Lapping elevated markdowns last year and increased membership income benefited operating income • Strong inventory management while maintaining discipline in buying general merchandise 20
Category comparable sales Sam’s Club U.S. Category Comp Comments Fresh / Freezer / Cooler + mid single-digit • Fresh meat, produce & floral, and prepared foods performed well Grocery and Beverage + low single-digit • Candy, drinks and snacks showed strength Consumables + mid single-digit • Paper goods, laundry & home care, and baby care performed well Home and Apparel - low single-digit • Softness in toys, furniture and sporting goods, partially offset by strength in automotive Technology, Office and Entertainment - low single-digit • Softness in office supplies and consumer electronics, partially offset by strength in gift cards Health and Wellness + high-teens • Strong performance in pharmacy and over the counter 21
1See additional information at the end of this presentation regarding non-GAAP financial measures. 2Post-split figures may not recalculate to pre-split figures due to rounding. 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 of the close of business on February 22, 2024 will receive two additional shares of common stock, to be distributed after the close of trading on February 23, 2024. For additional information, refer to our Report on Form 8-K filed with the SEC dated January 31, 2024. The table below reflects our Reported and Adjusted1 diluted earnings per share, on both a pre-split and post-split basis2, for the fiscal year ended January 31, 2024 and each fiscal 2024 quarterly period. Three Months Ended Apr 30, 2023 Three Months Ended Jul 31, 2023 Three Months Ended Oct 31, 2023 Three Months Ended Jan 31, 2024 Fiscal Year Ended Jan 31, 2024 (Amounts in millions, except per share data) PRE-SPLIT BASIS POST-SPLIT BASIS PRE-SPLIT BASIS POST-SPLIT BASIS PRE-SPLIT BASIS POST-SPLIT BASIS PRE-SPLIT BASIS POST-SPLIT BASIS PRE-SPLIT BASIS POST-SPLIT BASIS Diluted earnings per share: Consolidated net income (loss) attributable to Walmart $1,673 $1,673 $7,891 $7,891 $453 $453 $5,494 $5,494 $15,511 $15,511 Weighted-average common shares outstanding 2,704 8,112 2,703 8,108 2,703 8,110 2,701 8,102 2,703 8,108 Reported EPS $0.62 $0.21 $2.92 $0.97 $0.17 $0.06 $2.03 $0.68 $5.74 $1.91 Adjusted EPS1 $1.47 $0.49 $1.84 $0.61 $1.53 $0.51 $1.80 $0.60 $6.65 $2.22 22
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 comparable sales reporting calendar, which will occur in fiscal 2025. The following tables reflect our period ending dates for the reporting of U.S. comparable sales throughout fiscal 2025 and fiscal 2026. The additional week only affects 4-5-4 comparable sales; all other measures remain unaffected. FY25 Comparable Sales Q1 13 Weeks Ended Q2 13 Weeks Ended Q3 13 Weeks Ended Q4 14 Weeks Ended Full Year 53 Weeks Ended FY25 (53 weeks) April 26, 2024 July 26, 2024 October 25, 2024 January 31, 2025 January 31, 2025 Base: FY24 (53 weeks) April 28, 2023 July 28, 2023 October 27, 2023 February 02, 2024 February 02, 2024 Comparison Period: FY24 Comparable Sales Q1 13 Weeks Ended Q2 13 Weeks Ended Q3 13 Weeks Ended Q4 13 Weeks Ended Full Year 52 Weeks Ended FY24 (52 weeks)1 April 28, 2023 July 28, 2023 October 27, 2023 January 26, 2024 January 26, 2024 Base: FY23 (52 weeks) April 29, 2022 July 29, 2022 October 28, 2022 January 27, 2023 January 27, 2023 FY25 Reporting FY26 Comparable Sales Q1 13 Weeks Ended Q2 13 Weeks Ended Q3 13 Weeks Ended Q4 13 Weeks Ended Full Year 52 Weeks Ended FY26 (52 weeks) May 02, 2025 August 01, 2025 October 31, 2025 January 30, 2026 January 30, 2026 Base: FY25 (52 weeks) May 03, 2024 August 02, 2024 November 01, 2024 January 31, 2025 January 31, 2025 Comparison Period: FY25 Comparable Sales Q1 13 Weeks Ended Q2 13 Weeks Ended Q3 13 Weeks Ended Q4 14 Weeks Ended Full Year 53 Weeks Ended FY25 (53 weeks)1 April 26, 2024 July 26, 2024 October 25, 2024 January 31, 2025 January 31, 2025 Base: FY24 (53 weeks) April 28, 2023 July 28, 2023 October 27, 2023 February 02, 2024 February 02, 2024 FY26 Reporting 1Our comparable sales calculations are based on periods of equal lengths and comparison periods are presented as they were originally reported. If the comparison periods were recast to align to the same number of weeks as the reporting period, any changes to the previously reported comparable sales would be inconsequential. 23
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 Securities Exchange Act of 1934, as amended. Assumptions on which such forward-looking statements are based are also forward-looking statements. Our actual results may differ materially from those expressed in or implied by any of these forward-looking statements as a result of changes in circumstances, assumptions not being realized or other risks, uncertainties and factors including: the impact of the COVID-19 pandemic on our business and the global economy; economic, capital markets and business conditions; trends and events around the world and in the markets in which we operate; currency exchange rate fluctuations, changes in market interest rates and market levels of wages; changes in the size of various markets, including eCommerce markets; unemployment levels; inflation or deflation, generally and in particular product categories; consumer confidence, disposable income, credit availability, spending levels, shopping patterns, debt levels and demand for certain merchandise; the effectiveness of the implementation and operation of our strategies, plans, programs and initiatives; unexpected changes in our objectives and plans; the impact of acquisitions, investments, divestitures, store or club closures, and other strategic decisions; our ability to successfully integrate acquired businesses, including within the eCommerce space; changes in the trading prices of certain equity investments we hold; initiatives of competitors, competitors' entry into and expansion in our markets, and competitive pressures; customer traffic and average ticket in our stores and clubs and on our eCommerce websites; the mix of merchandise we sell, the cost of goods we sell and the shrinkage we experience; trends in consumer shopping habits around the world and in the markets in which we operate; our gross profit margins; the financial performance of Walmart and each of its segments, including the amounts of our cash flow during various periods; changes in the credit ratings assigned to our commercial paper and debt securities by credit rating agencies; the amount of our net sales and operating expenses denominated in the U.S. dollar and various foreign currencies; transportation, energy and utility costs; commodity prices and the price of gasoline and diesel fuel; supply chain disruptions and disruptions in seasonal buying patterns; the availability of goods from suppliers and the cost of goods acquired from suppliers; consumer acceptance of and response to our stores, clubs, eCommerce platforms, programs, merchandise offerings and delivery methods; cyber security events affecting us and related costs and impact to the business; developments in, outcomes of, and costs incurred in legal or regulatory proceedings to which we are a party or are subject, and the liabilities, obligations and expenses, if any, that we may incur in connection therewith; casualty and accident-related costs and insurance costs; the turnover in our workforce and labor costs, including healthcare and other benefit costs; consumer enrollment in health and drug insurance programs and such programs’ reimbursement rates and drug formularies; our effective tax rate and the factors affecting our effective tax rate, including assessments of certain tax contingencies, valuation allowances, changes in law, administrative audit outcomes, impact of discrete items and the mix of earnings between the U.S. and Walmart's international operations; changes in existing tax, labor and other laws and regulations and changes in tax rates including the enactment of laws and the adoption and interpretation of administrative rules and regulations; the imposition of new taxes on imports, new tariffs and changes in existing tariff rates; the imposition of new trade restrictions and changes in existing trade restrictions; adoption or creation of new, and modification of existing, governmental policies, programs, initiatives and actions in the markets in which Walmart operates and elsewhere and actions with respect to such policies, programs and initiatives; changes in accounting estimates or judgments; the level of public assistance payments; natural disasters, changes in climate, geopolitical events and catastrophic events; and changes in generally accepted accounting principles in the United States. Our most recent annual report on Form 10-K and subsequent quarterly reports on Form 10-Q filed with the SEC discuss other risks and factors that could cause actual results to differ materially from those expressed or implied by any forward-looking statement in the presentations. We urge you to consider all of the risks, uncertainties and factors identified above or discussed in such reports carefully in evaluating the forward-looking statements in this release. Walmart cannot assure you that the results reflected in or implied by any forward-looking statement will be realized or, even if substantially realized, that those results will have the forecasted or expected consequences and effects for or on our operations or financial performance. The forward-looking statements made in the presentation are as of the date of this meeting. Walmart undertakes no obligation to update these forward-looking statements to reflect subsequent events or circumstances. This presentation includes certain non-GAAP measures as defined under SEC rules, including net sales, revenue, and operating income on a constant currency basis, adjusted operating expenses as a percentage of net sales, adjusted operating income, adjusted EPS, free cash flow, return on investment, and adjusted EBITDA and adjusted EBITDA margin. Refer to information about the non-GAAP measures contained in this presentation. Additional information as required by Regulation G and Item 10(e) of Regulation S-K regarding non-GAAP measures can be found in our most recent Form 10-K and our Form 8-K furnished as of the date of this presentation with the SEC, which are available at stock.walmart.com. 24
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 investors because it helps investors assess how effectively Walmart is deploying its assets. Trends in ROI can fluctuate over time as management balances long-term strategic initiatives with possible short-term impacts. We consider ROA to be the financial measure computed in accordance with GAAP that is the most directly comparable financial measure to our calculation of ROI. ROA was 6.6% percent and 4.6% percent for the trailing twelve months ended January 31, 2024 and 2023, respectively. The increase in ROA was primarily due to an increase in consolidated net income during the trailing twelve month period primarily due to higher operating income. ROI was 15.0% and 12.7% for the trailing 12 months ended January 31, 2024 and 2023, respectively. The increase in ROI was the result of an increase in operating income primarily due to lapping opioid legal charges as well as business reorganization and restructuring charges incurred in the prior year comparable period, as well as improvements in business performance, partially offset by an increase in average invested capital primarily due to higher purchases of property and equipment. We define ROI as operating income plus interest income, depreciation and amortization, and rent expense for the trailing twelve months divided by average invested capital during that period. We consider average invested capital to be the average of our beginning and ending total assets, plus average accumulated depreciation and average amortization, less average accounts payable and average accrued liabilities for that period. Our calculation of ROI is considered a non-GAAP financial measure because we calculate ROI using financial measures that exclude and include amounts that are included and excluded in the most directly comparable GAAP financial measure. For example, we exclude the impact of depreciation and amortization from our reported operating income in calculating the numerator of our calculation of ROI. As mentioned above, we consider ROA to be the financial measure computed in accordance with generally accepted accounting principles most directly comparable to our calculation of ROI. ROI differs from ROA (which is consolidated net income for the period divided by average total assets for the period) because ROI: adjusts operating income to exclude certain expense items and adds interest income; adjusts total assets for the impact of accumulated depreciation and amortization, accounts payable and accrued liabilities to arrive at total invested capital. Because of the adjustments mentioned above, we believe ROI more accurately measures how we are deploying our key assets and is more meaningful to investors than ROA. Although ROI is a standard financial measure, numerous methods exist for calculating a company’s ROI. As a result, the method used by management to calculate our ROI may differ from the methods used by other companies to calculate their ROI. 25
The calculation of ROA and ROI, along with a reconciliation of ROI to the calculation of ROA, is as follows: Non-GAAP measures – ROI (cont.) 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 Consolidated net income $ 11,292 $ 11,085 $ 13,991 $ 16,401 $ 16,270 Denominator Average total assets1 $ 244,029 $ 245,598 $ 251,160 $ 253,415 $ 247,798 Return on assets (ROA) 4.6 % 4.5 % 5.6 % 6.5 % 6.6 % Jan 31, Apr 30, Jul 31, Oct 31, Jan 31, Apr 30, Jul 31, Oct 31, Jan 31, Certain Balance Sheet Data 2022 2022 2022 2022 2023 2023 2023 2023 2024 Total assets $ 244,860 $ 246,142 $ 247,199 $ 247,656 $ 243,197 $ 245,053 $ 255,121 $ 259,174 $ 252,399 Accumulated depreciation and amortization 102,211 104,295 105,963 107,628 110,286 113,164 115,878 118,122 119,602 Accounts payable 55,261 52,926 54,191 57,263 53,742 54,268 56,576 61,049 56,812 Accrued liabilities 26,060 21,061 23,843 27,443 31,126 27,527 29,239 26,132 28,759 1The average is based on the addition of the account balance at the end of the current period to the account balance at the end of the prior period and dividing by 2 26
The calculation of ROA and ROI, along with a reconciliation of ROI to the calculation of ROA, is as follows: Non-GAAP measures – ROI (cont.) 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 Numerator Operating income $ 20,428 $ 21,350 $ 21,812 $ 25,319 $ 27,012 + Interest income 254 323 442 504 546 + Depreciation and amortization 10,945 11,110 11,318 11,547 11,853 + Rent 2,306 2,301 2,284 2,286 2,277 ROI operating income $ 33,933 $ 35,084 $ 35,856 $ 39,656 $ 41,688 Denominator Average total assets1 $ 244,029 $ 245,598 $ 251,160 $ 253,415 $ 247,798 '+ Average accumulated depreciation and amortization1 106,249 108,730 110,921 112,875 114,944 '- Average accounts payable1 54,502 53,597 55,384 59,156 55,277 '- Average accrued liabilities1 28,593 24,294 26,541 26,788 29,943 Average invested capital $ 267,183 $ 276,437 $ 280,156 $ 280,346 $ 277,522 Return on investment (ROI) 12.7 % 12.7 % 12.8 % 14.1 % 15.0 % 1The average is based on the addition of the account balance at the end of the current period to the account balance at the end of the prior period and dividing by 2 27
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 an increase of $6.9 billion when compared to the same period in the prior year. The increase is primarily due to higher cash provided by operating income, as well as timing of certain payments and strategic inventory management as part of working capital initiatives, partially offset by payment of the remaining accrued opioid legal charges. Free cash flow for the fiscal year ended January 31, 2024 was $15.1 billion, which represents an increase of $3.1 billion when compared to the same period in the prior year. The increase in free cash flow is due to the increase in operating cash flows described above, partially offset by an increase of $3.7 billion in capital expenditures to support our investment strategy. Free cash flow is considered a non-GAAP financial measure. Management believes, however, that free cash flow, which measures our ability to generate additional cash from our business operations, is an important financial measure for use in evaluating the Company's financial performance. Free cash flow should be considered in addition to, rather than as a substitute for, consolidated net income as a measure of our performance and net cash provided by operating activities as a measure of our liquidity. Additionally, Walmart’s definition of free cash flow is limited, in that it does not represent residual cash flows available for discretionary expenditures, due to the fact that the measure does not deduct the payments required for debt service and other contractual obligations or payments made for business acquisitions. Therefore, we believe it is important to view free cash flow as a measure that provides supplemental information to our Consolidated Statements of Cash Flows. Although other companies report their free cash flow, numerous methods may exist for calculating a company’s free cash flow. As a result, the method used by Walmart’s management to calculate our free cash flow may differ from the methods used by other companies to calculate their free cash flow. 28
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 information regarding net cash used in investing activities and net cash used in financing activities. Year to Date Period Ended (Dollars in millions) Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Net cash provided by operating activities $ 28,841 $ 4,633 $ 18,201 $ 19,014 $ 35,726 Payments for property and equipment (capital expenditures) (16,857) (4,429) (9,216) (14,674) (20,606) Free cash flow $ 11,984 $ 204 $ 8,985 $ 4,340 $ 15,120 Net cash used in investing activities1 $ (17,722) $ (4,860) $ (9,909) $ (15,374) $ (21,287) Net cash provided by (used in) financing activities $ (17,039) $ 1,940 $ (3,309) $ (179) $ (13,414) Year to Date Period Ended (Dollars in millions) Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Net cash provided by (used in) operating activities $ 24,181 $ (3,758) $ 9,240 $ 15,698 $ 28,841 Payments for property and equipment (capital expenditures) (13,106) (3,539) (7,492) (12,061) (16,857) Free cash flow $ 11,075 $ (7,297) $ 1,748 $ 3,637 $ 11,984 Net cash used in investing activities1 $ (6,015) $ (4,558) $ (8,584) $ (12,965) $ (17,722) Net cash provided by (used in) financing activities (22,828) 5,315 (1,400) (5,581) (17,039) Y/Y Change in Free Cash Flow +8.2 % NM +414.0 % +19.3 % +26.2 % 1 "Net Cash used in investing activities" includes payments for property and equipment, which is also included in our computation of free cash flow. NM = not meaningful 29
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 changes in currency exchange rates as the difference between current period activity translated using the current period's currency exchange rates and the comparable prior year period's currency exchange rates. Additionally, no currency exchange rate fluctuations are calculated for non-USD acquisitions until owned for 12 months. Throughout our discussion, we refer to the results of this calculation as the impact of currency exchange rate fluctuations. When we refer to constant currency operating results, this means operating results without the impact of the currency exchange rate fluctuations. The disclosure of constant currency amounts or results permits investors to better understand Walmart’s underlying performance without the effects of currency exchange rate fluctuations. The table below reflects the calculation of constant currency for net sales for the Walmart International segment for the trailing five quarters and operating income for the current quarter. Three Months Ended Walmart International (Dollars in millions) Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Net sales: As reported $ 27,575 $ 26,604 $ 27,596 $ 28,022 $ 32,419 Currency exchange rate fluctuations 901 226 (574) (1,357) (1,259) Net sales (cc) $ 28,476 $ 26,830 $ 27,022 $ 26,665 $ 31,160 PY Reported $ 26,997 $ 23,763 $ 24,350 $ 25,295 $ 27,575 % change (cc) +5.5 % +12.9 % +11.0 % +5.4 % +13.0 % Operating income: As reported $ 1,438 Currency exchange rate fluctuations $ (146) Operating income (cc) $ 1,292 PY Reported $ 289 % change (cc) +347.1 % 30
Non-GAAP measures – constant currency (cont.) Three Months Ended Consolidated (Dollars in millions) Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Total Revenue: As reported $ 164,048 $ 152,301 $ 161,632 $ 160,804 $ 173,388 Currency exchange rate fluctuations 917 230 (576) (1,366) (1,268) Total Revenue (cc) $ 164,965 $ 152,531 $ 161,056 $ 159,438 $ 172,120 PY Reported $ 152,871 $ 141,569 $ 152,859 $ 152,813 $ 164,048 % change (cc) +7.9 % +7.7 % +5.4 % +4.3 % +4.9 % Net sales: As reported $ 162,743 $ 151,004 $ 160,280 $ 159,439 $ 171,914 Currency exchange rate fluctuations 901 226 (574) (1,357) (1,259) Net sales (cc) $ 163,644 $ 151,230 $ 159,706 $ 158,082 $ 170,655 PY Reported $ 151,525 $ 140,288 $ 151,381 $ 151,469 $ 162,743 % change (cc) +8.0 % +7.8 % +5.5 % +4.4 % +4.9 % Operating income: As reported $ 5,561 $ 6,240 $ 7,316 $ 6,202 $ 7,254 Currency exchange rate fluctuations (57) (72) (124) (164) (146) Operating income (cc) $ 5,504 $ 6,168 $ 7,192 $ 6,038 $ 7,108 PY Reported $ 5,887 $ 5,318 $ 6,854 $ 2,695 $ 5,561 % change (cc) -6.5 % +16.0 % +4.9 % +124.0 % +27.8 % The table below reflects the calculation of constant currency for total revenues, net sales and operating income for the trailing five quarters. 31
Non-GAAP measures – adjusted operating expenses as a percentage of net sales Three Months Ended (Dollars in millions) Q4 FY23 Q4 FY22 Q1 FY24 Q1 FY23 Q2 FY24 Q2 FY23 Q3 FY24 Q3 FY23 Q4 FY24 Q4 FY23 Operating, selling, general and administrative expenses $ 33,064 $ 31,462 $ 30,777 $ 29,404 $ 32,466 $ 30,167 $ 33,419 $ 34,505 $ 34,309 $ 33,064 Less: Business reorganization and restructuring charges1 849 108 — — — — — — — 849 Less: Opioid legal charges2 — — — — 93 — — 3,325 — — Adjusted operating expenses $ 32,215 $ 31,354 $ 30,777 $ 29,404 $ 32,373 $ 30,167 $ 33,419 $ 31,180 $ 34,309 $ 32,215 Net Sales $ 162,743 $ 151,525 $ 151,004 $ 140,288 $ 160,280 $ 151,381 $ 159,439 $ 151,469 $ 171,914 $ 162,743 Operating, selling, general and administrative expenses as a percentage of net sales +20.3 % +20.8 % +20.4 % +21.0 % +20.3 % +19.9 % +21.0 % +22.8 % +20.0 % +20.3 % Adjusted operating expenses as a percentage of net sales +19.8 % +20.7 % +20.4 % +21.0 % +20.2 % +19.9 % +21.0 % +20.6 % +20.0 % +19.8 % Y/Y Change (bps) (89) NP (58) NP 27 NP 37 NP 16 NP 1Business reorganization and restructuring charges in the fourth quarter of fiscal 2023 primarily relate to compensation expenses incurred in connection with the strategic decisions made in the Walmart International segment. Business restructuring charges in the fourth quarter of fiscal 2022 primarily consist of severance and store closure related costs due to strategic decisions made in the Walmart International segment. 2Recorded in Corporate and support. NP = not provided 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 expenses calculated in accordance with GAAP. Management believes that adjusted operating expenses as a percentage of net sales is a meaningful measure to share with investors because it best allows comparison of performance with that of the comparable period. In addition, adjusted operating expenses as a percentage of net sales affords investors a view of what management considers Walmart’s core operating expenses and the ability to make a more informed assessment of such core operating expenses as compared with that of the prior year. The table below reflects the calculation of adjusted operating expenses as a percentage of net sales for the trailing five quarters. 32
Non-GAAP measures – adjusted operating income Three Months Ended Consolidated (Dollars in millions) Q4 FY23 Q4 FY22 Q1 FY24 Q1 FY23 Q2 FY24 Q2 FY23 Q3 FY24 Q3 FY23 Q4 FY24 Q4 FY23 Operating income: Operating income, as reported $ 5,561 $ 5,887 $ 6,240 $ 5,318 $ 7,316 $ 6,854 $ 6,202 $ 2,695 $ 7,254 $ 5,561 Business reorganization and restructuring charges1 849 108 — — — — — — — 849 Opioid legal charges2 — — — — 93 — — 3,325 — — Adjusted operating income $ 6,410 $ 5,995 $ 6,240 $ 5,318 $ 7,409 $ 6,854 $ 6,202 $ 6,020 $ 7,254 $ 6,410 Percent change3 +6.9 % NP +17.3 % NP +8.1 % NP +3.0 % NP +13.2 % NP Currency exchange rate fluctuations $ (39) — $ (72) — $ (124) $ — $ (164) $ — $ (146) $ — Adjusted operating income, constant currency $ 6,371 $ 5,995 $ 6,168 $ 5,318 $ 7,285 $ 6,854 $ 6,038 $ 6,020 $ 7,108 $ 6,410 Percent change3 +6.3 % NP +16.0 % NP +6.3 % NP +0.3 % NP +10.9 % NP 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 meaningful measure to share with investors because it best allows comparison of performance with that of the comparable period. In addition, adjusted operating income affords investors a view of what management considers Walmart’s core earnings performance and the ability to make a more informed assessment of such core earnings performance as compared with that of the prior year. When we refer to adjusted operating income in constant currency, this means adjusted operating results without the impact of the currency exchange rate fluctuations. The disclosure of constant currency amounts or results permits investors to better understand Walmart’s underlying performance without the effects of currency exchange rate fluctuations. The table below reflects the calculation of adjusted operating income and adjusted operating income in constant currency, when applicable, for the trailing five quarters. 1Business reorganization and restructuring charges in the fourth quarter of fiscal 2023 primarily relate to compensation expenses incurred in connection with the strategic decisions made in the Walmart International segment. Business restructuring charges in the fourth quarter of fiscal 2022 primarily consist of severance and store closure related costs due to strategic decisions made in the Walmart International segment. 2Recorded in Corporate and support. 3Change versus prior year comparable period. NP = not provided 33
Non-GAAP measures – adjusted operating income (cont.) Three Months Ended Walmart International (Dollars in millions) Q4 FY24 Q4 FY23 Operating income: Operating income, as reported $ 1,438 $ 289 Business reorganization and restructuring charges1 849 Adjusted operating income $ 1,438 $ 1,138 Percent change2 +26.4 % NP Currency exchange rate fluctuations $ (146) $ — Adjusted operating income, constant currency $ 1,292 $ 1,138 Percent change2 +13.5 % NP 1Business reorganization and restructuring charges in the fourth quarter of fiscal 2023 primarily relate to compensation expenses incurred in connection with strategic decisions made in the Walmart International segment. 2Change versus prior year comparable period. NP = not provided 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. 34
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 with GAAP (EPS), the most directly comparable financial measure calculated in accordance with GAAP. Management believes that Adjusted EPS is a meaningful measure to share with investors because it best allows comparison of the performance with that of the comparable period. In addition, Adjusted EPS affords investors a view of what management considers Walmart’s core earnings performance and the ability to make a more informed assessment of such core earnings performance with that of the prior year. We adjust for the unrealized and realized gains and losses on our equity and other investments each quarter because although the investments are strategic decisions for the company’s retail operations, management’s measurement of each strategy is primarily focused on the operational results rather than the fair value of such investments. Additionally, management does not forecast changes in the fair value of its equity and other investments. Accordingly, management adjusts EPS each quarter for the unrealized and realized gains and losses related to those investments. We have calculated Adjusted EPS for the three months and trailing five quarters as well as the prior year comparable periods by adjusting EPS for the relevant adjustments for each period presented. Three Months Ended Jan 31, 20243 Three Months Ended Jan 31, 20233 Percent Change Diluted earnings per share: Reported EPS $2.03 $2.32 -12.5% Adjustments: Pre-Tax Impact Tax Impact1,4 NCI Impact2 Net Impact Pre-Tax Impact Tax Impact1,4 NCI Impact2 Net Impact Unrealized and realized (gains) and losses on equity and other investments5,6 $(0.31) $0.08 $— $(0.23) $(1.43) $0.27 $— $(1.16) Business reorganization and restructuring charges — — — — 0.31 0.40 (0.16) 0.55 Net Adjustments $(0.23) $(0.61) Adjusted EPS $1.80 $1.71 +5.3% 1 Tax impact calculated based on nature of item, including any realizable deductions, and statutory rate in effect for relevant jurisdictions. 2 Calculated based on the ownership percentages of our noncontrolling interests, where applicable. 3 Individual components in the accompanying tables may include immaterial rounding. 4 The reported effective tax rate was 24.5% and 34.7% for the three months ended January 31, 2024 and January 31, 2023, respectively. Adjusted for the above items, the effective tax rate was 24.5% and 21.7% for the three months ended January 31, 2024 and January 31, 2023, respectively 5For the three months ended January 31, 2024, net gains were primarily driven by an increase in the underlying stock price of our investment in Symbotic and an increase in the fair value of our Asda debt securities, partially offset by a decrease in the underlying stock price of our investment in JD.com. 6For the three months ended January 31, 2023, net gains were primarily driven by an increase in the underlying stock price of our investment in JD.com. 35
Non-GAAP measures – adjusted EPS (cont.) Three Months Ended Oct 31, 20233 Three Months Ended Oct 31, 20223 Percent Change Diluted earnings per share: Reported EPS $0.17 $(0.66) NM Adjustments: Pre-Tax Impact Tax Impact1 NCI Impact2 Net Impact Pre-Tax Impact Tax Impact1 NCI Impact2 Net Impact Unrealized and realized (gains) and losses on equity and other investments $1.76 $(0.41) $0.01 $1.36 $1.34 $(0.24) $0.01 $1.11 Opioid legal charges — — — — 1.22 (0.17) — 1.05 Net Adjustments $1.36 $2.16 Adjusted EPS4 $1.53 $1.50 +2.0% Three Months Ended Jul 31, 20233 Three Months Ended Jul 31, 20223 Percent Change Diluted earnings per share: Reported EPS $2.92 $1.88 +55.3% Adjustments: Pre-Tax Impact Tax Impact1 NCI Impact2 Net Impact Pre-Tax Impact Tax Impact1 NCI Impact2 Net Impact Unrealized and realized (gains) and losses on equity and other investments $(1.44) $0.33 $— $(1.11) $0.14 $(0.02) $(0.01) $0.11 Incremental opioid settlement expense 0.04 (0.01) — 0.03 — — — — Gain on sale of equity method investment in Brazil — — — — (0.16) — — (0.16) Discrete tax item — — — — — (0.06) — (0.06) Net Adjustments $(1.08) $(0.11) Adjusted EPS $1.84 $1.77 +4.0% 1Tax impact calculated based on nature of item, including any realizable deductions, and statutory rate in effect for relevant jurisdictions. 2Calculated based on the ownership percentages of our noncontrolling interests, where applicable. 3Individual components in the accompanying tables may include immaterial rounding. 4Adjusted EPS for the three months ended October 31, 2022 was calculated using weighted average shares outstanding of 2,720 million, which includes the dilutive impact of share-based payment awards. 36
Non-GAAP measures – adjusted EPS (cont.) Three Months Ended Apr 30, 20233 Three Months Ended Apr 30, 20223 Percent Change Diluted earnings per share: Reported EPS $0.62 $0.74 -16.2% Adjustments: Pre-Tax Impact Tax Impact1 NCI Impact2 Net Impact Pre-Tax Impact Tax Impact1 NCI Impact2 Net Impact Unrealized and realized (gains) and losses on equity and other investments $1.13 $(0.27) $(0.01) $0.85 $0.71 $(0.15) $— $0.56 Adjusted EPS $1.47 $1.30 +13.1% Three Months Ended Jan 31, 20233 Three Months Ended Jan 31, 20223 Percent Change Diluted earnings per share: Reported EPS $2.32 $1.28 +81.3% Adjustments: Pre-Tax Impact Tax Impact1 NCI Impact2 Net Impact Pre-Tax Impact Tax Impact1 NCI Impact2 Net Impact Unrealized and realized (gains) and losses on equity and other investments $(1.43) $0.27 $— $(1.16) $0.22 $(0.05) $0.02 $0.19 Business reorganization and restructuring charges 0.31 0.40 (0.16) 0.55 0.08 (0.02) — 0.06 Net Adjustments $(0.61) $0.25 Adjusted EPS $1.71 $1.53 +11.8% 1Tax impact calculated based on nature of item, including any realizable deductions, and statutory rate in effect for relevant jurisdictions. 2Calculated based on the ownership percentages of our noncontrolling interests, where applicable. 3Individual components in the accompanying tables may include immaterial rounding. 37
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: Three Months Ended Q4 FY24 Q4 FY23 (Dollars in millions) 2024 2023 Consolidated net income attributable to Walmart $ 5,494 $ 6,275 Consolidated net (income) loss attributable to noncontrolling interest (184) 466 Provision for income taxes 1,840 3,093 Other (gains) and losses (813) (3,848) Interest, Net 549 507 Operating Income $ 7,254 $ 5,561 + Depreciation and Amortization 3,117 2,811 + Business reorganization and restructuring charges — 849 Adjusted EBITDA $ 10,371 $ 9,221 Net Sales $ 171,914 $ 162,743 Consolidated net income margin 3.2 % 3.9 % Adjusted EBITDA margin 6.0 % 5.7 % We include net income (loss) and net income (loss) margin, which are calculated in accordance with U.S. generally accepted accounting principle as well as adjusted EBITDA and adjusted EBITDA margin to provide meaningful information about our operational efficiency compared with our competitors by excluding the impact of certain items. We calculate adjusted EBITDA as earnings before interest, taxes, depreciation and amortization. We also exclude other gains and losses, which is primarily comprised of fair value adjustments on our investments which management does not believe are indicative of our core business performance. From time to time, we will also adjust certain items from operating income, which we believe is meaningful because it best allows comparison of the performance with that of the comparable period. Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by consolidated net sales. Adjusted EBITDA and adjusted EBITDA margin are considered non-GAAP financial measures. Management believes, however, that these measures provide meaningful information about our operational efficiency by excluding the impact of differences in tax jurisdictions and structures, debt levels, capital investments and other items which management does not believe are indicative of our core business performance. We consider net income (loss) to be the financial measure computed in accordance with GAAP that is the most directly comparable financial measure to our calculation of adjusted EBITDA. We consider net income (loss) margin to be the financial measure computed in accordance with GAAP that is the most directly comparable financial measure to our calculation of adjusted EBITDA margin. Although adjusted EBITDA and adjusted EBITDA margin are standard financial measures, numerous methods exist for calculating a company’s adjusted EBITDA and adjusted EBITDA margin. As a result, the method used by management to calculate our adjusted EBITDA and adjusted EBITDA margin may differ from the methods used by other companies to calculate similarly titled measures. Net income (loss) margin was 3.2% and 3.9% for the three months ended January 31, 2024 and 2023, respectively. The decrease in net income margin was primarily due to higher sales. Adjusted EBITDA margin was 6.0% and 5.7% for the three months ended January 31, 2024 and 2023, respectively. The increase in Adjusted EBITDA margin was primarily due to adjusted operating income growth outpacing sales growth. 38
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- DefinitionFor the EDGAR submission types of Form 8-K: the date of the report, the date of the earliest event reported; for the EDGAR submission types of Form N-1A: the filing date; for all other submission types: the end of the reporting or transition period. The format of the date is YYYY-MM-DD.
| Name: |
dei_DocumentPeriodEndDate |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:dateItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionThe type of document being provided (such as 10-K, 10-Q, 485BPOS, etc). The document type is limited to the same value as the supporting SEC submission type, or the word 'Other'.
| Name: |
dei_DocumentType |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:submissionTypeItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionAddress Line 1 such as Attn, Building Name, Street Name
| Name: |
dei_EntityAddressAddressLine1 |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- Definition
+ References
+ Details
| Name: |
dei_EntityAddressCityOrTown |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionCode for the postal or zip code
| Name: |
dei_EntityAddressPostalZipCode |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionName of the state or province.
| Name: |
dei_EntityAddressStateOrProvince |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:stateOrProvinceItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionA unique 10-digit SEC-issued value to identify entities that have filed disclosures with the SEC. It is commonly abbreviated as CIK. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
| Name: |
dei_EntityCentralIndexKey |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:centralIndexKeyItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionIndicate if registrant meets the emerging growth company criteria. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
| Name: |
dei_EntityEmergingGrowthCompany |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionCommission file number. The field allows up to 17 characters. The prefix may contain 1-3 digits, the sequence number may contain 1-8 digits, the optional suffix may contain 1-4 characters, and the fields are separated with a hyphen.
| Name: |
dei_EntityFileNumber |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:fileNumberItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionTwo-character EDGAR code representing the state or country of incorporation.
| Name: |
dei_EntityIncorporationStateCountryCode |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:edgarStateCountryItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionThe exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
| Name: |
dei_EntityRegistrantName |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionThe Tax Identification Number (TIN), also known as an Employer Identification Number (EIN), is a unique 9-digit value assigned by the IRS. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
| Name: |
dei_EntityTaxIdentificationNumber |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:employerIdItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionLocal phone number for entity.
| Name: |
dei_LocalPhoneNumber |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 13e
-Subsection 4c
| Name: |
dei_PreCommencementIssuerTenderOffer |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
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| Period Type: |
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| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 14d
-Subsection 2b
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| Namespace Prefix: |
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| Data Type: |
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| Balance Type: |
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| Period Type: |
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|
| X |
- DefinitionTitle of a 12(b) registered security. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b
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| Namespace Prefix: |
dei_ |
| Data Type: |
dei:securityTitleItemType |
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| Period Type: |
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| X |
- DefinitionName of the Exchange on which a security is registered. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection d1-1
| Name: |
dei_SecurityExchangeName |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:edgarExchangeCodeItemType |
| Balance Type: |
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| Period Type: |
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|
| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as soliciting material pursuant to Rule 14a-12 under the Exchange Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Section 14a
-Number 240
-Subsection 12
| Name: |
dei_SolicitingMaterial |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
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| Period Type: |
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| X |
- DefinitionTrading symbol of an instrument as listed on an exchange.
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| Namespace Prefix: |
dei_ |
| Data Type: |
dei:tradingSymbolItemType |
| Balance Type: |
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| Period Type: |
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| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as written communications pursuant to Rule 425 under the Securities Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Securities Act
-Number 230
-Section 425
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| Namespace Prefix: |
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| Data Type: |
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| Balance Type: |
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| Period Type: |
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| X |
- Details
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| Data Type: |
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| Namespace Prefix: |
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| Balance Type: |
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| Namespace Prefix: |
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| Balance Type: |
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