November 15, 2018

Adjusted EPS2 of $1.08, Walmart now expects FY19 GAAP EPS of $2.26 to $2.36, Walmart raises guidance for FY19 Adjusted EPS2 to $4.75 to $4.85

  • Total revenue was $124.9 billion, an increase of $1.7 billion, or 1.4%. Excluding currency2, total revenue was $126.1 billion, an increase of $2.9 billion, or 2.4%.
  • Walmart U.S. comp sales1 increased 3.4% in the period and 6.1% on a two-year stack with broad-based strength and market share gains in key categories, according to Nielsen and The NPD Group.
  • Walmart U.S. omnichannel progress continues as grocery pickup is now available in nearly 2,100 locations and grocery delivery is available in nearly 600 locations.
  • Sam's Club comp sales1 increased 3.2%3, and eCommerce sales grew 32%. Membership trends continue to improve.
  • Net sales at Walmart International were $28.8 billion, a decline of 2.6%. Excluding currency2, net sales were $30.0 billion, an increase of 1.6%. Comp sales were positive in nine of 10 markets.
  • Adjusted EPS2 excludes the impact of three items:

An unrealized loss of $0.48 on the company's equity investment in JD.comA charge of $0.03 for foreign currency upon finalizing the sale of a majority stake in Walmart BrazilA benefit of $0.01 due to an adjustment in the provisional amount related to Tax Reform

View Earnings Presentation

Key results
(Amounts in billions, except as noted. Dollar and percentage changes may not recalculate due to rounding.)

Walmart

Q3 FY19Q3 FY18$ Change% Change
Revenue$124.9$123.2$1.71.4%
Revenue (constant currency)2$126.1$123.2$2.92.4%
Operating income$5.0$4.8$0.24.7%
Operating income (constant currency)2$5.0$4.8$0.35.9%


Free Cash Flow

YTD FY19

$ Change


Returns to Shareholders

Q3 FY19

% Change

Operating cash flow

$17.3

$0.2


Dividends

$1.5

0.3%

Capital expenditures

$7.0

$0.1


Share repurchases4

$2.3

4.9%

Free cash flow2

$10.3

$0.1


Total

$3.8

3.0%


1 13-week period ended October 26, 2018 compared to 13-week period ended October 27, 2017, and excludes fuel. See Supplemental Financial Information for additional information.
2 See additional information at the end of this release regarding non-GAAP financial measures.
3 Tobacco sales negatively impacted Sam's Club's comparable sales by approximately 250 basis points.
4 $14.6 billion remaining of the $20 billion authorization approved in October 2017. The company repurchased approximately 24.4 million shares in Q3.


Guidance
Walmart Inc. raises its expectations for Walmart U.S. comp sales, excluding fuel, for the 52-week period ending Jan. 25, 2019. Additionally, the company updates fiscal year 2019 GAAP EPS guidance and raises its fiscal year 2019 Adjusted EPS1 guidance due to the company's performance year-to-date and outlook on the remainder of the year. Assumptions in today’s guidance include that economic conditions, currency rates and the tax and regulatory landscape in our largest markets remain generally consistent. Additionally, due to unpredictability in stock price fluctuations, guidance for EPS1 assumes no further change for the company's equity investment in JD.com.


  • Comp sales, excluding fuel, at Walmart U.S.: At least 3% versus previous guidance of "about 3%"
  • Fiscal year 2019 GAAP EPS: $2.26 to $2.36 versus previous guidance of $2.65 to $2.80
  • Fiscal year 2019 Adjusted EPS1: $4.75 to $4.85 versus previous guidance of $4.65 to $4.80

Segment results
(Amounts in billions, except as noted. Dollar and percentage changes may not recalculate due to rounding.)

In the first quarter of fiscal 2019, the company revised its corporate overhead allocations to the operating segments. Accordingly, previous segment operating income was recast to be comparable to the current period.

Walmart U.S.

Q3 FY19Q3 FY18$ Change% Change
Net sales$80.6$77.7$2.93.7%
Comp sales (ex. fuel)23.4%2.7%70 bpsN/A
Traffic1.2%1.5%-30 bpsN/A
Ticket2.2%1.2%100 bpsN/A
eCommerce~140 bps~80 bps~60 bpsN/A
Operating income$3.9$3.8$0.12.9%


Walmart International

Q3 FY19Q3 FY18$ Change% Change
Net sales$28.8$29.5-$0.8-2.6%
Net sales (constant currency)1$30.0$29.5$0.51.6%
Operating income$1.2$1.2$—-3.7%
Operating income (constant currency)1$1.2$1.2$—1.0%


Sam's Club

Q3 FY19Q3 FY18$ Change% Change
Net sales$14.5$14.9-$0.3-2.3%
Comp sales (ex. fuel)23.2%2.8%40 bpsN/A
Traffic6.2%3.6%260 bpsN/A
Ticket-3.0%-0.8%-220 bpsN/A
eCommerce~130 bps~80 bps~50 bpsN/A
Operating income$0.4$0.4-$0.1-12.5%

1 See additional information at the end of this release regarding non-GAAP financial measures.
2 13-week period ended October 26, 2018 compared to 13-week period ended October 27, 2017, and excludes fuel.

About Walmart
Walmart Inc. (NYSE: WMT) helps people around the world save money and live better - anytime and anywhere - in retail stores, online, and through their mobile devices. Each week, nearly 265 million customers and members visit our more than 11,200 stores under 55 banners in 27 countries and eCommerce websites. With fiscal year 2018 revenue of $500.3 billion, Walmart employs over 2.2 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 http://corporate.walmart.com, on Facebook at http://facebook.com/walmartand on Twitter at http://twitter.com/walmart.

Investor Relations contact
Dan Binder (479) 258-7172

Media Relations contact
Randy Hargrove (800) 331-0085

Forward-Looking Statements
This release contains statements as to Walmart management's guidance regarding earnings per share and adjusted earnings per share for the fiscal year ending January 31, 2019 and comparable sales (excluding fuel) for Walmart U.S. for the 52 weeks ending January 25, 2019. Walmart believes such statements are "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. Walmart's actual results may differ materially from the guidance provided as a result of changes in circumstances, assumptions not being realized or other risks, uncertainties and factors including:

  • economic, geo-political, capital markets and business conditions, trends and events around the world and in the markets in which Walmart operates;
  • currency exchange rate fluctuations, changes in market interest rates and commodity prices;
  • unemployment levels; competitive pressures; 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;
  • consumer enrollment in health and drug insurance programs and such programs' reimbursement rates;
  • the amount of Walmart's net sales denominated in the U.S. dollar and various foreign currencies;
  • the impact of acquisitions, investments, divestitures, store or club closures, and other strategic decisions;
  • Walmart's ability to successfully integrate acquired businesses, including within the eCommerce space;
  • Walmart's effective tax rate and the factors affecting Walmart's 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, trade agreements, trade restrictions and tariff rates;
  • customer traffic and average ticket in Walmart's stores and clubs and on its eCommerce websites;
  • the mix of merchandise Walmart sells, the cost of goods it sells and the shrinkage it experiences;
  • the amount of Walmart's total sales and operating expenses in the various markets in which it operates;
  • transportation, energy and utility costs and the selling prices of gasoline and diesel fuel;
  • supply chain disruptions and disruptions in seasonal buying patterns;
  • consumer acceptance of and response to Walmart's stores, clubs, digital platforms, programs, merchandise offerings and delivery methods;
  • cyber security events affecting Walmart and related costs;
  • developments in, outcomes of, and costs incurred in legal or regulatory proceedings to which Walmart is a party;
  • casualty and accident-related costs and insurance costs;
  • the turnover in Walmart's workforce and labor costs, including healthcare and other benefit costs;
  • changes in accounting estimates or judgments;
  • the level of public assistance payments;
  • natural disasters, public health emergencies, civil disturbances, and terrorist attacks; and
  • Walmart's expenditures for Foreign Corrupt Practices Act "FCPA" and other compliance related costs, including the adequacy of the accrual with respect to this matter.

Such risks, uncertainties and factors also include the risks relating to Walmart’s strategy, operations and performance and the financial, legal, tax, regulatory, compliance, reputational and other risks discussed in Walmart’s most recent annual report on Form 10-K and subsequent quarterly reports on Form 10-Q filed with the SEC. Walmart urges 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 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 Walmart’s operations or financial performance. The forward-looking statements made in this release are as of the date of this release. Walmart undertakes no obligation to update these forward-looking statements to reflect subsequent events or circumstances.