Company reports Q2 FY18 GAAP EPS of $0.96; Adjusted EPS(3) of $1.08

  • Total revenue was $123.4 billion, an increase of $2.5 billion, or 2.1%. Excluding currency3, total revenue was $124.4 billion, an increase of $3.5 billion, or 2.9%.
  • Walmart U.S. comp sales1 increased 1.8% with traffic growth of 1.3%, marking the twelfth consecutive quarter with positive comp sales.
  • E-commerce growth at Walmart U.S. remained strong, led by organic growth through Walmart.com. Net sales and GMV grew 60% and 67%, respectively, as customers continued to respond well to new initiatives and an expanded assortment of more than 67 million SKUs.
  • Net sales at Walmart International were $28.3 billion, a decrease of 1.0%. Excluding currency3, net sales were $29.3 billion, an increase of 2.5%. Nine of eleven markets posted positive comp sales.
  • Second quarter EPS included a charge of $0.17 for loss on extinguishment of debt in connection with the company's recently completed debt tender offers. This discrete charge was partially offset by the gain from the sale of the Suburbia business in Mexico, which benefited EPS by $0.05.

View earnings presentation

Key results

(Amounts in millions, except as noted)

 

 Q2 FY18

 Q2 FY17

 $ Change

 % Change

Revenue

$123,355

$120,854

$2,501

2.1%

Revenue (constant currency)3

$124,395

$120,854

$3,541

2.9%

Operating income

$5,969

$6,165

-$196

-3.2%

Operating income (constant currency)3

$6,069

$6,165

-$96

-1.6%


Free Cash Flow

YTD FY18

$ Change

Returns to Shareholders

Q2 FY18

% Change

Operating cash flow

$11,360

-$3,571

Dividends

$1,539

-1.3%

Capital expenditures

$4,423

-$196

Share repurchases4

$2,262

6.8%

Free cash flow3

$6,937

-$3,375

Total

$3,801

3.4%


Guidance

  • Fiscal year 2018 GAAP EPS: $4.18 to $4.28
  • Fiscal year 2018 adjusted EPS1: $4.30 to $4.40
  • Third quarter fiscal year 2018 EPS: $0.90 to $0.98
  • Comp sales for the 13-week period ending Oct. 27, 2017:
    • Walmart U.S. (ex. fuel)1: +1.5% to +2.0%
    • Sam's Club (ex. fuel)1: +1.0% to +1.5%

1 Represents Walmart U.S. comparable sales excluding fuel. Including fuel, Walmart U.S. comparable sales grew 1.9%. See additional information at the end of this release regarding non-GAAP financial measures.
2 GMV represents the total U.S. dollar volume of merchandise sold or services rendered for all transactions, including marketplace transactions, that are generally initiated through our eCommerce platforms or include our owned inventory sold on other third party platforms. For additional information, visit stock.walmart.com.
3 See additional information at the end of this release regarding non-GAAP financial measures.
4 $4.8 billion remaining of $20 billion authorization approved in October 2015. The company repurchased approximately 30 million shares in Q2 fiscal 2018.

Segment results

Walmart U.S.


 

 Q2 FY18

Q2 FY17

$ Change

 % Change

Net sales

$78,738

$76,241

$2,497

3.3%

Comp sales (ex. fuel)1,2

1.8%

1.6%

20 bps

N/A

Traffic

1.3%

1.2%

10 bps

N/A

Ticket

0.5%

0.4%

10 bps

N/A

E-commerce

~70 bps

~40 bps

~30 bps

N/A

Operating income

$4,618

$4,519

$99

2.2%


Walmart International


 

 Q2 FY18

 Q2 FY17

 $ Change

 % Change

Net sales

$28,331

$28,621

-$290

-1.0%

Net sales (constant currency)1

$29,326

$28,621

$705

2.5%

Operating income

$1,592

$1,727

-$135

-7.8%

Operating income (constant currency)1

$1,692

$1,727

-$35

-2.0%


Sam's Club


 

  Q2 FY18

  Q2 FY17

  $ Change

  % Change

Net sales

$14,880

$14,543

$337

2.3%

Comp sales (ex. fuel)1,2

1.2%

0.6%

60 bps

N/A

Traffic

2.1%

-0.4%

250 bps

N/A

Ticket

-0.9%

1.0%

-190 bps

N/A

E-commerce

~80 bps

~60 bps

~20 bps

N/A

Operating income

$404

$472

-$68

-14.4%

1 See additional information at the end of this release regarding non-GAAP financial measures.
2 13-week period ended July 28, 2017, compared to 13-week period ended July 29, 2016, and excludes fuel.

Wal-Mart Stores, 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, over 260 million customers and members visit our more than 11,600 stores under 59 banners in 28 countries and e-commerce websites in 11 countries. With fiscal year 2017 revenue of $485.9 billion, Walmart employs approximately 2.3 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/walmart and on Twitter at http://twitter.com/walmart.

Investor Relations contact
Steve Schmitt (479) 258-7172

Media Relations contact
Randy Hargrove (800) 331-0085

Along with this press release, Walmart makes available a recorded call with executive leaders and a financial presentation to review business results, provide strategic updates, and comment on expectations for the future. We provide that call in both audio form and in a written transcript. Details on accessing the call are as follows:

  • 877-523-5612 (U.S. and Canada)
  • 201-689-8483 (other countries)
  • Passcode: 9256278 (Walmart)

The call is archived at stock.walmart.com.