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Walmart U.S. Q4 comps(1) grew 2.6% and Walmart U.S. eCommerce sales grew 23%, Walmart U.S. full year comps(1) grew 2.1% and Walmart U.S. eCommerce sales grew 44%

Press Kit

Fiscal year 2018 GAAP EPS of $3.28; Adjusted EPS2 of $4.42, Company expects fiscal 2019 EPS of $4.75 to $5.00


Fourth-quarter highlights

  • GAAP EPS was $0.73 and adjusted EPS2 was $1.33.
  • Total revenue was $136.3 billion, an increase of $5.3 billion, or 4.1%. Excluding currency2, total revenue was $135.1 billion, an increase of $4.1 billion, or 3.1%.
  • Walmart U.S. comp sales1,2 increased 2.6%, and comp traffic increased 1.6%. On a two-year stack, comp sales growth of 4.4% marked the best performance in eight years.
  • eCommerce sales and GMV3 at Walmart U.S. increased 23% and 24%, respectively.
  • Sam's Club comp sales, excluding fuel2, increased 2.4% led by comp traffic growth of 4.3%.
  • Net sales at Walmart International were $33.1 billion, an increase of 6.7%. Excluding currency2, net sales were $31.9 billion, an increase of 2.8%. Nine of eleven markets posted positive comp sales, including our four largest markets.
  • Consolidated operating income was $4.5 billion, a decrease of 28%. Excluding the impact of discrete charges detailed in this press release, operating income would have decreased less than 1.0 percent.

Fiscal 2018 highlights

  • Total revenue was $500.3 billion, an increase of $14.5 billion, or 3.0%. Excluding currency2, total revenue was $500.9 billion, an increase of $15.1 billion, or 3.1%.
  • eCommerce sales and GMV3 at Walmart U.S. increased 44% and 47%, respectively.
  • Consolidated operating income was $20.4 billion, a decrease of 10.2%. Excluding the impact of discrete charges detailed in this press release, operating income would have been relatively flat.
  • The company generated $28.3 billion in operating cash flow and returned $14.4 billion to shareholders through dividends and share repurchases.

View Earnings Presentation


Key results


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

Walmart

Q4 FY18 Q4 FY17 $ Change % Change FY18 FY17 $ Change % Change
Revenue $136.30 $130.90 $5.30 4.10% $500.30 $485.90 $14.50 3.00%
Revenue (constant currency)2 $135.10 $130.90 $4.10 3.10% $500.90 $485.90 $15.10 3.10%
Operating income $4.50 $6.20 -$1.70 -28.00% $20.40 $22.80 -$2.30 -10.20%
Operating income (constant currency)2 $4.40 $6.20 -$1.80 -29.30% $20.50 $22.80 -$2.30 -9.90%


1 Represents Walmart U.S. comparable sales excluding fuel. Including fuel, Walmart U.S. comparable sales grew 2.7% and 2.2% for Q4 and the full year, respectively.
2 See additional information at the end of this release regarding non-GAAP financial measures.
3 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.

Free Cash Flow FY18 $ Change Returns to Shareholders FY18 % Change
Operating cash flow $28.30 -$3.30 Dividends $6.10 -1.50%
Capital expenditures $10.10 -$0.60 Share repurchases3 $8.30 0.00%
Free cash flow2 $18.30 -$2.80 Total $14.40 -0.60%


Tax Reform


On December 22, 2017, the 2017 Tax Cuts and Jobs Act (the "Tax Act") was enacted into law and contains several key tax provisions that affected us, including a one-time mandatory transition tax on accumulated foreign earnings and a reduction of the U.S. corporate income tax rate to 21 percent, effective January 1, 2018. The Securities and Exchange Commission (SEC) staff subsequently issued Staff Accounting Bulletin No. 118 (SAB 118), allowing companies to record provisional amounts during a measurement period not to extend beyond one year of the enactment date while the accounting impact is still under analysis. We are currently analyzing the accounting impact of the Tax Act, but our analysis is incomplete. As a result, we have recorded a provisional benefit of $207 million for both the fourth quarter and full year. We expect to complete our work within the allowed measurement period.

Fiscal 2019 Full Year Guidance


The following guidance reflects the company's expectations for full year fiscal 2019.

  • Comp sales for the 52-week period ending Jan. 25, 2019:

Walmart U.S. (ex. fuel1): at least +2.0%
Sam's Club (ex. fuel & tobacco1): +3.0% to +4.0%
Excludes tobacco, which represents a negative impact to comp sales of approximately 400 basis points

  • Consolidated net sales growth in constant currency of 1.5% to 2.0%, negatively impacted by:

Sam's Club closures and the decision to remove tobacco from certain clubs
Decision to wind-down first-party eCommerce business in Brazil and the divestiture of Suburbia

  • Walmart U.S. eCommerce sales growth: approximately 40%
  • EPS: $4.75 to $5.00, including a benefit of approximately $0.05 from currency based on current rates
  • Capital expenditures: approximately $11.0 billion
  • Effective tax rate: between 24% and 26%

Segment results


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

Walmart U.S.

Q4 FY18 Q4 FY17 $ Change % Change FY18 FY17 $ Change % Change
Net sales $86.60 $83.70 $2.80 3.40% $318.50 $307.80 $10.60 3.50%
Comp sales (ex. fuel)1,2 2.60% 1.80% 80 bps N/A 2.10% 1.40% 70 bps N/A
Traffic 1.60% 1.40% 20 bps N/A NP NP NP NP
Ticket 1.00% 0.40% 60 bps N/A NP NP NP NP
eCommerce ~60 bps ~40 bps ~20 bps N/A NP NP NP NP
Operating income $5.00 $5.00 $— -0.90% $17.90 $17.70 $0.10 0.70%


1 See additional information at the end of this release regarding non-GAAP financial measures.
2 13-week period ended Jan. 26, 2018, compared to 13-week period ended Jan. 27, 2017, and excludes fuel.
3 $18.8 billion remaining of $20 billion authorization approved in October 2017. The company repurchased approximately 105 million shares in fiscal 2018.

Walmart International

Q4 FY18 Q4 FY17 $ Change % Change FY18 FY17 $ Change % Change
Net sales $33.10 $31.00 $2.10 6.70% $118.10 $116.10 $1.90 1.70%
Net sales (constant currency)1 $31.90 $31.00 $0.90 2.80% $118.60 $116.10 $2.50 2.10%
Operating income $1.30 $1.50 -$0.20 -10.90% $5.40 $5.80 -$0.40 -7.10%
Operating income (constant currency)1 $1.30 $1.50 -$0.20 -16.10% $5.40 $5.80 -$0.30 -5.90%


Sam's Club

Q4 FY18 Q4 FY17 $ Change % Change FY18 FY17 $ Change % Change
Net sales $15.50 $15.00 $0.50 3.30% $59.20 $57.40 $1.90 3.20%
Comp sales (ex. fuel)1,2 2.40% 2.40% 0 bps N/A 2.00% 1.10% 90 bps N/A
Traffic 4.30% 1.20% 310 bps N/A NP NP NP NP
Ticket -1.90% 1.20% -310 bps N/A NP NP NP NP
eCommerce ~80 bps ~80 bps ~0 bps N/A NP NP NP NP
Operating income -$0.30 $0.40 -$0.70 -172.60% $1.00 $1.70 -$0.70 -41.20%


Net EPS impact of discrete items
The net EPS impact of certain discrete items included in the company's reported fourth quarter and fiscal year results was -$0.601 and -$1.141 per share, respectively. The discrete items and the respective EPS impact, net of tax1, included in the reported results were as follows:

Q4 fiscal year 2018, net of tax3  
Restructuring charges4 -0.28
Loss on extinguishment of debt -0.21
Asset impairments and write-offs5 -0.12
Associate lump sum bonus -0.09
U.S. tax reform benefit 0.07
Legal settlement recovery 0.03
-0.6
Fiscal year 2018, net of tax3  
Loss on extinguishment of debt -0.67
Restructuring charges4 -0.28
Asset impairments and write-offs5 -0.16
FCPA accrual -0.09
Associate lump sum bonus -0.09
U.S. tax reform benefit 0.07
Gain on sale of Suburbia 0.05
Legal settlement recovery 0.03
-1.14

During fiscal year 2017, the net impact to EPS from discrete items included in the company's reported fourth quarter and full year results from continuing operations was -$0.081 and $0.061 per share. [Note: Details provided in press release issued Feb. 21, 2017.]

1 See additional information at the end of this release regarding non-GAAP financial measures.
2 13-week period ended Jan. 26, 2018, compared to 13-week period ended Jan. 27, 2017, and excludes fuel.
3 Calculated based on nature of item and statutory rate in effect for relevant jurisdiction.
4 Restructuring charges include $0.20 for restructurings in the U.S., primarily relating to Sam's Club store closures and Home Office severance, and $0.08 for Walmart International, primarily due to the winding down of the first party Brazil eCommerce operations.
5 Asset impairments and write-offs for Q4 include $0.08 of impairment charges due to decisions to discontinue certain real estate projects at Walmart U.S. and Sam's Club and technology assets at Corporate, and $0.04 for the write-off of certain assets at Walmart International. Fiscal year 2018 also includes $0.04 related to our Q3 decision to exit certain properties in a Walmart International market.

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 270 million customers and members visit our more than 11,700 stores under 59 banners in 28 countries and eCommerce websites. With fiscal year 2018 revenue of $500.3 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.