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Walmart U.S. Q4 Comp Sales(1) Grew 4.2% and Walmart U.S. eCommerce Sales Grew 43%, Q4 2019 GAAP EPS of $1.27

Press Kit

Adjusted EPS2 of $1.41, Fiscal year 2019 GAAP EPS of $2.26; Adjusted EPS2 of $4.91, Company reiterates fiscal 2020 guidance

Fourth-quarter highlights

  • Total revenue was $138.8 billion, an increase of $2.5 billion, or 1.9%. Excluding currency2, total revenue was $140.5 billion, an increase of $4.2 billion, or 3.1%.
  • Walmart U.S. comp sales1 on a two-year stack of 6.8% is the strongest growth in 9 years.
  • Walmart U.S. eCommerce continued to benefit from the expansion of grocery pickup and delivery and a broader assortment on Walmart.com.
  • Sam's Club comp sales1 increased 3.3%3, and eCommerce sales grew 21%.
  • Net sales at Walmart International were $32.3 billion, a decline of 2.3%. Excluding currency2, net sales were $34.0 billion, an increase of 2.7%.
  • Adjusted EPS2 excludes the effects of two items:
    • A charge of $0.17 due to an adjustment in the provisional amount related to Tax Reform
    • An unrealized gain of $0.03 on the company's equity investment in JD.com

Fiscal 2019 highlights

  • Total revenue was $514.4 billion, an increase of $14.1 billion, or 2.8%. Excluding currency2, total revenue was $515.1 billion, an increase of $14.8 billion, or 3.0%.
  • Walmart U.S. comp sales1 increased 3.6%. Grocery pickup and delivery are available in more than 2,100 and nearly 800 locations, respectively.
  • Walmart U.S. eCommerce sales increased 40%. Net Promoter Score and the company's Customer Value Index continue to improve.
  • The company generated $27.8 billion in operating cash flow and returned $13.5 billion to shareholders through dividends and share repurchases.
  • Adjusted EPS2 excludes the effects of three items:
    • A charge of $1.54 related to the sale of a majority stake in Walmart Brazil
    • An unrealized loss of $0.95 on the company's equity investment in JD.com
    • A charge of $0.16 due to an adjustment in the provisional amount related to Tax Reform

Key results

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

Walmart

Q4 FY19 Q4 FY18 $ Change % Change FY19 FY18 $ Change % Change
Revenue $138.8 $136.3 $2.5 1.9% $514.4 $500.3 $14.1 2.8%
Revenue (constant currency)2 $140.5 $136.3 $4.2 3.1% $515.1 $500.3 $14.8 3.0%
Operating income $6.1 $4.5 $1.6 35.8% $22.0 $20.4 $1.5 7.4%
Operating income (constant currency)2 $6.2 $4.5 $1.7 37.9% $22.0 $20.4 $1.5 7.4%

  

Free Cash Flow1

FY19

$ Change

Returns to Shareholders

FY19

% Change

Operating cash flow

$27.8

-$0.6

Dividends

$6.1

-0.3%

Capital expenditures

$10.3

$0.3

Share repurchases2

$7.4

-10.7%

Free cash flow1

$17.4

-$0.9

Total

$13.5

-6.3%

1 13-week period ended January 25, 2019 compared to 13-week period ended January 26, 2018, 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 affected Sam's Club's comparable sales by approximately 200 basis points.

Fiscal 2020 full year guidance
The company reiterates the following guidance, which was originally provided at its meeting for the investment community on October 16, 2018. Assumptions in the guidance include that economic conditions, currency rates and the tax and regulatory landscape in our largest markets remain generally consistent. Additionally, the guidance assumes no further change in fair value of the company's equity investment in JD.com.

Metric

FY20 Guidance

Consolidated net sales growth

At least 3 percent in constant currency, affected:
• Positively by the acquisition of Flipkart
• Negatively by deconsolidation of Walmart Brazil
• Negatively by planned tobacco sales reduction at Sam’s Club

Comp sales growth

• Walmart U.S.: +2.5 percent to +3 percent, excluding fuel

• Sam’s Club: around +1 percent, excluding fuel; around +3 percent, excluding fuel and tobacco

Walmart U.S. eCommerce net sales growth

Around 35 percent

Walmart International net sales growth

Around 5 percent in constant currency

Consolidated Operating Income

• Decline by a low single-digit percentage range, including Flipkart

• Increase by a low single-digit percentage range, excluding Flipkart

EPS

• Decline by a low single-digit percentage range compared with FY19 adjusted EPS3
• Increase by a low to mid single-digit percentage range compared with FY19 adjusted EPS, excluding Flipkart

Effective tax rate

Approximately 26.5 percent - 27.5 percent

Expense leverage

Approximately 20 bps

Walmart U.S. grocery pickup and delivery

• Approximately 3,100 grocery pickup locations by year-end FY20

• Approximately 1,600 grocery delivery locations by year-end FY20

Capital expenditures

Approximately $11 billion
• Strong focus on store remodels, customer initiatives, eCommerce, technology and supply chain

New Units

• Walmart U.S. expects to open fewer than 10 stores

• Walmart International expects to open slightly more than 300 new stores primarily in Walmex and China


1 See additional information at the end of this release regarding non-GAAP financial measures.
2 $11.3 billion remaining of $20 billion authorization approved in October 2017. The company repurchased approximately 80 million shares in fiscal 2019.
3 Increase significantly compared with FY19 GAAP EPS

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.

Q4 FY19 Q4 FY18 $ Change % Change FY19 FY18 $ Change % Change
Net sales $90.5 $86.6 $3.9 4.6% $331.7 $318.5 $13.2 4.1%
Comp sales (ex. fuel)1 4.2% 2.6% 160 bps N/A 3.6% 2.1% 150 bps N/A
Traffic 0.9% 1.6% -70 bps N/A NP NP NP NP
Ticket 3.3% 1.0% 230 bps N/A NP NP NP NP
eCommerce ~180 bps ~60 bps ~120 bps N/A NP NP NP NP
Operating income $5.0 $4.7 $0.3 7.3% $17.4 $17.0 $0.4 2.3%


Walmart International

Q4 FY19 Q4 FY18 $ Change % Change FY19 FY18 $ Change % Change
Net sales $32.3 $33.1 -$0.8 -2.3% $120.8 $118.1 $2.8 2.3%
Net sales (constant currency)2 $34.0 $33.1 $0.9 2.7% $121.5 $118.1 $3.5 2.9%
Operating income $1.2 $1.3 -$0.1 -9.9% $4.9 $5.2 -$0.3 -6.6%
Operating income (constant currency)2 $1.3 $1.3 $— -2.8% $4.9 $5.2 -$0.3 -6.6%


Sam's Club

Q4 FY19 Q4 FY18 $ Change % Change FY19 FY18 $ Change % Change
Net sales $14.9 $15.5 -$0.6 -3.7% $57.8 $59.2 -$1.4 -2.3%
Comp sales (ex. fuel)1 3.3% 2.4% 90 bps N/A 3.8% 2.0% 180 bps N/A
Traffic 6.4% 4.3% 210 bps N/A NP NP NP NP
Ticket -3.1% -1.9% -120 bps N/A NP NP NP NP
eCommerce ~90 bps ~80 bps ~10 bps N/A NP NP NP NP
Operating income $0.4 -$0.3 $0.7 NM $1.5 $0.9 $0.6 66.1%

1 13-week period ended January 25, 2019 compared to 13-week period ended January 26, 2018, 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.

Additional highlights for fiscal year 2019

  • Added about 1,000 grocery pickup locations, and reached nearly 800 grocery delivery locations
  • Announced pilot with Udelv for custom autonomous cargo vans to deliver groceries
  • Announced collaboration with Ford to test grocery delivery with self-driving cars
  • Launched Spark Delivery test, a new last-mile grocery delivery service
  • Announced the expansion of grocery delivery providers
  • Showcased new in-store innovations, including autonomous shelf-scanning robots and floor cleaners and FAST unloaders
  • Remodeled approximately 500 U.S. stores
  • Launched 17,000 virtual reality training devices
  • Launched new adoption benefit for associates
  • Raised U.S. starting wages for hourly associates to bring our average hourly total compensation and benefits to more than $17.50
  • Trained about 450,000 associates in our nearly 200 Walmart U.S. training academies
  • Expanded parental leave benefits for associates
  • Launched $1 a day college program for associates through partnership with Guild
  • Launched new digital scheduling system for store associates
  • Launched Checkout with Me in all U.S. stores, a service that allows customers to checkout from anywhere
  • Launched new endless aisle feature allowing customers to order and pay for online items while inside a store
  • Launched Item Finder and store maps chain-wide in Walmart app
  • Launched new features for the Walmart.com Marketplace, including free two-day shipping on millions of new items and the ability to return marketplace items in stores
  • Announced Alphabot, highly efficient picking system for grocery pickup
  • Launched Ellen DeGeneres fashion line, EV1, online and in stores
  • Launched redesign of Walmart.com and Jet.com
  • Launched Fanatics store on Walmart.com
  • Launched Apple store on Jet.com
  • Launched Nike store on Jet.com
  • Launched Lord & Taylor shop on Walmart.com
  • Announced partnership with Advance Auto Parts on Walmart.com
  • Launched Jetblack in New York, a new conversational commerce platform
  • Introduced 3D virtual shopping and “Buy the Room” feature for the Home category on Walmart.com
  • Introduced new Nursery destination launched on Walmart.com
  • Launched Walmart eBooks through partnership with Kobo
  • Acquired virtual reality studio, Spatialand
  • Announced partnership with Eko to create interactive storytelling for entertainment and retail
  • Acquired Bare Necessities, a specialty retailer focused on women’s fashion
  • Acquired ELOQUII, a digitally-native brand focused on women’s fashion
  • Launched Allswell, a digitally-native vertical mattress brand
  • Announced Capital One credit card program for Walmart customers
  • Opened first food manufacturing facility in the U.S., a milk processing plant
  • Announced high-tech distribution center, which can move 40 percent more product than a traditional DC
  • Announced high-tech consolidation center that can receive, sort and ship freight and enable 3x more volume
  • Jet announced new fulfillment center in Bronx, NY
  • Acquired majority stake in Flipkart Group, India’s leading eCommerce business
  • Announced proposed combination of Sainsbury’s and Asda, the company’s wholly-owned U.K. subsidiary
  • Reduced ownership in Walmart Brazil with sale of 80 percent stake
  • Sold financial services business in Chile
  • Announced agreement to sell Walmart Canada Bank
  • Increased investment in Dada-JD Daojia, a crowd-sourced delivery platform in China
  • Launched online marketplace in Canada
  • Launched first Walmart Rakuten Ichiba Store, the first Walmart eCommerce store in Japan
  • Established joint venture with Rakuten for grocery delivery in Tokyo
  • Announced agreement to acquire Cornershop for last-mile delivery capabilities in Mexico and Chile
  • Walmart Mexico launched “Walmart Cashi”, a secure digital payment option for mobile devices
  • Walmart India recognized as India’s "Top 10 Best Workplaces in Retail, 2018"
  • Walmart India recognized among "Top 100 Best Companies for Women, 2018”
  • Launched Retail Academy in India
  • Launched new partnerships in Canada to expand delivery options in grocery and general merchandise
  • Launched same-day delivery from stores in Mexico
  • Opened 1,000th Bodega Aurrera Express store in Mexico
  • Mi Bodega Aurrera launched in-store eCommerce kiosks targeting rural areas in Mexico
  • Walmart China established strategic partnership with Tencent, including use of WeChat Pay and Scan & Go
  • Launched new depots in China for accelerated eCommerce fulfillment and delivery
  • Asda opened its new Merchandising Centre of Excellence
  • Launched free shipping for Plus members from Samsclub.com
  • Announced partnership with Instacart for last-mile delivery at Sam's Club
  • Launched Fresh Certification Program at Sam's Club
  • Opened new Sam’s Club Now, a live club and innovation lab
  • Converted four Sam's Clubs to eCommerce fulfillment centers
  • Received A- grade on CDP report for climate change, up from B the last three years, and was the top performing U.S.-based food retailer
  • Suppliers announced emissions reductions from our supply chain of 20 million metric tons through Project Gigaton
  • Launched Project Gigaton in China
  • Announced the phase out of paint removal products with methylene chloride and NMP
  • Asda announced removal of wrapping from greetings cards, saving over 100 tons of plastic per year
  • Asda and FareShare celebrated five years of partnership and almost eight million meals donated to charity
  • Announced goal to achieve 100 percent recyclable packaging in our private brand packaging by 2025
  • Walmart India announced commitment to increase direct sourcing from farmers to 25% of produce sold in cash and carry stores
  • Signatory to the G7 Oceans Plastics Charter
  • Signatory to the New Plastics Economy Global Commitment
  • Announced agreement with SunPower, a commercial energy provider, to install solar systems at 19 stores and two distribution centers
  • Announced three power purchase agreements with EDP Renewables that will enable the construction of three new utility-scale wind farms

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, over 275 million customers and members visit our more than 11,300 stores under 58 banners in 27 countries and eCommerce websites. With fiscal year 2019 revenue of $514.4 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 https://corporate.walmart.com, on Facebook at http://facebook.com/walmart and on Twitter at http://twitter.com/walmart.

Forward-Looking Statements
This release contains statements as to Walmart management's guidance regarding earnings per share, consolidated net sales growth, Walmart U.S. eCommerce net sales growth, Walmart International net sales growth, consolidated operating income, expense leverage, grocery pickup and delivery locations, number of new units, capital expenditures and Walmart's effective tax rate for the fiscal year ending January 31, 2020, and comparable sales for Walmart U.S. and Sam's Club for the 53 weeks ending January 31, 2020. 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 changes in tax rates;
  • the imposition of new taxes on imports and new tariffs and changes in tariff rates;
  • changes in existing trade restrictions and new trade restrictions;
  • 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 and consistent availability 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.