Delaware | 001-06991 | 71-0415188 |
(State or other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
WAL-MART STORES, INC. | |
By: | /s/ Gordon Y. Allison |
Name: | Gordon Y. Allison |
Title: | Vice President and General Counsel, Corporate Division |
• | The company reiterates fiscal year 2017 GAAP EPS guidance of $4.29 to $4.49, or adjusted EPS1 guidance of $4.15 to $4.35. |
• | For fiscal year 2018, the company expects GAAP EPS to be relatively flat to fiscal year 2017 adjusted EPS1. |
• | Capital investments are expected to be approximately $11.0 billion for fiscal year 2018. |
• | Make every day easier for busy families; |
• | Operate with discipline, including a continued focus on expense management; |
• | Be the most trusted retailer; and |
• | Deliver results and position the company to win. |
• | For fiscal year 2018, the company expects GAAP EPS to be relatively flat to fiscal year 2017 adjusted EPS1. The company expects continued momentum in its store business. Incremental U.S. e-commerce operating investments, including Jet.com, are expected to accelerate e-commerce growth. |
• | For fiscal year 2019, the company expects EPS growth to be approximately 5%. |
• | Walmart currently has $11.7 billion remaining on its $20 billion share buyback authorization approved in October 2015 and currently expects to complete this buyback around the end of fiscal year 2018. |
• | Walmart’s capital expenditure plan is expected to be approximately $11.0 billion in fiscal year 2018 as the company moderates new store openings, accelerates the pace of remodels and invests in e-commerce and digital initiatives. |
• | The company remains on track to generate approximately $80 billion in operating cash flow from fiscal year 2017 through fiscal year 2019. |
Capital Expenditure Detail (U.S.$ billions) | |||
Segment | FY 16 Actual | FY 172 Projected | FY 182 Projected |
Walmart U.S. | $6.8 | $6.4 | $6.1 |
International | $2.9 | $2.8 | $3.0 |
Sam’s Club | $0.7 | $0.6 | $0.7 |
Total segments | $10.4 | $9.8 | $9.8 |
Corporate & support | $1.1 | $1.2 | $1.2 |
Total | $11.5 | $11.0 | $11.0 |
Total Unit Growth (includes new, expanded and relocated units ) | |||
Segment | FY 16 Actual | FY 172 Projected | FY 182 Projected |
Supercenters | 69 | 60 | 35 |
Small format stores | 161 | 70 | 20 |
Total Walmart U.S. | 230 | 130 | 55 |
International | 228 | 190 - 210 | 190 - 220 |
Sam’s Club U.S. | 13 | 11 | 4 |
Total | 471 | 331 - 351 | 249 - 279 |
• | Adjusted earnings per share and earnings per share for fiscal 2017 and fiscal 2018; |
• | Earnings per share for fiscal 2019; |
• | Continued momentum in Walmart’s store business and acceleration of e-commerce growth from incremental U.S. e-commerce operating investments; |
• | Completion of Walmart’s $20 billion share buyback authorization and the timing of such completion; |
• | Capital expenditures, by segment and in total, for fiscal 2017 and fiscal 2018; |
• | Total unit growth, for Walmart U.S. by format and for Walmart International and Sam’s Club U.S., for fiscal 2017 and fiscal 2018; |
• | The moderation of Walmart’s new store openings, acceleration of the pace of remodels and investments in e-commerce and digital initiatives; |
• | Operating cash flow to be generated from fiscal 2017 through fiscal 2019; |
• | Ongoing success being driven by a number of factors, including continued momentum in the U.S. business; solid growth in key international markets; a sharpened focus in China; and e-commerce investments; |
• | Greater reliance on comp sales and e-commerce growth to drive the top line and plans to slow new-store openings, while increasing investment in e-commerce, technology and store remodels; and |
• | Strategic investments in growth while returning significant cash to shareholders in the form of dividends and share repurchases. |
• | 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 financial performance of Walmart and each of its segments; |
• | Walmart's effective tax rate and 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; |
• | customer traffic and average ticket in Walmart's stores and clubs and on its e-commerce 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, e-commerce websites, mobile apps, initiatives, programs and merchandise offerings; |
• | cyber security events affecting Walmart and related costs; |
• | 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; |
• | changes in existing tax, labor and other laws and changes in tax rates, trade restrictions and tariff rates; |
• | the level of public assistance payments; |
• | natural disasters, public health emergencies, civil disturbances, and terrorist attacks. |
• | Walmart's expenditures for FCPA and other compliance related costs; and |
• | developments in, the outcomes of and costs incurred in legal proceedings and investigations, including the FCPA investigation, to which Walmart is a party or in which Walmart is involved. |
Adjusted EPS Guidance - Fiscal 2017 | |
Fiscal 2017 | |
Diluted net income per share: | |
Adjusted EPS | $4.15 - $4.35 |
Adjustment - Gain from the sale of Yihaodian in China, net of tax | $0.14 |
GAAP EPS | $4.29 - $4.49 |
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