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)) |
Exhibit No. | Description | |
PRESS RELEASE |
WAL-MART STORES, INC. | |
By: | /s/ Gordon Y. Allison |
Gordon Y. Allison | |
Vice President and General Counsel, Corporate |
• | The company reiterates fiscal year 2018 GAAP EPS1 guidance of $4.18 to $4.28, or adjusted EPS1,2 guidance of $4.30 to $4.40. |
• | For fiscal year 2019, the company expects EPS3 to increase approximately 5 percent compared with fiscal year 2018 adjusted EPS2. |
• | The company announces a new $20 billion share repurchase program to replace its existing authorization and expects to utilize the new authorization over an approximate two year period. |
• | Consolidated net sales are expected to grow at or above 3 percent, driven by comp-sales and eCommerce growth, assuming currency exchange rates remain at current levels |
• | Anticipates sales growth at Walmart U.S. eCommerce to be about 40 percent |
• | Expects to add 1,000 online grocery locations in Walmart U.S. |
• | Expects to leverage expenses |
• | Expects its effective tax rate to be approximately 32.5 percent |
• | Walmart U.S. will continue to prioritize store remodels and digital experiences over new stores. |
• | eCommerce investments include enhanced supply chain capabilities. |
• | In addition to new stores, Walmart International will invest more in fulfillment capabilities |
• | Walmart U.S. expects to open fewer than 15 Supercenters and fewer than 10 Neighborhood Markets in fiscal year 2019. |
• | Walmart International expects to open approximately 255 new stores with a focus in key markets such as Mexico and China. |
• | Adjusted earnings per share and earnings per share for fiscal 2018; |
• | Earnings per share for fiscal 2019; |
• | Continued momentum in our business and continued innovation in our stores, clubs and through eCommerce; |
• | Completion of our new $20 billion share buyback authorization and the timing of such completion; |
• | Our flexibility to invest in and grow our business while providing meaningful returns to shareholders; |
• | Consolidated net sales and comp sales growth for fiscal 2019; |
• | Sales growth at Walmart US eCommerce for fiscal 2019; |
• | The number of online grocery locations to be added in fiscal 2019; |
• | The levering of expenses in fiscal 2019; |
• | Our effective tax rate for fiscal 2019; |
• | Capital expenditures, and segment level capital allocations, for fiscal 2018 and fiscal 2019; |
• | The prioritization by Walmart U.S. of store remodels and digital experiences over new builds; |
• | Our eCommerce investments in supply chain capabilities and merchant tools; |
• | Walmart International’s opening more new stores in markets such as China and Mexico; and |
• | Total new units for Walmart U.S. by format, and for Walmart International and Sams Club U.S., for fiscal 2018 and fiscal 2019. |
• | 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 rates of interest; |
• | changes in market levels of wages; |
• | changes in the size of various markets, including eCommerce markets; |
• | unemployment levels; |
• | inflation or deflation, generally and in certain product categories; |
• | transportation, energy and utility costs; |
• | commodity prices, including the prices of oil and natural gas; |
• | consumer confidence, disposable income, credit availability, spending levels, shopping patterns, debt levels, and demand for certain merchandise; |
• | trends in consumer shopping habits around the world and in the markets in which Walmart operates; |
• | consumer enrollment in health and drug insurance programs and such programs' reimbursement rates and drug formularies; |
• | initiatives of competitors, competitors' entry into and expansion in Walmart’s markets, and competitive pressures; |
• | changes in the trading prices of certain equity investments held by Walmart. |
• | the amount of Walmart’s net sales and operating expenses denominated in U.S. dollar and various foreign currencies; |
• | the financial performance of Walmart and each of its segments, including the amounts of Walmart’s cash flow during various periods; |
• | Walmart’s need to repatriate earnings held outside of the U.S. and changes in U.S. tax regulations; |
• | customer traffic and average ticket in Walmart’s stores and clubs and on its eCommerce websites; |
• | the mix of merchandise Walmart sells; |
• | the availability of goods from suppliers and the cost of goods acquired from suppliers; |
• | the effectiveness of the implementation and operation of Walmart’s strategies, plans, programs and initiatives; |
• | the impact of acquisitions and divestitures, store and club closures and other changes in our business portfolio; |
• | Walmart’s ability to successfully integrate acquired businesses, including within the eCommerce space; |
• | the amount of shrinkage Walmart experiences; |
• | consumer acceptance of and response to Walmart’s stores and clubs, eCommerce websites, mobile apps, programs and merchandise offerings, including the Walmart U.S. segment's Grocery Pickup program; |
• | new methods for delivery of purchased merchandise to customers; |
• | Walmart’s gross profit margins, including pharmacy margins and margins of other product categories; |
• | the selling prices of gasoline and diesel fuel; |
• | disruption of seasonal buying patterns in Walmart’s markets; |
• | Walmart’s expenditures for FCPA and other compliance-related matters; |
• | disruptions in Walmart’s supply chain; |
• | cybersecurity events affecting Walmart and related costs and impact of any disruption in business; |
• | Walmart’s labor costs, including healthcare and other benefit costs; |
• | Walmart’s casualty and accident-related costs and insurance costs; |
• | the size of and turnover in Walmart’s workforce and the number of associates at various pay levels within that workforce; |
• | unexpected changes in Walmart’s objectives and plans; |
• | the availability of necessary personnel to staff Walmart’s stores, clubs and other facilities; |
• | the availability of skilled labor in areas in which new units are to be constructed or existing units are to be relocated, expanded or remodeled; |
• | delays in the opening of new, expanded or relocated units; |
• | developments in, and the outcome of, legal and regulatory proceedings and investigations to which Walmart is a party or is subject, and the liabilities, obligations and expenses, if any, that Walmart may incur in connection therewith; |
• | changes in the credit ratings assigned to Walmart’s commercial paper and debt securities by credit rating agencies; |
• | Walmart’s effective tax rate; and |
• | unanticipated changes in accounting judgments and estimates; |
• | changes in existing tax, labor and other laws and changes in tax rates, including the enactment of laws and the adoption and interpretation of administrative rules and regulations; |
• | governmental policies, programs, initiatives and actions in the markets in which Walmart operates and elsewhere; |
• | the possibility of imposition of new taxes on imports and new tariffs and trade restrictions and changes in existing tariff rates and trade restrictions; |
• | changes in currency control laws; |
• | changes in the level of public assistance payments; |
• | the timing of federal income tax refunds; |
• | natural disasters, public health emergencies, civil disturbances, and terrorist attacks; and |
• | changes in generally accepted accounting principles in the United States. |
Fiscal 2018 | ||||||||
Diluted net income per share: | ||||||||
Forecasted EPS | $4.18 - $4.28 | |||||||
Adjustments: | Pre-Tax Impact | Tax Impact1 | NCI Impact2 | Net Impact | ||||
Loss on Early Extinguishment of Debt3 | $0.26 | -$0.09 | $— | $0.17 | ||||
Gain on Sale of Suburbia | -0.13 | 0.04 | 0.04 | -0.05 | ||||
Net adjustments | $0.12 | |||||||
Adjusted EPS Guidance | $4.30 - $4.40 |
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