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)) |
The following documents are furnished as exhibits to this Current Report on Form 8-K: | ||
99.1 | ||
99.2 |
WALMART INC. | |
By: | /s/ M. Brett Biggs |
Name: | M. Brett Biggs |
Title: | Executive Vice President and Chief Financial Officer |
![]() | 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%. | "We had a good year, and I want to thank our associates for their great work and openness to change. They continue to inspire us as we strive to serve our customers better every day. Progress on initiatives to accelerate growth, along with a favorable economic environment, helped us deliver strong comp sales and gain market share. We're excited about the work we're doing to reach customers in a more digitally-connected way. Our commitment to the customer is clear - we'll be there when, where and how they want to shop and deliver new, convenient experiences that are uniquely Walmart." Doug McMillon President and CEO, Walmart | ||
![]() | 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 |
![]() | 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 |
![]() | Q4 FY19 | Q4 FY18 | Change | FY19 | FY18 | 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% |
NYSE: WMT | February 19, 2019 | stock.walmart.com |
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% |
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 |
NYSE: WMT | February 19, 2019 | stock.walmart.com |
![]() | Q4 FY19 | Q4 FY18 | Change | FY19 | FY18 | 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% |
![]() | Q4 FY19 | Q4 FY18 | Change | FY19 | FY18 | 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% |
![]() | Q4 FY19 | Q4 FY18 | Change | FY19 | FY18 | 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% |
NYSE: WMT | February 19, 2019 | stock.walmart.com |
• | 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 |
NYSE: WMT | February 19, 2019 | stock.walmart.com |
• | 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 |
Investor Relations contact Dan Binder (479) 258-7172 | Media Relations contact Randy Hargrove (800) 331-0085 |
NYSE: WMT | February 19, 2019 | stock.walmart.com |
• | 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. |
NYSE: WMT | February 19, 2019 | stock.walmart.com |
Quarters Ended | Fiscal Years Ended | |||||||||||||||||||||
January 31, | January 31, | |||||||||||||||||||||
(Amounts in millions, except per share data) | 2019 | 2018 | Percent Change | 2019 | 2018 | Percent Change | ||||||||||||||||
Revenues: | ||||||||||||||||||||||
Net sales | $ | 137,743 | $ | 135,150 | 1.9 | % | $ | 510,329 | $ | 495,761 | 2.9 | % | ||||||||||
Membership and other income | 1,050 | 1,117 | (6.0 | )% | 4,076 | 4,582 | (11.0 | )% | ||||||||||||||
Total revenues | 138,793 | 136,267 | 1.9 | % | 514,405 | 500,343 | 2.8 | % | ||||||||||||||
Costs and expenses: | ||||||||||||||||||||||
Cost of sales | 104,907 | 102,640 | 2.2 | % | 385,301 | 373,396 | 3.2 | % | ||||||||||||||
Operating, selling, general and administrative expenses | 27,819 | 29,160 | (4.6 | )% | 107,147 | 106,510 | 0.6 | % | ||||||||||||||
Operating income | 6,067 | 4,467 | 35.8 | % | 21,957 | 20,437 | 7.4 | % | ||||||||||||||
Interest: | ||||||||||||||||||||||
Debt | 577 | 448 | 28.8 | % | 1,975 | 1,978 | (0.2 | )% | ||||||||||||||
Capital lease and financing obligations | 92 | 88 | 4.5 | % | 371 | 352 | 5.4 | % | ||||||||||||||
Interest income | (64 | ) | (37 | ) | 73.0 | % | (217 | ) | (152 | ) | 42.8 | % | ||||||||||
Interest, net | 605 | 499 | 21.2 | % | 2,129 | 2,178 | (2.2 | )% | ||||||||||||||
Loss on extinguishment of debt | — | 1,004 | (100.0 | )% | — | 3,136 | (100.0 | )% | ||||||||||||||
Other (gains) and losses | (202 | ) | — | N/A | 8,368 | — | N/A | |||||||||||||||
Income before income taxes | 5,664 | 2,964 | 91.1 | % | 11,460 | 15,123 | (24.2 | )% | ||||||||||||||
Provision for income taxes | 1,851 | 601 | 208.0 | % | 4,281 | 4,600 | (6.9 | )% | ||||||||||||||
Consolidated net income | 3,813 | 2,363 | 61.4 | % | 7,179 | 10,523 | (31.8 | )% | ||||||||||||||
Consolidated net income attributable to noncontrolling interest | (126 | ) | (188 | ) | (33.0 | )% | (509 | ) | (661 | ) | (23.0 | )% | ||||||||||
Consolidated net income attributable to Walmart | $ | 3,687 | $ | 2,175 | 69.5 | % | $ | 6,670 | $ | 9,862 | (32.4 | )% | ||||||||||
Net income per common share: | ||||||||||||||||||||||
Basic net income per common share attributable to Walmart | $ | 1.27 | $ | 0.74 | 71.6 | % | $ | 2.28 | $ | 3.29 | (30.7 | )% | ||||||||||
Diluted net income per common share attributable to Walmart | $ | 1.27 | $ | 0.73 | 74.0 | % | $ | 2.26 | $ | 3.28 | (31.1 | )% | ||||||||||
Weighted-average common shares outstanding: | ||||||||||||||||||||||
Basic | 2,896 | 2,959 | 2,929 | 2,995 | ||||||||||||||||||
Diluted | 2,914 | 2,978 | 2,945 | 3,010 | ||||||||||||||||||
Dividends declared per common share | $ | — | $ | — | $ | 2.08 | $ | 2.04 |
January 31, | January 31, | |||||||
(Amounts in millions) | 2019 | 2018 | ||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 7,722 | $ | 6,756 | ||||
Receivables, net | 6,283 | 5,614 | ||||||
Inventories | 44,269 | 43,783 | ||||||
Prepaid expenses and other | 3,623 | 3,511 | ||||||
Total current assets | 61,897 | 59,664 | ||||||
Property and equipment: | ||||||||
Property and equipment | 185,810 | 185,154 | ||||||
Less accumulated depreciation | (81,493 | ) | (77,479 | ) | ||||
Property and equipment, net | 104,317 | 107,675 | ||||||
Property under capital lease and financing obligations: | ||||||||
Property under capital lease and financing obligations | 12,760 | 12,703 | ||||||
Less accumulated amortization | (5,682 | ) | (5,560 | ) | ||||
Property under capital lease and financing obligations, net | 7,078 | 7,143 | ||||||
Goodwill | 31,181 | 18,242 | ||||||
Other long-term assets | 14,822 | 11,798 | ||||||
Total assets | $ | 219,295 | $ | 204,522 | ||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities: | ||||||||
Short-term borrowings | $ | 5,225 | $ | 5,257 | ||||
Accounts payable | 47,060 | 46,092 | ||||||
Accrued liabilities | 22,159 | 22,122 | ||||||
Accrued income taxes | 428 | 645 | ||||||
Long-term debt due within one year | 1,876 | 3,738 | ||||||
Capital lease and financing obligations due within one year | 729 | 667 | ||||||
Total current liabilities | 77,477 | 78,521 | ||||||
Long-term debt | 43,520 | 30,045 | ||||||
Long-term capital lease and financing obligations | 6,683 | 6,780 | ||||||
Deferred income taxes and other | 11,981 | 8,354 | ||||||
Commitments and contingencies | ||||||||
Equity: | ||||||||
Common stock | 288 | 295 | ||||||
Capital in excess of par value | 2,965 | 2,648 | ||||||
Retained earnings | 80,785 | 85,107 | ||||||
Accumulated other comprehensive loss | (11,542 | ) | (10,181 | ) | ||||
Total Walmart shareholders’ equity | 72,496 | 77,869 | ||||||
Noncontrolling interest | 7,138 | 2,953 | ||||||
Total equity | 79,634 | 80,822 | ||||||
Total liabilities and equity | $ | 219,295 | $ | 204,522 |
Fiscal Years Ended | ||||||||
January 31, | ||||||||
(Amounts in millions) | 2019 | 2018 | ||||||
Cash flows from operating activities: | ||||||||
Consolidated net income | $ | 7,179 | $ | 10,523 | ||||
Adjustments to reconcile consolidated net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 10,678 | 10,529 | ||||||
Unrealized (gains) and losses | 3,516 | — | ||||||
(Gains) and losses for disposal of business operations | 4,850 | — | ||||||
Deferred income taxes | (499 | ) | (304 | ) | ||||
Loss on extinguishment of debt | — | 3,136 | ||||||
Other operating activities | 1,734 | 1,210 | ||||||
Changes in certain assets and liabilities, net of effects of acquisitions: | ||||||||
Receivables, net | (368 | ) | (1,074 | ) | ||||
Inventories | (1,311 | ) | (140 | ) | ||||
Accounts payable | 1,831 | 4,086 | ||||||
Accrued liabilities | 183 | 928 | ||||||
Accrued income taxes | (40 | ) | (557 | ) | ||||
Net cash provided by operating activities | 27,753 | 28,337 | ||||||
Cash flows from investing activities: | ||||||||
Payments for property and equipment | (10,344 | ) | (10,051 | ) | ||||
Proceeds from the disposal of property and equipment | 519 | 378 | ||||||
Proceeds from disposal of certain operations | 876 | 1,046 | ||||||
Payments for business acquisitions, net of cash acquired | (14,656 | ) | (375 | ) | ||||
Other investing activities | (431 | ) | (77 | ) | ||||
Net cash used in investing activities | (24,036 | ) | (9,079 | ) | ||||
Cash flows from financing activities: | ||||||||
Net change in short-term borrowings | (53 | ) | 4,148 | |||||
Proceeds from issuance of long-term debt | 15,872 | 7,476 | ||||||
Repayments of long-term debt | (3,784 | ) | (13,061 | ) | ||||
Premiums paid to extinguish debt | — | (3,059 | ) | |||||
Dividends paid | (6,102 | ) | (6,124 | ) | ||||
Purchase of Company stock | (7,410 | ) | (8,296 | ) | ||||
Dividends paid to noncontrolling interest | (431 | ) | (690 | ) | ||||
Purchase of noncontrolling interest | — | (8 | ) | |||||
Other financing activities | (629 | ) | (261 | ) | ||||
Net cash used in financing activities | (2,537 | ) | (19,875 | ) | ||||
Effect of exchange rates on cash, cash equivalents and restricted cash | (438 | ) | 487 | |||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 742 | (130 | ) | |||||
Cash, cash equivalents and restricted cash at beginning of year | 7,014 | 7,144 | ||||||
Cash, cash equivalents and restricted cash at end of period | $ | 7,756 | $ | 7,014 |
Net Sales | Operating Income | ||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||
January 31, | January 31, | ||||||||||||||||
(dollars in millions) | 2019 | 2018 | Percent Change | 2019 | 2018 | Percent Change | |||||||||||
Walmart U.S. | $ | 90,520 | $ | 86,579 | 4.6 | % | $ | 5,043 | $ | 4,701 | 7.3 | % | |||||
Walmart International | 32,317 | 33,092 | -2.3 | % | 1,170 | 1,298 | -9.9 | % | |||||||||
Sam's Club | 14,906 | 15,479 | -3.7 | % | 414 | -308 | NM | ||||||||||
Corporate and support | — | — | N/A | -560 | -1,224 | -54.2 | % | ||||||||||
Consolidated | $ | 137,743 | $ | 135,150 | 1.9 | % | $ | 6,067 | $ | 4,467 | 35.8 | % | |||||
Net Sales | Operating Income | ||||||||||||||||
Fiscal Years Ended | Fiscal Years Ended | ||||||||||||||||
January 31, | January 31, | ||||||||||||||||
(dollars in millions) | 2019 | 2018 | Percent Change | 2019 | 2018 | Percent Change | |||||||||||
Walmart U.S. | $ | 331,666 | $ | 318,477 | 4.1 | % | $ | 17,386 | $ | 16,995 | 2.3 | % | |||||
Walmart International | 120,824 | 118,068 | 2.3 | % | 4,883 | 5,229 | -6.6 | % | |||||||||
Sam's Club | 57,839 | 59,216 | -2.3 | % | 1,520 | 915 | 66.1 | % | |||||||||
Corporate and support | — | — | — | % | -1,832 | -2,702 | -32.2 | % | |||||||||
Consolidated | $ | 510,329 | $ | 495,761 | 2.9 | % | $ | 21,957 | $ | 20,437 | 7.4 | % |
With Fuel | Without Fuel | Fuel Impact | ||||||||||
13 Weeks Ended | 13 Weeks Ended | 13 Weeks Ended | ||||||||||
1/25/2019 | 1/26/2018 | 1/25/2019 | 1/26/2018 | 1/25/2019 | 1/26/2018 | |||||||
Walmart U.S. | 4.2% | 2.7% | 4.2% | 2.6% | 0.0% | 0.1% | ||||||
Sam's Club | 3.7% | 3.6% | 3.3% | 2.4% | 0.4% | 1.2% | ||||||
Total U.S. | 4.1% | 2.8% | 4.0% | 2.6% | 0.1% | 0.2% | ||||||
With Fuel | Without Fuel | Fuel Impact | ||||||||||
52 Weeks Ended | 52 Weeks Ended | 52 Weeks Ended | ||||||||||
1/25/2019 | 1/26/2018 | 1/25/2019 | 1/26/2018 | 1/25/2019 | 1/26/2018 | |||||||
Walmart U.S. | 3.7% | 2.2% | 3.6% | 2.1% | 0.1% | 0.1% | ||||||
Sam's Club | 5.5% | 3.0% | 3.8% | 2.0% | 1.7% | 1.0% | ||||||
Total U.S. | 3.9% | 2.3% | 3.6% | 2.1% | 0.3% | 0.2% |
Three Months Ended January 31, | Twelve Months Ended January 31, | ||||||||||||||||||||||
Walmart International | Consolidated | Walmart International | Consolidated | ||||||||||||||||||||
(Dollars in millions) | 2019 | Percent Change1 | 2019 | Percent Change1 | 2019 | Percent Change1 | 2019 | Percent Change1 | |||||||||||||||
Total revenues: | |||||||||||||||||||||||
As reported | $ | 32,646 | -2.4 | % | $ | 138,793 | 1.9 | % | $ | 122,140 | 2.0 | % | $ | 514,405 | 2.8 | % | |||||||
Currency exchange rate fluctuations | 1,692 | N/A | 1,692 | N/A | 702 | N/A | 702 | N/A | |||||||||||||||
Constant currency total revenues | $ | 34,338 | 2.6 | % | $ | 140,485 | 3.1 | % | $ | 122,842 | 2.6 | % | $ | 515,107 | 3.0 | % | |||||||
Net sales: | |||||||||||||||||||||||
As reported | $ | 32,317 | -2.3 | % | $ | 137,743 | 1.9 | % | $ | 120,824 | 2.3 | % | $ | 510,329 | 2.9 | % | |||||||
Currency exchange rate fluctuations | 1,680 | N/A | 1,680 | N/A | 708 | N/A | 708 | N/A | |||||||||||||||
Constant currency net sales | $ | 33,997 | 2.7 | % | $ | 139,423 | 3.2 | % | $ | 121,532 | 2.9 | % | $ | 511,037 | 3.1 | % | |||||||
Operating income: | |||||||||||||||||||||||
As reported | $ | 1,170 | -9.9 | % | $ | 6,067 | 35.8 | % | $ | 4,883 | -6.6 | % | $ | 21,957 | 7.4 | % | |||||||
Currency exchange rate fluctuations | 92 | N/A | 92 | N/A | 2 | N/A | 2 | N/A | |||||||||||||||
Constant currency operating income | $ | 1,262 | -2.8 | % | $ | 6,159 | 37.9 | % | $ | 4,885 | -6.6 | % | $ | 21,959 | 7.4 | % |
Fiscal Year Ended | ||||||||
January 31, | ||||||||
(Dollars in millions) | 2019 | 2018 | ||||||
Net cash provided by operating activities | $ | 27,753 | $ | 28,337 | ||||
Payments for property and equipment (capital expenditures) | -10,344 | -10,051 | ||||||
Free cash flow | $ | 17,409 | $ | 18,286 | ||||
Net cash used in investing activities1 | $ | -24,036 | $ | -9,079 | ||||
Net cash used in financing activities | -2,537 | -19,875 |
• | Tax Reform - The SEC allowed companies to record provisional amounts during a one year measurement period from the U.S. Tax Reform enactment date. While the company recorded provisional amounts in fiscal 2018, the company adjusted such provisional amounts during fiscal 2019. As the company adjusted EPS in fiscal 2018, for consistency, the company also adjusted EPS in fiscal 2019 for changes to the provisional amounts. This is the last quarter the company will adjust for Tax Reform. |
• | Unrealized gains and losses - Beginning in fiscal 2019, due to a change in U.S. accounting principles, Walmart is required to include unrealized gains/losses of certain equity investments within net income. The company's unrealized gains/losses primarily relate to Walmart's equity investment in JD.com. While the company's investment in JD.com was a strategic decision for the company's retail operations in China, management's measurement of that strategy is primarily focused on the Walmart China financial results rather than the investment value of JD.com. Additionally, management does not forecast changes in fair value of its equity investments. Accordingly, management adjusts EPS for the unrealized JD.com investment gains/losses. |
Three Months Ended January 31, 2019 | ||||||||||||
Diluted earnings per share: | ||||||||||||
Reported EPS | $ | 1.27 | ||||||||||
Adjustments: | Pre-Tax Impact | Tax Impact1 | Net Impact | |||||||||
Unrealized (gains) and losses on JD.com investment | $ | -0.06 | $ | 0.03 | $ | -0.03 | ||||||
Adjustment to provisional amount for Tax Reform | — | 0.17 | 0.17 | |||||||||
Net adjustments | $ | 0.14 | ||||||||||
Adjusted EPS | $ | 1.41 |
Fiscal Year Ended January 31, 20192 | ||||||||||||
Diluted earnings per share: | ||||||||||||
Reported EPS | $ | 2.26 | ||||||||||
Adjustments: | Pre-Tax Impact | Tax Impact1 | Net Impact | |||||||||
Loss on sale of majority stake in Walmart Brazil | $ | 1.64 | $ | -0.10 | $ | 1.54 | ||||||
Unrealized (gains) and losses on JD.com investment | 1.20 | -0.25 | 0.95 | |||||||||
Adjustment to provisional amount for Tax Reform | — | 0.16 | 0.16 | |||||||||
Net adjustments | $ | 2.65 | ||||||||||
Adjusted EPS | $ | 4.91 |
Three Months Ended January 31, 2018 | |||||||||||||||
Diluted earnings per share: | |||||||||||||||
Reported EPS | $ | 0.73 | |||||||||||||
Adjustments: | Pre-Tax Impact | Tax Impact1 | NCI Impact | Net Impact | |||||||||||
Restructuring charges2 | $ | 0.40 | $ | -0.12 | — | $ | 0.28 | ||||||||
Loss on extinguishment of debt | 0.34 | -0.13 | — | 0.21 | |||||||||||
Asset impairments and write-offs3 | 0.18 | -0.06 | — | 0.12 | |||||||||||
Associate lump sum bonus | 0.15 | -0.06 | — | 0.09 | |||||||||||
U.S. Tax Reform benefit | — | -0.07 | — | -0.07 | |||||||||||
Legal settlement recovery | -0.05 | 0.02 | — | -0.03 | |||||||||||
Net adjustments | $ | 0.60 | |||||||||||||
Adjusted EPS | $ | 1.33 | |||||||||||||
Fiscal Year Ended January 31, 2018 | |||||||||||||||
Diluted earnings per share: | |||||||||||||||
Reported EPS | $ | 3.28 | |||||||||||||
Adjustments: | Pre-Tax Impact | Tax Impact1 | NCI Impact4 | Net Impact | |||||||||||
Loss on extinguishment of debt | $ | 1.05 | $ | -0.38 | — | $ | 0.67 | ||||||||
Restructuring charges2 | 0.40 | -0.12 | — | 0.28 | |||||||||||
Asset impairments and write-offs3 | 0.23 | -0.07 | — | 0.16 | |||||||||||
FCPA accrual | 0.09 | — | — | 0.09 | |||||||||||
Associate lump sum bonus | 0.15 | -0.06 | — | 0.09 | |||||||||||
U.S. Tax Reform benefit | — | -0.07 | — | -0.07 | |||||||||||
Gain on sale of Suburbia | -0.13 | 0.04 | 0.04 | -0.05 | |||||||||||
Legal settlement recovery | -0.05 | 0.02 | — | -0.03 | |||||||||||
Net adjustments | $ | 1.14 | |||||||||||||
Adjusted EPS | $ | 4.42 |