Walmart : Third Quarter 2025 Presentation

Published: 2024-11-19 07:08:34 ET WMT

Financial presentation

to accompany management commentary

FY25 Q3

Guidance

The following guidance reflects the Company's expectations for fiscal year 2025 and is provided on a non-GAAP basis as the Company cannot predict certain elements that are included in reported GAAP results, such as the changes in fair value of the Company's equity and other investments. Growth rates reflect an adjusted basis for prior year results.

Fiscal Year 2025

The Company's fiscal year guidance is based on the following FY24 figures: Net sales: $642.6 billion, adjusted

operating income1: $27.1 billion, and adjusted EPS1: $2.22. The Company's full year guidance assumes a generally stable consumer and continued pressure from its mix of products and formats globally.

Consolidated Metric

FY 2025 as of Nov. 19, 2024

FY 2025 as of Aug. 15, 2024

FY 2025 as of Feb. 20, 2024

Net sales (cc)

Increase 4.8% to 5.1%

Increase 3.75% to 4.75%

Increase 3.0% to 4.0%

Adj. operating income (cc)

Increase 8.5% to 9.25%

Increase 6.5% to 8.0%

Increase 4.0% to 6.0%

Interest, net

Approximately flat to last year

Increase approximately $100M

Increase approximately $100M to $200M

Effective tax rate

Approximately 24.5%

Lower-end of original guidance

Approximately 25.0% to 26.0%

Non-controlling interest

Unchanged from original guidance

Unchanged from original guidance

Relatively flat

Adjusted EPS

$2.42 to $2.47

$2.35 to $2.43

$2.23 to $2.37

Capital expenditures

Unchanged from original guidance

Unchanged from original guidance

Approximately 3.0% to 3.5% of net sales

1For relevant reconciliations, see Q4 FY24 earnings release furnished on Form 8-K on February 20, 2024. Per share amounts have been retroactively adjusted to reflect the February 23, 2024 stock split.

cc = constant currency

2

Total revenues

Total revenues (cc)1 $170.8 billion, up +6.2%

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

$173.4

$169.3 $169.6

$160.8$161.5

Q3 FY24

Q4 FY24

Q1 FY25

Q2 FY25

Q3 FY25

Y/Y Change

+5.2%

+5.7%

+6.0%

+4.8%

+5.5%

Y/Y Change (cc)1

+4.3%

+4.9%

+5.8%

+5.0%

+6.2%

1See additional information at the end of this presentation regarding non-GAAP financial measures.

3

Gross profit rate

Gross profit rate +21bps to 24.2%

24.4%

24.2%

24.0%24.1%

23.3%

Q3 FY24

Q4 FY24

Q1 FY25

Q2 FY25

Q3 FY25

Y/Y Change

+32bps

+39bps

+42bps

+43bps

+21bps

4

Operating expenses as a percentage of net sales

Operating expenses as a percentage of net sales, +19bps to 21.2%

Operating expenses as a percentage

Adjusted operating expenses as a

of net sales

percentage of net sales1

21.0%

21.2%

21.0%

21.2%

20.8%

20.6%

20.6%

20.6%

20.0%

20.0%

Q3 FY24

Q4 FY24

Q1 FY25

Q2 FY25

Q3 FY25

Q3 FY24

Q4 FY24

Q1 FY25

Q2 FY25

Q3 FY25

Y/Y Change

-182bps

-36bps

+40bps

+35bps

+19bps

Y/Y Change

+37bps

+16bps

+24bps

+41bps

+19bps

1See additional information at the end of this presentation regarding non-GAAP financial measures.

5

Operating income

Operating income of $6.7 billion, up 8.2%

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

Operating income

Adjusted operating income1

$7.9

$7.9

• Operating income (cc)1 up 9.8%

$7.3

$7.3

relative to 6.1% growth in net sales

$6.8

$6.7

$7.1

$6.7

(cc)1

$6.2

$6.2

• Reflects strong sales growth,

higher gross margins and

membership income, partially

offset by expense deleverage; also

benefited from reduced

eCommerce losses

• Q3 FY25 net income margin

increased ~240bps and adjusted

EBITDA margin1 increased ~10bps

Q3 FY24

Q4 FY24

Q1 FY25

Q2 FY25

Q3 FY25

Q3 FY24

Q4 FY24

Q1 FY25

Q2 FY25

Q3 FY25

Y/Y Change

+130.1%

+30.4%

+9.6%

+8.5%

+8.2%

Y/Y Change

+3.0%

+13.2%

+13.7%

+7.2%

+8.2%

Y/Y Change (cc)1

+124.0%

+27.8%

+8.8%

+8.8%

+9.8%

Y/Y Change (cc)1

+0.3%

+10.9%

+12.9%

+7.4%

+9.8%

1See additional information at the end of this presentation regarding non-GAAP financial measures.

6

EPS

Adjusted EPS2 of $0.58, up 13.7%

EPS1

Adjusted EPS1,2

$0.68

$0.67

$0.63

$0.60

$0.60

$0.58

$0.56

$0.57

$0.51

$0.06

Q3 FY24

Q4 FY24

Q1 FY25

Q2 FY25

Q3 FY25

Q3 FY24

Q4 FY24

Q1 FY25

Q2 FY25

Q3 FY25

PY

$0.50

$0.57

$0.49

$0.61

$0.51

Y/Y Change

NM

-11.7%

+200.0%

-42.3%

+850.0%

Y/Y Change

+2.0%

+5.3%

+22.4%

+9.8%

+13.7%

1Comparison period per-share amounts and percentage changes have been retroactively adjusted to reflect the February 23, 2024 stock split. 2See additional information at the end of this presentation regarding non-GAAP financial measures.

NM = not meaningful

7

Cash flow

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

Operating cash flow

Free cash flow1

$35.7

• Operating cash flow increased $3.9

$15.1

billion primarily due an increase in

cash provided by operating income

and lapping the payment of

$22.9

accrued opioid legal charges in the

prior period, partially offset by

$19.0

$16.4

$6.2

increased inventory purchases

$5.9

• Free cash flow1 increased $1.9

$4.3

billion due to the increase in

$4.2

operating cash flow, partially offset

by an increase of $2.0 billion in

$(0.4)

capital expenditures to support

strategic investments

Q3 FY24

Q4 FY24

Q1 FY25

Q2 FY25

Q3 FY25

Q3 FY24

Q4 FY24

Q1 FY25

Q2 FY25

Q3 FY25

YTD

YTD

YTD

YTD

YTD

YTD

YTD

YTD

YTD

YTD

PY

$15.7

$28.8

$4.6

$18.2

$19.0

PY

$3.6

$12.0

$0.2

$9.0

$4.3

Y/Y Change

+21.1%

+23.9%

-8.3%

-10.1%

+20.5%

Y/Y Change

+19.3%

+26.2%

NM

-34.9%

+43.4%

1See additional information at the end of this presentation regarding non-GAAP financial measures.

NM = not meaningful

8

Returns to shareholders

Dividends and share repurchases

Amounts in billions, except as noted. Dollar amounts may not recalculate due to rounding.

$0.1

$1.5

$1.1

$1.0

$1.0

$1.5

$1.5

$1.7

$1.7

$1.7

Q3 FY24

Q4 FY24

Q1 FY25

Q2 FY25

Q3 FY25

Returns to

Dividends

Share repurchases

$1.6

$3.0

$2.7

$2.7

$2.6

shareholders

9

Returns

Return on assets (ROA)

Return on investment (ROI)1

7.9%

7.8%

15.0%

15.0%

15.1%

15.1%

6.5%

6.6%

6.4%

14.1%

Q3 FY24

Q4 FY24

Q1 FY25

Q2 FY25

Q3 FY25

Q3 FY24

Q4 FY24

Q1 FY25

Q2 FY25

Q3 FY25

Y/Y Change

+280bps

+200bps

+340bps

+80bps

+130bps

Y/Y Change

+130bps

+230bps

+230bps

+230bps

+100bps

1See additional information at the end of this presentation regarding non-GAAP financial measures.

10

Disclaimer

Walmart Inc. published this content on November 19, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on November 19, 2024 at 12:07:10.032.