WALMART INC. Company reports Q2 FY18 GAAP EPS of $0.96; Adjusted EPS(3) of $1.08
- Total revenue was $123.4 billion, an increase of $2.5 billion, or 2.1%. Excluding currency, total revenue was $124.4 billion, an increase of $3.5 billion, or 2.9%.
- Walmart U.S. comp sales increased 1.8% with traffic growth of 1.3%, marking the twelfth consecutive quarter with positive comp sales.
- E-commerce growth at Walmart U.S. remained strong, led by organic growth through Walmart.com. Net sales and GMV grew 60% and 67%, respectively, as customers continued to respond well to new initiatives and an expanded assortment of more than 67 million SKUs.
- Net sales at Walmart International were $28.3 billion, a decrease of 1.0%. Excluding currency, net sales were $29.3 billion, an increase of 2.5%. Nine of eleven markets posted positive comp sales.
- Second quarter EPS included a charge of $0.17 for loss on extinguishment of debt in connection with the company's recently completed debt tender offers. This discrete charge was partially offset by the gain from the sale of the Suburbia business in Mexico, which benefited EPS by $0.05.
Key results
Q2 FY18 | Q2 FY17 | $ Change | % Change | |
| Revenue | $123,355 | $120,854 | $2,501 | 2.1% |
| Revenue (constant currency) | $124,395 | $120,854 | $3,541 | 2.9% |
| Operating income | $5,969 | $6,165 | -$196 | -3.2% |
| Operating income (constant currency) | $6,069 | $6,165 | -$96 | -1.6% |
Free Cash Flow | YTD FY18 | $ Change | Returns to Shareholders | Q2 FY18 | % Change | |
| Operating cash flow | $11,360 | -$3,571 | Dividends | $1,539 | -1.3% | |
| Capital expenditures | $4,423 | -$196 | Share repurchases | $2,262 | 6.8% | |
| Free cash flow | $6,937 | -$3,375 | Total | $3,801 | 3.4% |
Guidance
- Fiscal year 2018 GAAP EPS: $4.18 to $4.28
- Fiscal year 2018 adjusted EPS: $4.30 to $4.40
- Third quarter fiscal year 2018 EPS: $0.90 to $0.98
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Comp sales for the 13-week period ending Oct. 27, 2017:
- Walmart U.S. (ex. fuel): +1.5% to +2.0%
- Sam's Club (ex. fuel): +1.0% to +1.5%
Segment results
Walmart U.S.
Q2 FY18 | Q2 FY17 | $ Change | % Change | |
| Net sales | $78,738 | $76,241 | $2,497 | 3.3% |
| Comp sales (ex. fuel) | 1.8% | 1.6% | 20 bps | N/A |
| Traffic | 1.3% | 1.2% | 10 bps | N/A |
| Ticket | 0.5% | 0.4% | 10 bps | N/A |
| E-commerce | ~70 bps | ~40 bps | ~30 bps | N/A |
| Operating income | $4,618 | $4,519 | $99 | 2.2% |
Walmart International
Q2 FY18 | Q2 FY17 | $ Change | % Change | |
| Net sales | $28,331 | $28,621 | -$290 | -1.0% |
| Net sales (constant currency) | $29,326 | $28,621 | $705 | 2.5% |
| Operating income | $1,592 | $1,727 | -$135 | -7.8% |
| Operating income (constant currency) | $1,692 | $1,727 | -$35 | -2.0% |
Sam's Club
Q2 FY18 | Q2 FY17 | $ Change | % Change | |
| Net sales | $14,880 | $14,543 | $337 | 2.3% |
| Comp sales (ex. fuel) | 1.2% | 0.6% | 60 bps | N/A |
| Traffic | 2.1% | -0.4% | 250 bps | N/A |
| Ticket | -0.9% | 1.0% | -190 bps | N/A |
| E-commerce | ~80 bps | ~60 bps | ~20 bps | N/A |
| Operating income | $404 | $472 | -$68 | -14.4% |
Wal-Mart Stores, 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 260 million customers and members visit our more than 11,600 stores under 59 banners in 28 countries and e-commerce websites in 11 countries. With fiscal year 2017 revenue of $485.9 billion, Walmart employs approximately 2.3 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 http://corporate.walmart.com, on Facebook at http://facebook.com/walmart and on Twitter at http://twitter.com/walmart.
Investor Relations contact
Steve Schmitt (479) 258-7172
Media Relations contact
Randy Hargrove (800) 331-0085
Along with this press release, Walmart makes available a recorded call with executive leaders and a financial presentation to review business results, provide strategic updates, and comment on expectations for the future. We provide that call in both audio form and in a written transcript. Details on accessing the call are as follows:
- 877-523-5612 (U.S. and Canada)
- 201-689-8483 (other countries)
- Passcode: 9256278 (Walmart)
The call is archived at stock.walmart.com.
Wal-Mart Stores Inc. published this content on 17 August 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 17 August 2017 11:21:05 UTC.
Original documenthttp://news.walmart.com/2017/08/17/walmart-us-q2-comps-1-grew-18-and-walmart-us-ecommerce-gmv-2-grew-67
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