Core Insights - Walmart is adapting its strategies to attract younger shoppers through new advertising campaigns, a clothing brand for tweens, and expanded drone delivery services [1][2][4] Company Initiatives - Walmart hosted its Associates Week event, emphasizing employee recognition and shareholder engagement, featuring performances from celebrities [3] - The company plans to expand drone deliveries to 100 stores across three states, enhancing convenience for customers [9] - A new private clothing brand, Weekend Academy, will launch with 65 items priced under $15, targeting tween consumers [9][10] Market Context - The retail environment is challenging due to tariffs leading to price increases, yet Walmart sees opportunities to capture market share from value-conscious consumers [4][5] - Despite economic pressures, consumer spending patterns remain stable, with increased spending on groceries impacting discretionary purchases [5][6] - Walmart's strategy includes focusing on higher-margin categories like apparel and home decor to offset cost pressures from tariffs [8] Advertising Strategy - Walmart's new advertising campaign features actors from popular shows and aims to surprise consumers with its merchandise and delivery options, using the tagline "Who knew?" [10][11]

Part I. [Financial Information](index=3&type=section&id=Part%20I.%20Financial%20Information) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) For the quarter ended April 30, 2025, Walmart's total revenues grew 2.5% year-over-year to $165.6 billion, while consolidated net income declined to $4.6 billion from $5.3 billion, primarily due to net losses on equity investments, resulting in a diluted EPS of $0.56, down from $0.63 in the prior year; the balance sheet shows total assets increased to $262.4 billion, cash flow from operations was strong at $5.4 billion, and key notes highlight $4.0 billion in new long-term debt and ongoing significant legal contingencies, particularly related to opioids [Consolidated Statements of Income](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Q1 FY2026 vs Q1 FY2025 Income Statement Highlights | Financial Metric | Q1 FY2026 (ended Apr 30, 2025) | Q1 FY2025 (ended Apr 30, 2024) | YoY Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | $165,609 million | $161,508 million | +2.5% | | **Operating Income** | $7,135 million | $6,841 million | +4.3% | | **Other (gains) and losses** | $597 million (loss) | $(794) million (gain) | - | | **Consolidated Net Income** | $4,639 million | $5,307 million | -12.6% | | **Diluted EPS** | $0.56 | $0.63 | -11.1% | | **Dividends Declared per Share** | $0.94 | $0.83 | +13.3% | [Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Balance Sheet Highlights (as of April 30) | Balance Sheet Item | April 30, 2025 | April 30, 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $9,311 million | $9,405 million | -1.0% | | Inventories | $57,467 million | $55,382 million | +3.8% | | **Total Assets** | **$262,372 million** | **$254,054 million** | **+3.3%** | | Accounts payable | $57,700 million | $56,071 million | +2.9% | | Long-term debt (incl. current) | $40,605 million | $37,793 million | +7.4% | | **Total Liabilities** | **$172,024 million** | **$165,837 million** | **+3.7%** | | **Total Shareholders' Equity** | **$90,341 million** | **$88,073 million** | **+2.6%** | [Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Summary (Three Months Ended April 30) | Cash Flow Activity | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | **Net cash provided by operating activities** | **$5,411 million** | **$4,249 million** | **+$1,162 million** | | Net cash used in investing activities | ($5,093) million | ($4,409) million | +$684 million | | Net cash provided by (used in) financing activities | $8 million | ($321) million | +$329 million | [Note 4: Debt and Financing](index=10&type=section&id=Note%204.%20Short-term%20Borrowings%20and%20Long-term%20Debt) - In April 2025, the company renewed and extended credit facilities totaling **$15.0 billion**, consisting of a **$10.0 billion** 364-day facility and a **$5.0 billion** five-year facility, all of which were undrawn as of April 30, 2025[30](index=30&type=chunk) New Long-Term Debt Issuances (April 2025) | Principal Amount | Maturity Date | Interest Rate | Net Proceeds | | :--- | :--- | :--- | :--- | | $750 million | April 2027 | Floating | $749 million | | $750 million | April 2027 | 4.100% | $748 million | | $1,000 million | April 2030 | 4.350% | $993 million | | $1,500 million | April 2035 | 4.900% | $1,493 million | | **Total** | | | **$3,983 million** | [Note 6: Legal Contingencies](index=11&type=section&id=Note%206.%20Contingencies) - The company continues to vigorously defend against numerous opioid-related lawsuits not covered by the previous **$3.3 billion** settlement, including cases in the national multidistrict litigation (MDL), and cannot reasonably estimate any potential loss[42](index=42&type=chunk)[44](index=44&type=chunk) - The DOJ's civil complaint regarding opioid dispensing and distribution practices remains pending, with a trial scheduled for November 2027[48](index=48&type=chunk) - Other significant legal matters include equal value claims against former subsidiary Asda, investigations by the FTC and DOJ into money transfer services, and antitrust matters in Mexico and India[54](index=54&type=chunk)[56](index=56&type=chunk)[61](index=61&type=chunk)[63](index=63&type=chunk) [Note 7: Segment and Revenue Details](index=14&type=section&id=Note%207.%20Segments%20and%20Disaggregated%20Revenue) Segment Performance (Three Months Ended April 30, 2025) | Segment | Total Revenues | Operating Income | YoY Op. Income Change | | :--- | :--- | :--- | :--- | | Walmart U.S. | $112.8 billion | $5.7 billion | +7.0% | | Walmart International | $30.1 billion | $1.3 billion | -17.5% | | Sam's Club U.S. | $22.7 billion | $0.7 billion | +11.5% | eCommerce Net Sales (Three Months Ended April 30) | Segment | 2025 | 2024 | YoY Growth | | :--- | :--- | :--- | :--- | | Walmart U.S. | $21.4 billion | $17.6 billion | +21.6% | | Walmart International | $7.7 billion | $6.4 billion | +20.3% | | Sam's Club U.S. | $3.3 billion | $2.6 billion | +26.9% | [Management's Discussion and Analysis (MD&A)](index=18&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes performance to strong U.S. comparable sales growth of 3.0%, driven by robust eCommerce and strength in grocery and health & wellness, with the consolidated gross profit rate improving by 12 basis points and operating income growing 4.3%; the company is focused on its strategic priorities of growth, margin improvement, and returns, as evidenced by increased capital expenditures in automation and stores, a 13% dividend increase, and $4.6 billion in share repurchases during the quarter [Company Performance Metrics](index=18&type=section&id=Company%20Performance%20Metrics) U.S. Comparable Sales Growth (Three Months Ended April 30, 2025) | Segment | Comparable Sales (incl. Fuel) | eCommerce Contribution | | :--- | :--- | :--- | | Walmart U.S. | +3.1% | +3.4% | | Sam's Club U.S. | +2.8% | +3.3% | - Gross profit rate increased by **12 basis points**, primarily due to disciplined inventory management and growth in higher-margin businesses at Walmart U.S[81](index=81&type=chunk) Return on Investment (ROI) and Free Cash Flow | Metric | Trailing 12 Months Ended Apr 30, 2025 | Trailing 12 Months Ended Apr 30, 2024 | | :--- | :--- | :--- | | **ROI (Non-GAAP)** | **15.3%** | **15.0%** | | **ROA (GAAP)** | **7.5%** | **7.9%** | | **Free Cash Flow (Q1)** | **$425 million** | **($427) million** | [Results of Operations by Segment](index=22&type=section&id=Results%20of%20Operations%20by%20Segment) - **Walmart U.S.:** Operating income rose **7.0%** to **$5.7 billion**, net sales grew **3.2%**, driven by **3.1%** comparable sales, and gross profit rate increased **25 basis points** from disciplined inventory management and growth in higher-margin businesses[101](index=101&type=chunk)[103](index=103&type=chunk)[105](index=105&type=chunk) - **Walmart International:** Operating income fell **17.5%** to **$1.3 billion**, net sales were down **0.3%**, heavily impacted by a **$2.4 billion** negative currency effect, and gross profit rate declined **66 basis points** due to channel and format mix shifts[106](index=106&type=chunk)[107](index=107&type=chunk)[109](index=109&type=chunk) - **Sam's Club U.S.:** Operating income grew **11.5%** to **$686 million**, net sales increased **2.9%**, with comparable sales up **2.8%**, and membership income grew a strong **8.2%**, reflecting growth in the member base[110](index=110&type=chunk)[111](index=111&type=chunk)[112](index=112&type=chunk) [Liquidity and Capital Resources](index=25&type=section&id=Liquidity%20and%20Capital%20Resources) - Net cash from operating activities increased to **$5.4 billion** for the quarter, up from **$4.2 billion** in the prior year, due to higher operating income and timing of payments[114](index=114&type=chunk) - The company increased its annual dividend for fiscal 2026 by **13%** to **$0.94 per share**[121](index=121&type=chunk) Share Repurchases (Q1 FY2026) | Metric | Value | | :--- | :--- | | Total Amount Paid | $4,555 million | | Total Shares Repurchased | 50.4 million | | Average Price Paid | $90.35 | [Market Risk](index=27&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company states there have been no material changes to its market risks, which primarily relate to interest rates, currency exchange rates, and the fair value of equity investments, since its last Annual Report on Form 10-K - There were no material changes to market risks from those disclosed in the Annual Report for the fiscal year ended January 31, 2025; key risks remain changes in interest rates, currency exchange rates, and fair value of certain equity investments[128](index=128&type=chunk) [Controls and Procedures](index=28&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of April 30, 2025, with no significant changes to internal controls over financial reporting during the quarter - Based on an evaluation, the CEO and CFO concluded that the company's disclosure controls and procedures are effective to provide reasonable assurance of timely and accurate reporting[131](index=131&type=chunk) - No significant changes in the company's internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, these controls[131](index=131&type=chunk) Part II. [Other Information](index=29&type=section&id=Part%20II.%20Other%20Information) [Legal Proceedings](index=29&type=section&id=Item%201.%20Legal%20Proceedings) This section provides supplemental details and case citations for significant legal matters discussed in the financial notes, including ongoing opioid litigation, Asda equal value claims, and money transfer services litigation; it also discloses a new environmental matter with the EPA regarding alleged Clean Air Act violations, with potential penalties exceeding $1 million - Provides supplemental case citations for major legal proceedings, including the *In re National Prescription Opiate Litigation* (MDL No. 2804) and the DOJ's civil litigation against the company[134](index=134&type=chunk)[135](index=135&type=chunk) - In October 2023, the EPA issued a Finding of Violation alleging violations of the Clean Air Act related to the company's refrigeration leak detection and repair program; the EPA could seek penalties exceeding **$1 million**[142](index=142&type=chunk) [Risk Factors](index=30&type=section&id=Item%201A.%20Risk%20Factors) The company reports that no material changes have occurred in the risk factors previously disclosed in its Annual Report on Form 10-K for the fiscal year ended January 31, 2025 - No material change in the risk factors discussed in the Form 10-K for the fiscal year ended January 31, 2025, has occurred[143](index=143&type=chunk) [Share Repurchases](index=30&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the quarter, Walmart repurchased 50.9 million shares for approximately $4.6 billion; as of April 30, 2025, $7.5 billion remained available for future repurchases under the existing program Share Repurchase Activity (Q1 FY2026, Trade Date Basis) | Fiscal Period | Shares Purchased | Average Price Paid | Total Value (billions) | | :--- | :--- | :--- | :--- | | Feb 2025 | 6,672,891 | $99.20 | ~$0.7 | | Mar 2025 | 23,690,359 | $87.66 | ~$2.1 | | Apr 2025 | 20,502,718 | $90.67 | ~$1.9 | | **Total** | **50,865,968** | | **~$4.6** | - As of April 30, 2025, authorization for **$7.5 billion** of share repurchases remained under the share repurchase program approved in November 2022[144](index=144&type=chunk) [Other Information](index=30&type=section&id=Item%205.%20Other%20Information) This section discloses that in March 2025, CEO C. Douglas McMillon and Walmart U.S. CEO John Furner both adopted Rule 10b5-1 stock trading plans; the section also contains the standard cautionary statement regarding forward-looking statements - On March 17, 2025, CEO C. Douglas McMillon and Walmart U.S. CEO John Furner each entered into a stock trading plan designed to comply with Rule 10b5-1[146](index=146&type=chunk)[147](index=147&type=chunk)

沃尔玛百货(WMT.N)CFO：消费者支出基本保持稳定。 ...

Core Insights - Walmart is expanding its drone delivery service to three additional states, aiming to compete with Amazon for the fastest delivery service [1] - The partnership with Google's Wing will enable Walmart to launch drone delivery at 100 stores across cities including Atlanta, Charlotte, Houston, Orlando, and Tampa, building on existing operations in Arkansas and Texas [2] - Walmart claims to be the first retailer to scale drone delivery across five states, emphasizing its goal to lead in tech-enabled retail [2] Delivery Service Details - Wing's drones can operate beyond visual line of sight, covering a range of up to 6 miles from the store, with delivery times under 30 minutes [3] - Walmart has conducted over 150,000 drone deliveries since 2021 in collaboration with Wing and Zipline, which initially partnered with Walmart for deliveries in Arkansas [6] - In addition to drone delivery, Walmart has launched other fast delivery options, including Express Delivery, Late-Night Delivery, and InHome Delivery [8] Competitive Landscape - Amazon has also been expanding its drone delivery services, recently deploying them in College Station, Texas, and the West Valley of Phoenix, Arizona [9] - Amazon reported record Prime delivery speeds in early 2024, with over 2 billion items delivered the same or next day to Prime members globally [10]

Core Insights - Walmart's success is driven by its strong omnichannel strategy, integrating physical stores with digital shopping, leading to a 22% growth in global e-commerce sales in Q1 FY26 [1][7] E-commerce Performance - In the U.S., e-commerce sales increased by 21%, supported by store-fulfilled pickup and delivery, with international sales rising by 20% [2] - Sam's Club U.S. saw a significant 27% increase in e-commerce sales, driven by Club-fulfilled deliveries and pickup services [2] Digital Business Expansion - Walmart is enhancing its supply chain and expanding digital services like Walmart GoLocal, Walmart Connect, Scintilla, Walmart+, and Walmart Fulfillment Services [3] - The company has made strategic investments, including acquiring a stake in Flipkart and owning most of PhonePe, contributing to its growth in online grocery shopping [3] Competitive Landscape - Amazon remains the leading player in e-commerce, focusing on speed and customer loyalty through its Prime program, but Walmart is leveraging its store network to compete effectively, especially in groceries [4] - Target's e-commerce growth is attributed to its focus on convenience, with online sales contributing approximately 20% to its total revenues in Q1 2025 [5] Financial Performance - Walmart's shares have increased by approximately 10.6% year-to-date, slightly below the industry's growth of 10.8% [6] - The company trades at a forward price-to-earnings ratio of 37.08X, above the industry average of 33.95X [8] Earnings Estimates - The Zacks Consensus Estimate for Walmart's 2025 earnings indicates a year-over-year growth of 3.2%, with an 11.6% increase expected in 2026 [9]

Group 1 - Sam's Club has undergone a major regional organizational adjustment, restructuring its existing six regions into seven, with the addition of Jiangsu and Zhejiang regions [2] - The new regional structure includes South Region, Shenzhen Region, Jiangsu Region, Zhejiang Region, Shanghai Region, North Region, and Central Region, with significant changes in the East Region [2] - The adjustment appears to focus on the East China market, separating Jiangsu, Zhejiang, and Shanghai into distinct regional organizations [2] Group 2 - Walmart's Q1 FY2026 financial report shows global net sales of $165.6 billion, with Walmart China net sales reaching $6.7 billion, a year-on-year increase of 22.5% [3] - Sam's Club, as one of Walmart's three main businesses, reported a same-store sales growth of 6.7%, a transaction volume increase of 4.8%, and a membership income growth of 9.6% in the first quarter [3]

Core Insights - Walmart is expanding its drone delivery service to five new cities to enhance online sales and improve delivery speed [1] - The company aims to be the first retailer to implement large-scale drone delivery operations across five states [1] - Faster delivery services are crucial for Walmart's growth as consumers increasingly prioritize convenience [1] Group 1: Expansion of Drone Delivery - Walmart will launch drone delivery services in Charlotte, Tampa, Atlanta, Houston, and Orlando, covering 100 stores [1] - The service will allow for delivery of items such as fresh fruits, eggs, pet food, and ice cream within minutes [1] - Walmart's Chief eCommerce Officer highlighted the flexibility that faster delivery windows provide to consumers [1] Group 2: Financial Implications - Walmart expects its online business to become profitable this year after investing billions to compete with e-commerce giants like Amazon [1] - The company is focused on reducing costs associated with e-commerce, which have been high due to shipping, labor, and fuel expenses [1] - Efforts to cut costs include automating warehouses and processing more orders in bulk [1] Group 3: Partnerships and Collaborations - Walmart is deepening its collaboration with Alphabet's drone company Wing, which began in 2023 in Dallas [2] - Wing has received FAA approval to operate drones within a 6-mile radius of Walmart stores [2] - Walmart is also partnering with another drone delivery company, Zipline, in Texas and Arkansas [2]

说到「沃尔玛」，很多人第一时间想到的，可能都是它遍布全美的实体大卖场，或者「山姆会员商店」。自 1962 年开设第一家门店以来，沃尔玛始终专注于实体零售经济，凭借「天天低价」的承诺，成为中低收入美 国人的首选零售商，并在 1990 年登顶美国零售业榜首。 其实，沃尔玛对电商的探索可以追溯到上世纪。1996 年，沃尔玛上线了自己的在线商店，但业内普遍认为这 更像是一场实验，而非长期战略。尽管后来成立了电商部门、收购相关企业，沃尔玛的重心依然放在实体零 售。 正如《财富》杂志所说，沃尔玛长期陷入「创新者的困境」——作为线下零售巨头，他们担心电商业务长期需 要现金流补贴，会蚕食本已成熟的实体零售，因此在电商探索上显得保守。这也让「亚马逊」抓住机会，成为 电商领域的一家独大。 ▲ 图源：华尔街日报 eMarketer 的分析师指出，在疫情爆发之前，沃尔玛的电商业务发展缓慢。但疫情开始后，美国消费者大规模 转向线上购物，这打破了沃尔玛内部「门店优先」的既得利益格局，也倒逼他们打通线上线下，迫使他们改造 并利用现有门店网络来满足飙升的在线订单需求。 《经济学人》认为，沃尔玛的最大优势就是 实体布局 。行业数据显示，沃尔玛 ...

Core Insights - The rise of "county-level Sam's Club" stores in China reflects a significant shift in consumer behavior, with a growing demand for quality products in lower-tier cities [1][3][13] - The current market for purchasing Sam's Club products through agents has evolved, with physical stores emerging as a new business model to meet local consumer needs [1][5][12] Group 1: Market Dynamics - The emergence of agent-operated physical stores is driven by the increasing purchasing power in county-level markets, with retail sales in these areas rising from 36.8% to 38.8% from 2019 to 2024 [3][4] - Consumers in lower-tier cities are increasingly interested in premium products previously exclusive to first-tier cities, such as lululemon and Xiaomi SU7 [3][4] Group 2: Business Model and Profitability - Agent-operated stores offer advantages such as eliminating membership fees, providing a wider selection of products, and offering personalized services like repackaging [5][11] - Profitability for these stores relies on multiple revenue streams, including markup on products, rebates from Sam's Club, and membership fees [6][11] Group 3: Challenges and Risks - Despite the perceived success of agent-operated stores, many face challenges such as high competition from online platforms and the need to cover fixed costs like rent and utilities [9][11] - Legal risks are present, as operating under the Sam's Club name may lead to trademark infringement and regulatory compliance issues [12][15] Group 4: Strategic Considerations - The existence of agent-operated stores raises questions about why Sam's Club has not directly entered the county-level market, suggesting a strategic decision to allow agents to fill the gap [15][17] - The current trend indicates a shift from large warehouse retail models to more curated shopping experiences, which may not align with the operational costs of traditional membership stores in lower-density areas [17][18]

Core Insights - Sam's Club is undergoing a significant organizational restructuring, increasing its regions from six to seven, with the addition of Jiangsu and Zhejiang, while eliminating the original Eastern region. This change reflects a new phase of "scale efficiency" under the leadership of Jane Ewing, who has been in position for only 100 days [1][4]. Expansion Strategy - Sam's Club is rapidly expanding, with plans to open 11 new stores in 2025, surpassing the original target of eight. By June, six new stores had already opened, bringing the total to 56 nationwide. The expansion is heavily concentrated in the East China region, where 70% of the new stores are planned [2][4]. - The expansion strategy focuses on "high net worth sinking" into county-level markets, targeting affluent areas rather than just first-tier cities. For instance, Zhangjiagang, with a projected GDP per capita of 218,000 yuan (approximately $31,000) in 2024, exemplifies this approach [4][12]. Store Distribution and Characteristics - The planned new store openings include: - Shanghai Jinqiao - Third store in Pudong, opening by the end of 2025 - Jiangsu Zhangjiagang - Third store in a county-level city, opening in 2025 - Jiangsu Wuxi - Second store in Wuxi, opening in 2025 - Zhejiang Wenzhou - Seventh store in Zhejiang, opening in the first half of 2025 - Shaanxi Xi'an - First store in Northwest China, with at least two stores planned for 2025 - Hubei Wuhan - New store in Jiang'an District, opened on May 28 [3][4]. Organizational Restructuring - The restructuring into seven regions is seen as a crucial step towards "efficiency-driven" management. This change aims to enhance local competition and organizational vitality, particularly in the densely populated East China region, which houses nearly 40% of Sam's stores [5][12]. Performance and Operational Efficiency - Sam's Club is projected to exceed 100 billion yuan in sales in 2024, with top-performing stores achieving annual sales of 3.67 billion yuan, significantly outperforming traditional hypermarkets [6][12]. - The company's unique growth model is supported by three core engines: product selection, rapid delivery through front warehouses, and strong member trust. The product strategy involves a streamlined SKU count of around 4,000, with a focus on high-quality, exclusive items [6][8][11]. Supply Chain and Delivery Network - The integration of front warehouses allows for over 50% of sales to come from online channels, with 80% of orders delivered within an hour. This efficient delivery network is crucial for member acquisition and retention [10][11]. - The "first warehouse, then store" model has been validated in cities like Hefei, where online sales began before the physical store opened, demonstrating the effectiveness of this strategy [10][11]. Member Engagement and Trust - Membership revenue grew by 35% during the 2025 Spring Festival sales season, with average annual spending per member exceeding 10,000 yuan and a renewal rate of 92%. This high level of trust among members is a significant competitive advantage for Sam's Club [11][12].