Walmart(WMT) - 2026 Q1 - Quarterly Report

Sales Performance - Comparable sales in the U.S. increased by 3.0% for the three months ended April 30, 2025, compared to the same period in the previous fiscal year[77] - Walmart U.S. segment had comparable sales growth of 3.1% driven by strong sales in health and wellness and grocery, with eCommerce net sales contributing approximately 3.4% to comparable sales[77] - Total revenues increased by $4.1 billion or 2.5$3.5 billion or 3.2% for the three months ended April 30, 2025, with eCommerce sales contributing approximately 3.4% to comparable sales[101] - Sam's Club U.S. segment net sales increased by $0.6 billion or 2.9$0.1 billion or 0.3% for the three months ended April 30, 2025, primarily due to negative currency exchange rate fluctuations[106] Financial Performance - Net sales for the three months ended April 30, 2025, were $163,981 million, reflecting a 2.5$159,938 million in the same period of 2024[81] - Operating income for the same period was $7,135 million, a 4.3$6,841 million in the previous year[81] - Consolidated net income decreased by $0.7 billion for the three months ended April 30, 2025, resulting in diluted net income per share of$0.56, a decrease of $0.07 compared to the previous year[100] - Gross profit rate increased by 12 basis points for the three months ended April 30, 2025, primarily due to disciplined inventory management in the Walmart U.S. segment[96] - Operating expenses as a percentage of net sales increased by 6 basis points for the three months ended April 30, 2025, primarily due to increased depreciation and amortization[97] Cash Flow and Investments - Net cash provided by operating activities was$5.4 billion for the three months ended April 30, 2025, an increase of $1.2 billion compared to the same period in 2024[93] - Net cash provided by operating activities increased to$5.4 billion for the three months ended April 30, 2025, compared to $4.2 billion in the same period of 2024, reflecting a growth of approximately 27$5.1 billion for the three months ended April 30, 2025, up from $4.4 billion in 2024, primarily due to increased payments for property and equipment[117] - Net cash provided by financing activities improved to$0.3 billion for the three months ended April 30, 2025, compared to a net cash used of $0.3 billion in the same period of 2024[118] Capital Expenditures and Debt - Total capital expenditures for the three months ended April 30, 2025, were$4,986 million, up from $4,676 million in the same period of 2024[88] - Total outstanding long-term debt increased by$4.6 billion to $40.6 billion as of April 30, 2025, primarily due to new long-term debt issuance[120] Shareholder Returns - The company approved a fiscal 2026 annual dividend of$0.94 per share, representing a 13% increase from the fiscal 2025 dividend of $0.83 per share[121] - During the three months ended April 30, 2025, the company repurchased$4.6 billion in shares, an increase of $3.5 billion compared to the same period in 2024, with an average price of$90.35 per share[123] Economic Outlook - The company anticipates continued uncertainty in the global economy due to various macroeconomic factors, which may impact future results[74] - The company aims to improve operating income margin through productivity initiatives and a focus on higher-margin business areas[78] - The company anticipates that cash flows from operations will be sufficient to meet its material cash requirements, including funding for capital expenditures and share repurchases[125] Credit Ratings - As of April 30, 2025, the company maintained strong credit ratings, with Standard & Poor's rating its commercial paper at A-1+ and long-term debt at AA[126] Return Metrics - Return on Assets (ROA) decreased to 7.5% for the trailing twelve months ended April 30, 2025, down from 7.9% in 2024[87] - Return on Investment (ROI) increased to 15.3% for the trailing twelve months ended April 30, 2025, compared to 15.0% in 2024[87] Taxation - The effective income tax rate was 22.6% for the three months ended April 30, 2025, compared to 24.6% for the same period in the previous fiscal year[99] Cash Position - Cash and cash equivalents were $9.3 billion as of April 30, 2025, slightly down from$9.4 billion in 2024, while the working capital deficit increased to $22.7 billion from$18.9 billion[115]