Walmart(US:WMT)2024-12-06 21:15Financial Performance - Comparable sales in the U.S. increased by 4.9% and 4.7% for the three and nine months ended October 31, 2024, respectively, compared to the same periods in the previous fiscal year[65] - Net sales for the three months ended October 31, 2024, were $168.003 billion, a 5.4% increase from $159.439 billion in the same period of 2023[68] - Total revenues for the three months ended October 31, 2024, were $169.588 billion, a 5.5% increase from $160.804 billion in the prior year[78] - Walmart U.S. segment net sales increased by $5.5 billion or 5.0% for the three months ended October 31, 2024, and $14.7 billion or 4.5% for the nine months ended October 31, 2024, compared to the same periods in the previous fiscal year[80] - Walmart International segment net sales rose by $2.3 billion or 8.0% for the three months ended October 31, 2024, and $7.5 billion or 9.1% for the nine months ended October 31, 2024, driven by positive comparable sales in most international markets[81] - Sam's Club segment net sales increased by $0.9 billion or 3.9% for the three months ended October 31, 2024, and $2.8 billion or 4.4% for the nine months ended October 31, 2024, primarily due to comparable sales growth[83] Profitability Metrics - Operating income increased by $0.5 billion or 8.2% for the three months ended October 31, 2024, primarily due to strong growth in membership income globally[68] - Consolidated net income for the three months ended October 31, 2024, increased to $4.714 billion, up from $643 million in the same period last year, representing a $4.071 billion increase[78] - Gross profit as a percentage of net sales increased to 24.2% for the three months ended October 31, 2024, compared to 24.0% in the same period of 2023[68] - Membership and other income increased by 16.1% to $1.585 billion for the three months ended October 31, 2024, compared to $1.365 billion in the same period last year[78] - Gross profit margin as a percentage of net sales was 24.2% for the three months ended October 31, 2024, compared to 24.0% in the same period last year[78] Cash Flow and Investments - Free cash flow for the nine months ended October 31, 2024, was $6.222 billion, an increase of $1.882 billion compared to $4.340 billion in the prior year[76] - Net cash provided by operating activities for the nine months ended October 31, 2024, was $22.918 billion, an increase of $3.904 billion from $19.014 billion in the same period last year[76] - Net cash used in investing activities decreased to $12.7 billion for the nine months ended October 31, 2024, from $15.4 billion in the previous year, primarily due to proceeds from strategic investments[88] - The company completed the acquisition of Vizio Holding Corp. for approximately $2 billion in December 2024, which will be classified as cash used in investing activities[89] Debt and Equity - Total outstanding long-term debt decreased by $2.7 billion primarily due to maturities of certain long-term debt as of October 31, 2024[92] - The Company approved a fiscal 2025 annual dividend of $0.83 per share, an increase from $0.76 per share in fiscal 2024[93] - The Company repurchased 45.9 million shares at an average price of $66.37 per share, totaling $3.049 billion during the nine months ended October 31, 2024, compared to 25.9 million shares at $49.40 per share totaling $1.282 billion in the prior year[94] - The Company has $13.5 billion remaining under its $20 billion share repurchase program approved in November 2022[94] Operational Efficiency - Operating expenses as a percentage of net sales increased to 21.2% for the three months ended October 31, 2024, from 21.0% in the same period of 2023[68] - The company aims to improve operating income margin through productivity initiatives and a focus on higher-margin business segments[67] Market and Economic Conditions - The company expects continued uncertainty in the business and global economy due to inflationary trends and supply chain disruptions[63] Legal and Regulatory Matters - The Company has settled a lawsuit with the State of California for $7.5 million regarding hazardous waste management practices[106] - The settlement requires the Company to maintain current hazardous waste management practices and submit reports for four years[106] - In October 2023, the Company received a Finding of Violation from the EPA for alleged violations of the Clean Air Act[106] - The Company is currently evaluating the EPA's findings and cooperating with the investigation[106] - The Company cannot predict the outcome of the EPA investigation or the potential penalties[106] - The Company does not believe these matters will materially adversely affect its business or financial position[106] - The Company is involved in ongoing civil litigation related to driver classification and payment practices[106] - The Company is unable to predict the outcome of the civil litigation and arbitration claims[106] - The Company has received subpoenas and information requests from governmental entities regarding its driver platform[106] - The Company believes the outcomes of these matters will not have a material adverse effect on its cash flows[106]