Walmart(US:WMT)2025-05-15 10:58Revenue and Sales Performance - Revenue of $165.6 billion increased by 2.5%, or 4.0% in constant currency (cc) [6] - Global eCommerce sales grew 22%, driven by store-fulfilled pickup & delivery and marketplace [7] - Walmart U.S. comp sales rose by 4.5%, with strong performance in health & wellness and grocery [14] - Walmart's net sales for the three months ended April 30, 2025, were $163,981 million, representing a 2.5% increase from $159,938 million in the same period of 2024 [34] - Walmart U.S. net sales for the three months ended April 30, 2025, were $112,163 million, a 3.2% increase from $108,670 million in the same period of 2024 [37] - Walmart International net sales decreased by 0.3% to $29,754 million compared to $29,833 million in the prior year [37] - Sam's Club U.S. net sales increased by 2.9% to $22,064 million from $21,435 million year-over-year [37] - Consolidated net sales for Walmart were $163,981 million, reflecting a 2.5% increase from $159,938 million in the previous year [37] - U.S. comparable sales with fuel increased by 4.4% for the 13 weeks ended May 2, 2025, compared to 3.8% in the prior year [38] Operating Income and Profitability - Operating income increased by $0.3 billion, or 4.3%, with adjusted operating income growth of 3.0% (cc) [7] - Operating income increased by 4.3% to $7,135 million for the three months ended April 30, 2025, up from $6,841 million in the prior year [34] - Adjusted operating income for the consolidated segment was $7,135 million, a 4.4% increase from $6,841 million in the same period last year [37] - Operating income for Walmart International was $1,264 million, down 17.5% from $1,533 million in the previous year [37] - Operating income for the trailing twelve months ended April 30, 2025, was $29,642 million, up from $27,613 million in 2024 [65] Cash Flow and Financial Position - Operating cash flow increased by $1.2 billion to $5.4 billion, while free cash flow rose by $0.9 billion to $0.4 billion [12] - Cash flows from operating activities for the three months ended April 30, 2025, were $5,411 million, compared to $4,249 million in 2024, indicating improved cash generation [36] - Free cash flow for the three months ended April 30, 2025, was $425 million, an increase of $852 million compared to a negative $427 million in the prior year [48] - The company experienced a net cash used in investing activities of $5,093 million for the three months ended April 30, 2025, compared to $4,409 million in 2024 [36] Membership and Other Income - Membership income grew by 14.8%, contributing to a 3.7% increase in total membership and other income [7] Inventory and Assets - Inventory increased by 3.8% to $57.5 billion, maintaining healthy in-stock levels [12] - Walmart's inventories increased to $57,467 million as of April 30, 2025, from $56,435 million at the end of January 2025 [35] - Total assets as of April 30, 2025, were $262,372 million, a slight increase from $260,823 million at the end of January 2025 [35] - Average total assets increased to $258,213 million for the trailing twelve months ended April 30, 2025, compared to $249,554 million in 2024 [63] - Total assets as of April 30, 2025, were $262,372 million, an increase from $254,054 million in 2024 [65] Net Income and Earnings Per Share - Consolidated net income attributable to Walmart decreased by 12.1% to $4,487 million for the three months ended April 30, 2025, compared to $5,104 million in 2024 [34] - Consolidated net income for the trailing twelve months ended April 30, 2025, was $19,489 million, down from $19,681 million in 2024 [63] - Reported EPS for the three months ended April 30, 2025, was $0.56, with adjusted EPS at $0.61 after accounting for unrealized and realized gains and losses [56] - For the three months ended April 30, 2024, reported EPS was $0.63, with adjusted EPS at $0.60 after adjustments for unrealized and realized gains and losses and business reorganization charges [57] Tax and Returns - The effective tax rate for the three months ended April 30, 2025, was 22.6%, adjusted to 22.8% after accounting for investment gains and losses [56] - Return on assets (ROA) decreased to 7.5% for the trailing twelve months ended April 30, 2025, down from 7.9% in 2024, primarily due to increased average total assets and a slight decline in net income [60] - Return on investment (ROI) increased to 15.3% for the trailing twelve months ended April 30, 2025, compared to 15.0% in 2024, driven by higher operating income [60] Guidance and Future Expectations - The company expects net sales for Q2 FY26 to increase by 3.5% to 4.5% in constant currency [23] - Fiscal year 2026 guidance remains unchanged, with net sales expected to be between $674.5 billion and $681 billion [27] Debt and Liabilities - The company reported a decrease in interest expense on debt by 13.1%, totaling $519 million for the three months ended April 30, 2025 [34] - Walmart's total current liabilities increased to $102,920 million as of April 30, 2025, compared to $96,584 million at the end of January 2025 [35] - Average invested capital rose to $298,082 million for the trailing twelve months ended April 30, 2025, compared to $284,415 million in 2024 [65]