Walmart(US:WMT)2025-08-29 20:13Sales Performance - Comparable sales in the U.S. increased by 4.4% and 3.8% for the three and six months ended July 31, 2025, respectively, compared to the same periods in the previous fiscal year[77]. - Walmart U.S. segment had comparable sales growth of 4.7% and 3.9% for the three and six months ended July 31, 2025, driven by growth in average ticket and transactions[77]. - Net sales for the three months ended July 31, 2025, were $175,750 million, representing a 4.8% increase from the previous year[80]. - Total revenues increased by $8.1 billion or 4.8% for the three months ended July 31, 2025, and by $12.2 billion or 3.7% for the six months ended July 31, 2025[94]. - Walmart U.S. segment net sales increased by $5.6 billion or 4.8% for the three months and by $9.1 billion or 4.0% for the six months ended July 31, 2025[100]. - Walmart International segment net sales increased by $1.6 billion or 5.5% for the three months ended July 31, 2025, and by $1.6 billion or 2.6% for the six months ended July 31, 2025, compared to the same periods in the previous fiscal year[105]. - Sam's Club U.S. segment net sales increased by $0.8 billion or 3.4% for the three months ended July 31, 2025, and by $1.4 billion or 3.2% for the six months ended July 31, 2025, compared to the same periods in the previous fiscal year[109]. Financial Performance - Operating income for the three months ended July 31, 2025, was $7,286 million, a decrease of 8.2% compared to the same period in 2024[80]. - Consolidated net income for the three and six months ended July 31, 2025, was $7.2 billion and $11.8 billion, respectively, reflecting increases of $2.4 billion and $1.8 billion year-over-year[99]. - Membership and other income rose by 7.5% and 5.6% for the three and six months ended July 31, 2025, primarily due to growth in Walmart+ membership fees[101]. - Operating expenses as a percentage of net sales increased by 64 and 35 basis points for the three and six months ended July 31, 2025, respectively[81]. - Operating expenses as a percentage of net sales for Sam's Club U.S. increased by 44 basis points for the three months and 35 basis points for the six months ended July 31, 2025, primarily due to lower fuel sales and increased technology investments[112]. - Gross profit rate increased by 26 basis points for both the three and six months ended July 31, 2025, driven by disciplined inventory management[102]. - Gross profit rate for the Walmart International segment decreased by 80 basis points for the three months and 73 basis points for the six months ended July 31, 2025, primarily due to channel mix shifts and strategic growth investments[106]. Cash Flow and Capital Expenditures - Net cash provided by operating activities for the six months ended July 31, 2025, was $18.4 billion, an increase of $2.0 billion compared to the previous year[93]. - Free cash flow for the same period was $6.9 billion, representing an increase of $1.1 billion year-over-year[93]. - Total capital expenditures for the six months ended July 31, 2025, were $11,409 million, compared to $10,507 million in 2024[88]. - Cash and cash equivalents were $9.4 billion as of July 31, 2025, compared to $8.8 billion as of July 31, 2024[116]. Debt and Shareholder Returns - Total outstanding long-term debt increased by $3.7 billion to $39.651 billion as of July 31, 2025, primarily due to the issuance of new long-term debt[121]. - The Company approved a fiscal 2026 annual dividend of $0.94 per share, a 13% increase over the fiscal 2025 annual dividend of $0.83 per share[122]. - The company repurchased 67.4 million shares in the six months ended July 31, 2025, compared to 33.3 million shares in the same period of 2024, representing a 102.4% increase[124]. - The average price paid per share for repurchases was $92.03 in 2025, up from $62.15 in 2024, indicating a 48.2% increase[124]. - Total amount paid for share repurchases reached $6.2 billion in 2025, an increase of $4.1 billion compared to $2.1 billion in 2024, reflecting a 198.1% increase[124]. Economic Outlook and Risks - The company expects continued uncertainty in business due to macroeconomic conditions, including inflation and supply chain pressures[72]. - The effective income tax rate decreased to 23.3% and 23.0% for the three and six months ended July 31, 2025, respectively, down from 24.2% and 24.4% in the previous year[98]. - The company believes its cash flows from operations and access to capital markets will be sufficient to meet anticipated cash requirements and contractual obligations[126]. - As of July 31, 2025, the company's commercial paper rating was A-1+ and long-term debt rating was AA, indicating strong credit ratings[127]. - The company is subject to potential revisions of its credit ratings based on operating performance and economic conditions, which could affect future borrowing costs[128]. - There were no material changes to the company's market risks related to interest rates and currency exchange rates as of July 31, 2025[130].