Walmart(US:WMT)2022-06-02 16:00Sales Performance - Comparable sales in the U.S. increased by 6.0% for the three months ended April 30, 2022, compared to the same period in the previous fiscal year[58]. - Walmart U.S. segment had comparable sales growth of 4.0% driven by growth in average ticket and strong sales in grocery[58]. - Sam's Club segment experienced a 17.4% increase in comparable sales for the three months ended April 30, 2022, benefiting from growth in transactions and average ticket[58]. - Walmart U.S. segment net sales increased by $3.7 billion or 4.0% for the three months ended April 30, 2022, totaling $96,904 million[73]. - Sam's Club segment net sales increased by $2.9 billion or 17.5% for the three months ended April 30, 2022, driven by comparable sales growth of 17.4%[76]. - Walmart International segment net sales decreased by $3.5 billion or 13.0% for the three months ended April 30, 2022, compared to the same period in the previous fiscal year[75]. Financial Performance - Consolidated net income for the three months ended April 30, 2022, was $2,103 million, a decrease of $0.7 billion compared to the same period in the previous fiscal year[72]. - Total revenues increased by $3.3 billion or 2.4% for the three months ended April 30, 2022, reaching $141,569 million[72]. - Operating income for the three months ended April 30, 2022, was $5,318 million, down from $6,909 million in the same period last year[72]. - Operating income for Walmart International segment decreased by $0.4 billion to $772 million, representing 3.2% of net sales for the three months ended April 30, 2022[75]. - Gross profit margin as a percentage of net sales decreased to 23.8% for the three months ended April 30, 2022, down from 24.7% in the previous year[72]. - Gross profit rate for Sam's Club segment decreased by 216 basis points for the three months ended April 30, 2022, primarily due to higher supply chain costs and inflation[77]. Cash Flow and Capital Expenditures - Free cash flow for the three months ended April 30, 2022, was negative $7,297 million, a decline of $7.9 billion compared to the same period in the prior year[70]. - Capital expenditures totaled $3,539 million for the three months ended April 30, 2022, up from $2,214 million in the same period last year[62]. - Net cash used in operating activities was $3.8 billion for the three months ended April 30, 2022, compared to net cash provided of $2.9 billion in the same period of 2021[79]. - Net cash used in investing activities was $4.6 billion for the three months ended April 30, 2022, compared to net cash provided of $5.9 billion in the same period of 2021[81]. - Net cash provided by financing activities was $5.3 billion for the three months ended April 30, 2022, compared to net cash used of $5.4 billion in the same period of 2021[83]. Expenses and Taxation - Operating, selling, general and administrative expenses increased by 4.5% to $29,404 million for the three months ended April 30, 2022[61]. - Operating expenses as a percentage of net sales increased by 45 basis points for the three months ended April 30, 2022, primarily due to increased wage costs[72]. - The effective income tax rate for the three months ended April 30, 2022, was 27.5%, compared to 26.9% for the same period in the previous fiscal year[72]. Strategic Focus and Outlook - The company is focusing on strong, efficient growth by increasing comparable store and club sales and accelerating eCommerce sales growth[57]. - Strategic capital allocation is shifting towards supply chain, customer-facing initiatives, and technology, with less emphasis on new store openings[62]. - The company anticipates continued uncertainty in business and the global economy due to various external factors, including inflation and supply chain disruptions[55]. Shareholder Returns and Credit Ratings - The Board of Directors approved a fiscal 2023 annual dividend of $2.24 per share, an increase from $2.20 per share in fiscal 2022[85]. - As of April 30, 2022, authorization for $8.3 billion of share repurchases remained under the current share repurchase program[86]. - The company maintains strong credit ratings with Standard & Poor's at A-1+ for commercial paper and AA for long-term debt, Moody's at P-1 and Aa2, and Fitch at F1+ and AA[91]. Legal and Regulatory Matters - The company has ongoing legal proceedings related to opioid dispensing claims, with over 2,150 cases included in the National Prescription Opiate Litigation as of May 20, 2022[98]. - The company is involved in a civil complaint filed by the U.S. Department of Justice regarding alleged violations of the Controlled Substances Act related to opioid distribution[98]. - The company is responding to a show cause notice from India's Directorate of Enforcement regarding alleged violations of Foreign Direct Investment rules prior to its acquisition of Flipkart[100]. - The company is defending against a lawsuit filed by the California Attorney General regarding the management of hazardous waste consumer products, with potential penalties exceeding $1 million[101]. - There has been no material change in the risk factors affecting the company's operations as disclosed in the Annual Report for the fiscal year ended January 31, 2022[103].