Walmart(US:WMT)2023-06-01 16:00Sales Performance - Comparable sales in the U.S. increased by 7.1% for the three months ended April 30, 2023, compared to the same period in the previous fiscal year[64]. - Walmart U.S. segment had comparable sales growth of 7.5% for the same period, driven by strong food sales and higher inflation impacts[64]. - Sam's Club segment's comparable sales increased by 4.6% for the three months ended April 30, 2023, benefiting from growth in average ticket and transactions[64]. - Walmart U.S. segment net sales increased by $7.0 billion or 7.2% for the three months ended April 30, 2023, driven by comparable sales growth of 7.5%[77]. - Walmart International segment net sales increased by $2.8 billion or 12.0% for the three months ended April 30, 2023, compared to the same period in the previous fiscal year[78]. - Sam's Club segment net sales increased by $0.9 billion or 4.5% for the three months ended April 30, 2023, driven by comparable sales growth of 4.6%[79]. - Sam's Club eCommerce sales contributed approximately 1.5% to comparable sales, primarily from Curbside Pickup and Ship to Home[80]. Financial Performance - Net sales for the three months ended April 30, 2023, were $151,004 million, a 7.6% increase from $140,288 million in the same period of the previous year[66]. - Operating income for the three months ended April 30, 2023, was $6,240 million, up from $5,318 million in the same period last year[66]. - Operating income for the consolidated results was $6.24 billion for the three months ended April 30, 2023, compared to $5.32 billion in the same period last year[75]. - Total revenues increased by $10.7 billion or 7.6% for the three months ended April 30, 2023, compared to the same period in the previous fiscal year[75]. - Gross profit as a percentage of net sales decreased to 23.7% for the three months ended April 30, 2023, from 23.8% in the prior year[66]. - Operating income as a percentage of net sales increased to 4.1% for the three months ended April 30, 2023, compared to 3.8% in the same period last year[66]. - Gross profit margin as a percentage of net sales was 23.7% for the three months ended April 30, 2023, slightly down from 23.8% in the previous year[75]. Cash Flow and Investments - Net cash provided by operating activities was $4.6 billion for the three months ended April 30, 2023, representing an increase of $8.4 billion compared to the same period in the prior year[73]. - Free cash flow for the three months ended April 30, 2023, was $0.2 billion, an increase of $7.5 billion compared to the same period in the prior year[73]. - Net cash used in investing activities was $4.9 billion for the three months ended April 30, 2023, compared to $4.6 billion in the same period of the previous year[84]. - Net cash provided by financing activities decreased to $1.9 billion for the three months ended April 30, 2023, from $5.3 billion in the same period of the previous year[86]. Returns and Capital Expenditures - Return on Assets (ROA) was 4.5% for the trailing twelve months ended April 30, 2023, down from 5.5% in the previous year[67]. - Return on Investment (ROI) decreased to 12.7% for the trailing twelve months ended April 30, 2023, from 13.9% in the prior year[67]. - Total capital expenditures for the three months ended April 30, 2023, were $4.43 billion, an increase from $3.54 billion in the same period last year[71]. Tax and Dividend Information - The effective income tax rate increased to 29.5% for the three months ended April 30, 2023, compared to 27.5% for the same period in the previous fiscal year[75]. - The Board of Directors approved a fiscal 2024 annual dividend of $2.28 per share, an increase from $2.24 per share in fiscal 2023[89]. Credit Ratings and Market Risks - Credit ratings from Standard & Poor's are A-1+ for commercial paper and AA for long-term debt[98]. - Moody's Investors Service rates the company P-1 for commercial paper and Aa2 for long-term debt[98]. - Fitch Ratings assigns an F1+ rating for commercial paper and AA for long-term debt[98]. - The company acknowledges that credit ratings may be revised based on operating performance and economic conditions[98]. - A downgrade in credit ratings could increase future borrowing costs and limit access to capital markets[98]. - As of April 30, 2023, there were no material changes to market risks related to interest rates and currency exchange rates[101]. - The company refers to its Annual Report on Form 10-K for detailed disclosures about market risks[101]. Business Environment Outlook - The company expects continued uncertainty in the business environment due to inflation, geopolitical conditions, and supply chain disruptions[61]. - The company's working capital deficit increased to $17.0 billion as of April 30, 2023, from $13.3 billion a year earlier[83]. - The company repurchased 4.8 million shares at an average price of $143.46, totaling $686 million during the three months ended April 30, 2023[94].