Walmart(US:WMT)2024-06-07 20:45Financial Performance - Net sales for the three months ended April 30, 2024, were $159.938 billion, representing a 5.9% increase from $151.004 billion in the same period of 2023[66]. - Total revenues increased by $9.2 billion or 6.0% year-over-year, driven by strong comparable sales in U.S. segments and international markets[77]. - Consolidated net income increased by $3.4 billion to $5.307 billion, resulting in diluted net income per share of $0.63, an increase of $0.42 year-over-year[77]. - Operating income increased by $0.6 billion or 9.6% for the three months ended April 30, 2024, reaching $6.841 billion, primarily due to strong growth in membership income globally[66]. - Operating income for the period was $6.841 billion, up from $6.240 billion, with an operating income margin of 4.3%[77]. Sales Growth - Comparable sales in the U.S. increased by 4.9% for the three months ended April 30, 2024, compared to the same period in the previous fiscal year, driven by strong sales in grocery and health and wellness[64]. - Comparable sales at the Sam's Club segment increased by 4.6% for the three months ended April 30, 2024, benefiting from strong sales in grocery and consumables[64]. - Walmart U.S. segment net sales increased by $4.8 billion or 4.6% for the three months ended April 30, 2024, compared to the same period in the previous fiscal year[79]. - Walmart International segment net sales increased by $3.2 billion or 12.1% for the three months ended April 30, 2024, driven by strong sales in food and consumables[80]. - Sam's Club segment net sales increased by $0.9 billion or 4.6% for the three months ended April 30, 2024, benefiting from growth in transactions and strong sales in grocery and consumables[82]. Profitability Metrics - Gross profit as a percentage of net sales increased to 24.1% for the three months ended April 30, 2024, up from 23.7% in the same period of 2023[66]. - Gross profit margin increased to 24.1% from 23.7% in the prior year, driven by effective price management and lower markdowns[77]. - Return on Assets (ROA) improved to 7.9% for the trailing 12 months ended April 30, 2024, compared to 4.5% for the same period in 2023[68]. - Return on Investment (ROI) increased to 15.0% for the trailing 12 months ended April 30, 2024, up from 12.7% in the previous year[68]. Expenses and Cash Flow - Operating expenses as a percentage of net sales increased to 20.8% for the three months ended April 30, 2024, compared to 20.4% in the same period of 2023[66]. - Free cash flow for the three months ended April 30, 2024, was negative $0.427 billion, a decrease of $0.6 billion compared to positive $0.204 billion in the prior year[74]. - Net cash provided by operating activities was $4.2 billion for the three months ended April 30, 2024, down from $4.6 billion in the same period in 2023[84]. - Cash and cash equivalents decreased to $9.4 billion as of April 30, 2024, from $10.6 billion in the previous year[85]. Capital Expenditures and Debt - Total capital expenditures for the three months ended April 30, 2024, were $4.676 billion, compared to $4.429 billion in the same period last year[73]. - Total outstanding long-term debt decreased by $1.8 billion during the three months ended April 30, 2024, primarily due to maturities of certain long-term debt[90]. - The company has a $20 billion share repurchase program approved in November 2022, with $15.5 billion remaining as of April 30, 2024[93]. - In the three months ended April 30, 2024, the company repurchased 18.0 million shares at an average price of $59.05, totaling $1,059 million, compared to 14.3 million shares at $47.82, totaling $686 million in the same period of 2023[94]. Future Outlook - The company expects continued uncertainty in the business environment due to inflationary trends and supply chain disruptions[62]. - The company expects to meet material cash requirements primarily through cash from operations, including inventory purchases, employee costs, taxes, and interest payments[95]. - The company believes its cash flows from operations and access to capital markets will be sufficient to meet anticipated cash requirements, including capital expenditures and share repurchases[96]. Ratings and Market Risks - As of April 30, 2024, the company's commercial paper rating is A-1+ from Standard & Poor's and P-1 from Moody's, while its long-term debt rating is AA from Standard & Poor's and Aa2 from Moody's[97]. - There have been no material changes to the company's market risks related to interest rates, currency exchange rates, and equity investments as of April 30, 2024[100].