10-QPeriod: Q1 FY2018

Walmart Inc. Quarterly Report for Q1 Ended Apr 30, 2017

Filed June 2, 2017For Securities:WMT

Summary

Walmart Inc.'s 10-Q filing for the period ending April 29, 2017, reveals a slight increase in total revenues to $117.54 billion, up from $115.90 billion in the prior year's comparable period. However, consolidated net income attributable to Walmart saw a modest decline to $3.04 billion from $3.08 billion, resulting in diluted earnings per share of $1.00, a slight increase from $0.98 due to a reduction in weighted-average shares outstanding. The company is strategically shifting its capital allocation towards e-commerce, technology, and supply chain investments, while slowing the pace of new store openings. This aligns with their goal of strong, efficient growth and integrating digital and physical shopping experiences. Despite investments in e-commerce and technology contributing to a slight increase in operating expenses as a percentage of net sales, Walmart continues to focus on its EDLP (Everyday Low Price) and EDLC (Everyday Low Cost) strategies.

Financial Highlights

49 data points
Beta

Revenue

$117.54B

25.4% Gross Margin

Net Income

$3.04B

2.6% Net Margin

EPS (Diluted)

$0.33

Total Assets

$199.72B

Cash & Equivalents

$6.54B

Free Cash Flow

$3.40B

Financial Statements
Beta
Revenue$117.54B
Cost of Revenue$87.69B
Gross Profit$29.85B
SG&A Expenses$24.62B
Operating Income$5.24B
Interest Expense$506.00M
Net Income$3.04B
EPS (Basic)$0.33
EPS (Diluted)$0.33
Shares Outstanding (Basic)9.11B
Shares Outstanding (Diluted)9.14B

Key Highlights

  • 1Total revenues increased by 1.4% to $117.54 billion for the three months ended April 29, 2017.
  • 2Consolidated net income attributable to Walmart decreased slightly to $3.04 billion from $3.08 billion.
  • 3Diluted EPS increased to $1.00 from $0.98, primarily driven by a reduction in weighted-average shares outstanding.
  • 4The company is strategically reallocating capital towards e-commerce and technology investments.
  • 5Walmart U.S. segment net sales increased by 2.9% to $75.44 billion.
  • 6Walmart International segment net sales decreased by 3.5% to $27.10 billion, impacted by currency fluctuations.
  • 7Share repurchases decreased to $2.19 billion from $2.74 billion in the prior year period.

Frequently Asked Questions

For the three months ended April 29, 2017, Walmart reported total revenues of $117.54 billion, a 1.4% increase from $115.90 billion in the prior year period. However, consolidated net income attributable to Walmart decreased slightly to $3.04 billion from $3.08 billion in the comparable period.

Walmart is strategically shifting its capital allocation. Investments are increasingly focused on e-commerce, technology, and supply chain improvements, while the pace of opening new stores and clubs is slowing down. This aligns with their objective of strong, efficient growth and better integrating their digital and physical retail offerings.

The Walmart U.S. segment showed a net sales increase of 2.9% to $75.44 billion. In contrast, the Walmart International segment experienced a 3.5% decrease in net sales to $27.10 billion, primarily due to unfavorable currency exchange rate fluctuations.

Walmart is involved in ongoing legal proceedings, including investigations related to the Foreign Corrupt Practices Act (FCPA) in various international markets, and employment claims against its subsidiary ASDA in the UK. While the company is cooperating with authorities and intends to defend itself vigorously, the ultimate outcome and financial impact remain uncertain, although management does not currently believe these matters will be material to the company's financial condition or results of operations.