• Total revenue was $122.7 billion, an increase of $5.1 billion, or 4.4%. Excluding currency2, total revenue was $120.7 billion, an increase of $3.2 billion, or 2.7%.
  • GAAP EPS declined 28% and Adjusted EPS2 increased 14%.
  • Walmart U.S. comp sales1,2 increased 2.1%, and comp traffic increased 0.8%.
  • Sam’s Club comp sales1,2 increased 3.8% led by comp traffic growth of 5.6%. Tobacco sales negatively impacted comp sales by approximately 140 basis points
  • Net sales at Walmart International were $30.3 billion, an increase of 11.7%. Excluding currency2, net sales were $28.3 billion, an increase of 4.5%. Eight of eleven markets posted positive comp sales, including our four largest markets.
  • The company generated $5.2 billion in operating cash flow.
  • Adjusted EPS2 excludes the impact of two items. The first item is an unrealized loss of $0.47 on the company’s equity investment in JD.com due to a change in accounting principles. The second item benefited EPS by $0.05 due to an adjustment in the provisional amount recorded in Q4 fiscal 2018 related to Tax Reform.

View Earnings Presentation

Key results

(Amounts in billions, except as noted. Dollar and percentage changes may not recalculate due to rounding.)

Walmart

Q1 FY19

Q1 FY18

$ Change

% Change

Revenue

$122.7

$117.5

$5.1

4.4%

Revenue (constant currency)2

$120.7

$117.5

$3.2

2.7%

Operating income

$5.2

$5.2

-$0.1

-1.6%

Operating income (constant currency)2

$5.0

$5.2

-$0.2

-4.0%

Free Cash Flow

Q1 FY19

$ Change

Returns to Shareholders

Q1 FY19

% Change

Operating cash flow

$5.2

-$0.2

Dividends

$1.5

-1.0%

Capital expenditures

$1.8

-$0.2

Share repurchases3

$0.5

-75.3%

Free cash flow2

$3.3

-$0.1

Total

$2.1

-44.5%

1 13-week period ended Apr. 27, 2018, compared to 13-week period ended Apr. 28, 2017, and excludes fuel. Including fuel, Walmart US and Sam’s Club comparable sales grew 2.2% and 5.3%, respectively, for Q1.
2 See additional information at the end of this release regarding non-GAAP financial measures.
3 $18.3 billion remaining of $20 billion authorization approved in October 2017. The company repurchased approximately 6 million shares in Q1 fiscal 2019.

Portfolio Repositioning

Thoughtful and deliberate consideration of the company’s portfolio of businesses is a key enabler of its strategic framework. Following is a summary of recently announced transactions.

Investment in Flipkart Group

  • On May 9, 2018, Walmart signed definitive agreements to become the largest shareholder in Flipkart, India’s innovative eCommerce company. The investment will help accelerate Flipkart’s customer-focused mission to transform commerce in India. Subject to regulatory approval in India, the company will pay approximately $16 billion for an initial stake of approximately 77 percent.
  • Walmart’s investment includes $2 billion of new equity funding, which will help Flipkart accelerate growth in the future. Walmart and Flipkart are also in discussions with additional potential investors.

Combination of Sainsbury and Asda, Walmart’s U.K. subsidiary

  • On April 30, 2018, Walmart and Sainsbury’s announced the proposed combination of these two businesses. Under the terms of the combination, Walmart would receive cash and approximately 42 percent of the combined business.

Sale of Banking Operations

  • Walmart recently reached agreements to divest banking operations in Walmart Canada and Walmart Chile. The proposed actions are consistent with the company’s focus on core retail capabilities.

Guidance

The company’s investment in Flipkart, summarized in this release, is expected to negatively impact fiscal year 2019 EPS by approximately $0.25 to $0.30 if the transaction closes at the end of the second quarter. As in past years, Walmart will update certain full year guidance with the second quarter release.

Unrealized gains and losses

Since taking an initial stake in JD.com, the market value of the company’s investment had increased $3.7 billion as of January 31, 2018. In prior periods, the company was not required to include unrealized gains/losses within net income. Beginning in fiscal year 2019, due to a change in U.S. accounting principles, Walmart is now required to include unrealized gains/losses of certain equity investments within net income. This quarter, the company recorded an unrealized loss of $1.8 billion due to a decline in the JD.com stock price during the quarter.

Segment results

(Amounts in billions, except as noted. Dollar and percentage changes may not recalculate due to rounding.)

This quarter, the company revised its corporate overhead allocations to the operating segments. Accordingly, previous segment operating income was recast to be comparable to the current period’s presentation.

Walmart U.S.

Q1 FY19

Q1 FY18

$ Change

% Change

Net sales

$77.7

$75.4

$2.3

3.1%

Comp sales (ex. fuel)1,2

2.1%

1.4%

70 bps

N/A

  •  Traffic

0.8%

1.5%

-70 bps

N/A

  •  Ticket

1.3%

-0.1%

140 bps

N/A

  •  eCommerce

~100 bps

~80 bps

~20 bps

N/A

Operating income

$3.9

$4.1

-$0.1

-3.1%

1 See additional information at the end of this release regarding non-GAAP financial measures.
13-week period ended Apr. 27, 2018, compared to 13-week period ended Apr. 28, 2017, and excludes fuel.

Walmart International

Q1 FY19

Q1 FY18

$ Change

% Change

Net sales

$30.3

$27.1

$3.2

11.7%

Net sales (constant currency)1

$28.3

$27.1

$1.2

4.5%

Operating income

$1.3

$1.1

$0.1

11.1%

Operating income (constant currency)1

$1.1

$1.1

$—

0.2%

Sam’s Club

Q1 FY19

Q1 FY18

$ Change

% Change

Net sales

$13.6

$14.0

-$0.4

-2.7%

Comp sales (ex. fuel)1,2

3.8%

1.6%

220 bps

N/A

  • Traffic

5.6%

1.1%

450 bps

N/A

  • Ticket

-1.8%

0.5%

-230 bps

N/A

  • eCommerce

~100 bps

~80 bps

~20 bps

N/A

Operating income

$0.3

$0.4

-$0.1

-18.5%