Chuck Grom • Gordon Haskett Research Advisors

Answer

Walmart US CEO & President John Furner confirmed growth across all income groups, noting delivery's broad appeal and excitement about gains with higher-income customers. EVP & CFO John David Rainey stated capital allocation remains focused on high-return investments like tech and automation, and noted they have been aggressive with share buybacks, repurchasing over $6 billion year-to-date.

Ask Fintool Equity Research AI

Answer

EVP – Merchandising Billy Bastek highlighted that the strongest comp contributions came from core, non-seasonal categories like portable power, lumber, concrete, water heaters, and interior paint, indicating broad strength. EVP & CFO Richard Mcphail reiterated the full-year gross margin guidance of approximately 33.4%, stating it would remain essentially flat with normal seasonal fluctuations, and deferred commentary on future years.

Ask Fintool Equity Research AI

Answer

CEO Tom Taylor described this as an excellent question with many puts and takes. Positive drivers include the customer shift to 'better and best' products, improved design services penetration, and sourcing efficiencies. Potential headwinds include the growth of the lower-margin commercial business and adjacent categories. While not providing a specific target, he stated he does not believe the margin has peaked and it could go higher over time, though the path will be gradual.

Ask Fintool Equity Research AI

Answer

CFO Steve Bramlage stated that the company guides at the total inside margin level but noted the FICS acquisition will pressure prepared food margins due to its product mix. This pressure is expected to be largely offset by mix enhancements in the grocery category, such as the shift from cigarettes to higher-margin nicotine alternatives. CEO Darren Rebelez confirmed the $0.02 fuel margin drag from FICS is expected to persist through FY26 and that falling retail fuel prices typically lead to margin expansion.

Ask Fintool Equity Research AI

Answer

CFO Steve Bramlage stated that while Casey's guides at a total inside margin level, the CEFCO mix pressures prepared food margins, which is largely offset by strength in the grocery category from favorable product mix shifts. President and CEO Darren Rebelez confirmed the $0.02 fuel margin drag from CEFCO is expected to continue through FY26 and affirmed that margins typically expand when retail fuel prices fall.

Ask Fintool Equity Research AI

Answer

COO Ken Bull quantified the full-year tariff impact at approximately 150 basis points. He stated that of the total ~200 basis point operating margin deleverage, about 60% is in gross margin and 40% is in SG&A. He also confirmed that shrink reserves are being held at the prior year-end level, with no improvement assumed in the current forecast.

Ask Fintool Equity Research AI

Answer

CEO Michael Creedon explained that while '3.0' multi-price stores remain the top performers, the performance gap has narrowed as the entire chain, including '1.0' and '2.0' stores, has lifted. CFO Stewart Glendinning attributed the higher SG&A guidance primarily to increased investments in store payroll and depreciation, which are expected to generate a positive return.

Ask Fintool Equity Research AI

Answer

CFO Jill Timm reaffirmed the full-year gross margin improvement guide of 30 to 50 basis points, stating it remains achievable despite tariff pressures. She suggested modeling Q2 gross margin on a two-year stack basis similar to Q1 and anticipated more significant improvement in the second half of the year as margin-accretive proprietary brand newness increases.

Ask Fintool Equity Research AI

Answer

President, CEO & Director Ron Vachris explained that efforts to speed up checkout include promoting digital membership card usage and testing 'Scan and Go done by Costco' pilots, which have shown very positive early results. He confirmed that the operations team is focused on the front-end experience. Regarding store hours, he stated that the company continues to evaluate warehouse hours of operation, noting the success of the gas station hour extension.

Ask Fintool Equity Research AI

Answer

President and CEO Ron Vachris highlighted the use of digital membership cards to speed up transactions and revealed that the company is running "Scan and Go done by Costco" pilots that have shown "very positive" early results. Regarding store hours, he confirmed that management continues to evaluate warehouse operating hours, similar to how they recently extended gas station hours.

Ask Fintool Equity Research AI

Answer

CEO Hal Lawton detailed the Q1 cadence: a strong January due to cold weather, followed by a slowdown in February and March from a delayed spring in the South. He confirmed that April was performing in line with their forecast and expressed confidence in the Q2 guidance. He did not specify areas of trade-down but reiterated consumer stability.

Ask Fintool Equity Research AI

Answer

CFO Robert Helm detailed that comps accelerated from a slow February to a strong mid-single-digit increase in March before weather impacted late April. CEO Eric van der Valk explained the second Army night is a long-planned enhancement to reward loyal members. Helm guided for gross margin to be above 40% in Q3 and below 40% in Q2 and Q4.

Ask Fintool Equity Research AI

Answer

Chairman & CEO Tony Spring described the consumer as remaining under pressure but choiceful, responding well to newness and value, suggesting any pull-forward might be in big-ticket items. COO & CFO Adrian Mitchell explained the Q1 share buyback signals confidence in the business's health and momentum, noting that while future buybacks are not in guidance, the company has $1.3 billion remaining in its authorization.

Ask Fintool Equity Research AI