Walmart Inc. is a global omni-channel retailer that offers a wide range of products and services through its three main segments: Walmart U.S., Walmart International, and Sam's Club. The company is involved in mass merchandising, eCommerce, and operates membership-only warehouse clubs, providing products across categories such as grocery, general merchandise, and health and wellness **[0000104169-24-000056_wmt-20240131.htm:7]** **[0000104169-24-000056_wmt-20240131.htm:8]** **[0000104169-24-000056_wmt-20240131.htm:6]** **[0000104169-24-000056_wmt-20240131.htm:125]**. Walmart emphasizes its omni-channel capabilities, integrating physical stores with eCommerce to enhance customer experience **[0000104169-24-000056_wmt-20240131.htm:7]**.

1. **Walmart U.S.** - Operates as the largest segment, providing mass merchandising and eCommerce services in the U.S., offering products in grocery, general merchandise, and health and wellness categories.
   - **Grocery** - Includes dry grocery, snacks, dairy, and beverages.
   - **General Merchandise** - Covers entertainment, hardlines, fashion, and home products.
   - **Health and Wellness** - Encompasses pharmacy and medical products.
2. **Walmart International** - Expands the company's global presence with operations in 18 countries, including eCommerce and omni-channel initiatives.
3. **Sam's Club** - Functions as a membership-only warehouse club in the U.S., contributing to revenue through both physical locations and eCommerce.

57b5c61749e18f0c85a5ad3a5a623476690bd26eb36ea7d00914d5c2aaf1e533

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from Debt [USD, Millions]

Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

87177bb391ca68a923e2f560f701cb06a53693189027699f507b7973cc16acc7

| Segment/Quarter | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 |
|-----------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Walmart U.S. (in millions)** | **$103,901**  **[0000104169-23-000052_wmt-20230430.htm:14]**  | **$110,854**  **[0000104169-23-000097_wmt-20230731.htm:15]**  | **$109,419**  **[0000104169-23-000132_wmt-20231031.htm:19]**  | **N/A** | **$108,670**  **[0000104169-24-000105_wmt-20240430.htm:15]**  | **$115,300**  **[0000104169-24-000141_wmt-20240731.htm:16]**  | **N/A** | **N/A** |
| **Walmart International (in millions)** | **$26,604**  **[0000104169-23-000052_wmt-20230430.htm:14]**  | **$27,596**  **[0000104169-23-000097_wmt-20230731.htm:16]**  | **$28,022**  **[0000104169-23-000132_wmt-20231031.htm:19]**  | **N/A** | **$29,830**  **[0000104169-24-000105_wmt-20240430.htm:15]**  | **$29,600**  **[0000104169-24-000141_wmt-20240731.htm:16]**  | **N/A** | **N/A** |
| **Sam's Club (in millions)** | **$20,499**  **[0000104169-23-000052_wmt-20230430.htm:14]**  | **$21,830**  **[0000104169-23-000097_wmt-20230731.htm:15]**  | **$21,998**  **[0000104169-23-000132_wmt-20231031.htm:19]**  | **N/A** | **$21,440**  **[0000104169-24-000105_wmt-20240430.htm:15]**  | **$22,900**  **[0000104169-24-000141_wmt-20240731.htm:16]**  | **N/A** | **N/A** |

f97a5fcd0ff256bddb47b8ba621586d8f769d95816c032d357fa9b23737f6672

| Metric [Unit: $ Million] | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | Q1 2025 | Q2 2025 | Q3 2025 |
|--------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Walmart U.S.**         | 113,700  **[0000104169-23-000010_earningsreleasefy23q4.htm:2]**  | 103,900  **[0000104169-23-000052_wmt-20230430.htm:14]**  | 110,854  **[0000104169-23-000097_wmt-20230731.htm:15]**  | 109,419  **[0000104169-23-000132_wmt-20231031.htm:19]**  | 441,817 (FY)  **[0000104169-24-000056_wmt-20240131.htm:127]**  | N/A | 115,347  **[0000104169-24-000141_wmt-20240731.htm:30]**  | N/A |
| **Sam's Club**           | 21,400  **[0000104169-23-000010_earningsreleasefy23q4.htm:2]**   | 20,500  **[0000104169-23-000052_wmt-20230430.htm:14]**   | 21,830  **[0000104169-23-000097_wmt-20230731.htm:15]**   | 21,998  **[0000104169-23-000132_wmt-20231031.htm:19]**   | 86,179 (FY)  **[0000104169-24-000056_wmt-20240131.htm:127]**   | N/A | 22,853  **[0000104169-24-000141_wmt-20240731.htm:16]**  | N/A |
| **Grocery (Walmart U.S.)** | N/A | N/A | 66,240  **[0000104169-23-000097_wmt-20230731.htm:16]**  | 66,289  **[0000104169-23-000132_wmt-20231031.htm:20]**  | 264,210 (FY)  **[0000104169-24-000056_wmt-20240131.htm:127]**  | N/A | N/A | N/A |
| **General Merchandise (Walmart U.S.)** | N/A | N/A | 29,076  **[0000104169-23-000097_wmt-20230731.htm:16]**  | 26,579  **[0000104169-23-000132_wmt-20231031.htm:20]**  | 113,985 (FY)  **[0000104169-24-000056_wmt-20240131.htm:127]**  | N/A | N/A | N/A |
| **Health and Wellness (Walmart U.S.)** | N/A | N/A | 13,374  **[0000104169-23-000097_wmt-20230731.htm:16]**  | 14,173  **[0000104169-23-000132_wmt-20231031.htm:20]**  | 54,898 (FY)  **[0000104169-24-000056_wmt-20240131.htm:127]**  | N/A | N/A | N/A |
| **Other Categories (Walmart U.S.)** | N/A | N/A | 2,164  **[0000104169-23-000097_wmt-20230731.htm:16]**  | 2,378  **[0000104169-23-000132_wmt-20231031.htm:20]**  | 8,724 (FY)  **[0000104169-24-000056_wmt-20240131.htm:127]**  | N/A | N/A | N/A |
| **Grocery and Consumables (Sam's Club)** | N/A | N/A | 14,325  **[0000104169-23-000097_wmt-20230731.htm:16]**  | 14,512  **[0000104169-23-000132_wmt-20231031.htm:20]**  | 56,449 (FY)  **[0000104169-24-000056_wmt-20240131.htm:127]**  | N/A | N/A | N/A |
| **Fuel, Tobacco, and Other Categories (Sam's Club)** | N/A | N/A | 3,338  **[0000104169-23-000097_wmt-20230731.htm:16]**  | 3,523  **[0000104169-23-000132_wmt-20231031.htm:20]**  | 12,854 (FY)  **[0000104169-24-000056_wmt-20240131.htm:127]**  | N/A | N/A | N/A |
| **Home and Apparel (Sam's Club)** | N/A | N/A | 2,428  **[0000104169-23-000097_wmt-20230731.htm:16]**  | 2,084  **[0000104169-23-000132_wmt-20231031.htm:20]**  | 9,263 (FY)  **[0000104169-24-000056_wmt-20240131.htm:127]**  | N/A | N/A | N/A |
| **Health and Wellness (Sam's Club)** | N/A | N/A | 1,186  **[0000104169-23-000097_wmt-20230731.htm:16]**  | 1,313  **[0000104169-23-000132_wmt-20231031.htm:20]**  | 5,005 (FY)  **[0000104169-24-000056_wmt-20240131.htm:127]**  | N/A | N/A | N/A |
| **Technology, Office, and Entertainment (Sam's Club)** | N/A | N/A | 553  **[0000104169-23-000097_wmt-20230731.htm:16]**  | 566  **[0000104169-23-000132_wmt-20231031.htm:20]**  | 2,608 (FY)  **[0000104169-24-000056_wmt-20240131.htm:127]**  | N/A | N/A | N/A |

b0058ef538a07600be3d55c027bcc17c6b175957433007b111a9686969a2d6cd

1. As you continue to invest in areas like price reductions and wage increases to lay the foundation for future growth, how do you balance these investments with the need to accelerate enterprise-wide profit growth, and are you seeing diminishing returns in these areas that might impact profitability next year and beyond?

2. With the competitive landscape intensifying, particularly from both traditional and non-traditional retail players, how is Walmart planning to sustain its market share gains in the U.S., and what strategic adjustments are you making in response to competitors' actions?

3. Given the changes in your fourth-quarter operating income guidance and the significant wage investments at Sam's Club, how are you managing gross margin expectations, especially in light of continued pressure from higher health and wellness sales and potential e-commerce profitability challenges in the U.S.?

4. With the growth in Walmart Plus memberships, can you elaborate on how this is translating into increased customer spend and loyalty, and how you are leveraging the data from these members to drive growth in your new businesses?

5. Despite a positive inflection in general merchandise sales, the mix shift towards consumables continues to pressure gross margins; when do you anticipate a more balanced growth between general merchandise and consumables, and what impact will this have on overall gross margin expansion?

d643d03045885f719282045564bafdbf4fe360850ad279fe81e39f4a7fdbb3ef

49c6c6a6517a1eac909e7d6ed9cdf1498189b62ecfe045ad4f419b4d2ed311b7

### Q3 2025 Earnings Call
   - **Issued Period**: Q3 2025
   - **Guided Period**: FY 2025
   - **Guidance**:
     - **Full Year Guidance**:
       - **Sales Growth**: **4.8% to 5.1%** on a constant currency basis.
       - **Operating Income Growth**: **8.5% to 9.25%** on a constant currency basis.
       - **Adjusted EPS**: **$2.42 to $2.47**.
     - **Fourth Quarter Guidance**:
       - **Sales Growth**: Implied constant currency growth of **3% to 4%**.
       - **Operating Income Growth**: Implied constant currency growth of **5% to 7.5%**.
       - **Currency Impact**: Expected headwind to Q4 reported sales and operating income growth of approximately **100 basis points and 200 basis points**, respectively  **[WMT_3409376_7]** .

### Q2 2025 Earnings Call
   - **Issued Period**: Q2 2025
   - **Guided Period**: Q3 2025 and FY 2025
   - **Guidance**:
     - **Q3 2025 Guidance**:
       - **Sales Growth**: **3.25% to 4.25%**.
       - **Operating Income Growth**: **3% to 4.5%**.
       - **EPS**: **$0.51 to $0.52**.
     - **Full Year FY 2025 Guidance**:
       - **Sales Growth**: **3.75% to 4.75%**.
       - **Operating Income Growth**: **6.5% to 8%**.
       - **Adjusted EPS**: **$2.35 to $2.43**  **[WMT_3399104_7]** **[WMT_3399104_6]** .

### Q1 2025 Earnings Call
   - **Issued Period**: Q1 2025
   - **Guided Period**: Q2 2025
   - **Guidance**:
     - **Q2 Sales Growth**: **3.5% to 4.5%**.
     - **Q2 Operating Income Growth**: **3% to 4.5%**.
     - **Q2 EPS**: **$0.62 to $0.65**.
     - **Inflation Expectations**: Inflation expected to remain close to current levels, with general merchandise being more deflationary and consumables and food slightly above flat to up 1%  **[WMT_3389636_6]** **[WMT_3389636_19]** .

### Q4 2024 Earnings Call
   - **Issued Period**: Q4 2024
   - **Guided Period**: FY 2025 and Q1 2025
   - **Guidance**:
     - **FY 2025 Guidance**:
       - **EPS**: **$6.70 to $7.12** on a pre-split basis and **$2.23 to $2.37** on a post-split basis.
       - **Sales Growth**: **3% to 4%** on a constant currency basis.
       - **Operating Income Growth**: **4% to 6%**.
       - **Segment Growth**: Walmart U.S. and Sam's Club U.S. net sales growth expected to align with enterprise growth; international growth expected to be above enterprise growth.
       - **CapEx**: **3% to 3.5% of sales** for the next couple of years.
       - **Leap Year and 53rd Week Impact**: FY '25 is a leap year, adding an additional day in Q1, and there will be a 53rd week for comp sales in Q4.
       - **Operating Income vs. Sales Growth**: Operating income growth expected to exceed sales growth by **150 basis points** at the midpoint.
     - **Q1 2025 Guidance**:
       - **Sales Growth**: **4% to 5%**.
       - **Operating Income Growth**: **3% to 4.5%**.
       - **Q1 EPS**: **$1.48 to $1.56** on a pre-split basis and **$0.49 to $0.52** on a post-split basis  **[WMT_3374030_8]** **[WMT_3374030_7]** .

36424c493647435c06d4afaf6237250ba337d8a2f9a7fefec1475d3199a86c1b

71309e4e8cf6b6cc43f536a36bb5c89d097ba1cd5716f965de9621b78a150454

- Brick and mortar, eCommerce, and omni-channel retailers operating department, drug, discount, variety, and specialty stores, supermarkets, hypermarkets, and supercenter-type stores, wholesale clubs, home-improvement stores, specialty electronics stores, cash & carry operations, and convenience stores  **[0000104169-24-000056_wmt-20240131.htm:12]** .
- Companies offering services in digital advertising, fulfillment services, health and wellness, and financial services  **[0000104169-24-000056_wmt-20240131.htm:12]** .
- Social commerce platforms  **[0000104169-24-000056_wmt-20240131.htm:9]** .
- National, regional, or international chains or those with a national or international omni-channel or eCommerce presence  **[0000104169-24-000056_wmt-20240131.htm:63]** .
- Other discount, department, drug, dollar, variety, and specialty stores, warehouse clubs, and supermarkets  **[0000104169-24-000056_wmt-20240131.htm:63]** .
- eCommerce, health and wellness, financial services, advertising, and data service businesses  **[0000104169-24-000056_wmt-20240131.htm:63]** .
- Local, regional, national, and global physical, eCommerce, and omni-channel retailers, social commerce platforms, wholesale club operators, and retail intermediaries  **[0000104169-24-000056_wmt-20240131.htm:23]** .
- Companies offering services in digital advertising, fulfillment and delivery services, health and wellness, and financial services  **[0000104169-24-000056_wmt-20240131.htm:23]** .

2dd6a77ca6d92530db4a1d30e8c6dbff80c1edd309d20b49c8ad69bad288ccac

d18e532546853c80c38e4850bd8af74b2de292940c4f882ec6c8171aef203138

8603f9e01c26fbdf8f7e192eebd2bbb7e0eff6809c9177262c33fa19fde30b35

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

U.S. Operations

Non-U.S. Operations

Walmart International

- Mexico and Central America

- United Kingdom

- Canada

- China

- Other Markets

Walmart U.S.

Sam's Club

Total Revenue

5de23b200929bd0a09842e5eefbbc779113fb85124da101697be4100dbaf4b66

| Name                  | Position                                                                 | Start Date       | Short Bio                                                                                                                                                                                                 |
|-----------------------|--------------------------------------------------------------------------|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Daniel J. Bartlett    | Executive Vice President, Corporate Affairs                              | June 2013        | Daniel J. Bartlett has been serving as the Executive Vice President, Corporate Affairs at Walmart Inc. since June 2013. Prior to this role, he was the CEO and President of U.S. Operations at Hill & Knowlton, Inc.  **[0000104169-24-000056_wmt-20240131.htm:19]** .                      |
| Rachel Brand          | Executive Vice President, Global Governance, Chief Legal Officer, and Corporate Secretary | April 2018       | Rachel Brand has been serving in her current roles at Walmart Inc. since April 2018. She was previously the Associate Attorney General in the U.S. Department of Justice  **[0000104169-24-000056_wmt-20240131.htm:19]** .                                                                  |
| David M. Chojnowski   | Senior Vice President and Controller                                      | January 2017     | David M. Chojnowski has been the Senior Vice President and Controller at Walmart Inc. since January 2017. He was previously Vice President and Controller for Walmart U.S.  **[0000104169-24-000056_wmt-20240131.htm:19]** **[0000104169-23-000020_wmt-20230131.htm:19]** .                                                             |
| John Furner           | Executive Vice President, President, and Chief Executive Officer, Walmart U.S. | November 2019    | John Furner has been in his current role since November 2019. He was previously the President and CEO of Sam's Club  **[0000104169-24-000056_wmt-20240131.htm:19]** .                                                                                                                       |
| Suresh Kumar          | Executive Vice President, Global Chief Technology Officer and Chief Development Officer | July 2019        | Suresh Kumar has been serving in his current roles at Walmart since July 2019. He was previously Vice President and General Manager at Google LLC  **[0000104169-24-000056_wmt-20240131.htm:19]** .                                                                                          |
| Kathryn McLay         | Executive Vice President, President and Chief Executive Officer, Walmart International | August 2023      | Kathryn McLay has been in her current role since August 2023. She was previously the President and CEO of Sam's Club  **[0000104169-24-000056_wmt-20240131.htm:19]** .                                                                                                                      |
| C. Douglas McMillon   | President and Chief Executive Officer                                     | February 2014    | C. Douglas McMillon has been serving as the President and CEO of Walmart Inc. since February 2014. He has held various leadership positions at Walmart over 33 years  **[0000104169-24-000056_wmt-20240131.htm:19]** **[0000104169-24-000078_wmt-20240424.htm:21]** .                                                                    |
| Donna Morris          | Executive Vice President, Global People, and Chief People Officer         | February 2020    | Donna Morris has been serving in her current roles at Walmart since February 2020. She previously worked at Adobe Inc. as Chief Human Resources Officer and Executive Vice President, Employee Experience  **[0000104169-24-000056_wmt-20240131.htm:19]** .                                   |
| Christopher Nicholas  | Executive Vice President, President and Chief Executive Officer, Sam's Club | September 2023   | Christopher Nicholas has been in his current role since September 2023. He was previously the Executive Vice President and Chief Operating Officer of Walmart U.S.  **[0000104169-24-000056_wmt-20240131.htm:19]** **[0000104169-24-000078_wmt-20240424.htm:78]** .                                                                      |
| John David Rainey     | Executive Vice President and Chief Financial Officer                      | June 2022        | John David Rainey has been serving as the Executive Vice President and CFO of Walmart Inc. since June 2022. He was previously the CFO and Executive Vice President, Global Customer Operations for PayPal Holdings, Inc.  **[0000104169-24-000056_wmt-20240131.htm:19]** **[0000104169-23-000020_wmt-20230131.htm:19]** .                |
| Bob Moritz            | Member of the Board of Directors, Audit Committee, and Technology and eCommerce Committee | August 15, 2024 | Bob Moritz was appointed to Walmart's Board of Directors on August 15, 2024. He previously had a long career at PwC, serving as the Global Chair until his retirement in June 2024  **[WMT_3399104_3]** **[0000104169-24-000132_pressrelease.htm:0]** **[0000104169-24-000132_wmt-20240815.htm:1]** .                                                    |

0eb588b4e8923b8891bb3f38c09d1537c1a77ba37e9966a74792870bfe9c4168

| Program Details          | Program 1          |
|--------------------------|--------------------|
| Approval Date            | November 2022  **[0000104169-24-000178_wmt-20241031.htm:40]** **[0000104169-24-000178_wmt-20241031.htm:49]**  |
| End Date/Duration        | No expiration date  **[0000104169-24-000178_wmt-20241031.htm:40]** **[0000104169-24-000178_wmt-20241031.htm:49]**  |
| Total additional amount  | **$20 billion**  **[0000104169-24-000178_wmt-20241031.htm:40]** **[0000104169-24-000178_wmt-20241031.htm:49]**  |
| Remaining authorization  | **$13.5 billion** (as of 2024-10-31)  **[0000104169-24-000178_wmt-20241031.htm:40]** **[0000104169-24-000178_wmt-20241031.htm:49]**  |
| Details                  | Manage capital structure and return value to shareholders  **[0000104169-24-000056_wmt-20240131.htm:108]** **[0000104169-24-000056_wmt-20240131.htm:81]** **[0000104169-23-000097_wmt-20230731.htm:35]** **[0000104169-23-000132_wmt-20231031.htm:40]** **[0000104169-23-000052_wmt-20230430.htm:32]**  |

7a902132a22a42feffcc0a739c4050a9e335e2b787c23603a1fd6354d66d883c

**Quarterly guidance for Q4 2025:**
- **Sales Growth**: 3% to 4%  **[WMT_3409376_7]**  (no prior guidance)  
- **Operating Income Growth**: 5% to 7.5%  **[WMT_3409376_7]**  (no prior guidance)  
- **Currency Impact**: Headwind of ~100 bps to sales and ~200 bps to operating income  **[WMT_3409376_7]**  (no prior guidance)

**Annual guidance for FY 2025:**
- **Sales Growth**: 4.8% to 5.1%  **[WMT_3409376_7]**  (raised from 3.75% to 4.75%  **[WMT_3399104_7]** **[WMT_3399104_6]** )  
- **Operating Income Growth**: 8.5% to 9.25%  **[WMT_3409376_7]**  (raised from 6.5% to 8%  **[WMT_3399104_7]** **[WMT_3399104_6]** )  
- **Adjusted EPS**: $2.42 to $2.47  **[WMT_3409376_7]**  (raised from $2.35 to $2.43  **[WMT_3399104_7]** **[WMT_3399104_6]** )  

c681bdb8af17be23e8b4991705cdcbe6dfac16dc6632a9aeb25ad6e6cead7cf9

| Name               | Start Date | End Date | Reason for Change |
|--------------------|------------|----------|-------------------|
| Ernst & Young LLP | 1969       | Present  | Current auditor   |  **[0000104169-24-000056_wmt-20240131.htm:88]**  |

3057c41b7c265d7ed681c0db713d4d797f2a5e189becf24c77ebafbb600a0f0c

650f8cea9eb2311f1ad7aa92c70565b238525ea2183f0d528812c59c9619c822

- Total Revenue: $169.588B (+5.5% YoY)  **[0000104169-24-000178_wmt-20241031.htm:2]** **[0000104169-24-000178_wmt-20241031.htm:21]** **[0000104169-24-000178_wmt-20241031.htm:20]** **[0000104169-24-000178_wmt-20241031.htm:37]**   
- Walmart U.S.: $114.875B (+5.0% YoY)  **[0000104169-24-000178_wmt-20241031.htm:2]** **[0000104169-24-000178_wmt-20241031.htm:21]** **[0000104169-24-000178_wmt-20241031.htm:20]** **[0000104169-24-000178_wmt-20241031.htm:37]**   
  • Health & Wellness: $1.64B (+25% YoY)  **[0000104169-24-000178_wmt-20241031.htm:2]** **[0000104169-24-000178_wmt-20241031.htm:21]** **[0000104169-24-000178_wmt-20241031.htm:20]** **[0000104169-24-000178_wmt-20241031.htm:37]**   
- Walmart International: $30.277B (+8% YoY)  **[0000104169-24-000178_wmt-20241031.htm:2]** **[0000104169-24-000178_wmt-20241031.htm:21]** **[0000104169-24-000178_wmt-20241031.htm:20]** **[0000104169-24-000178_wmt-20241031.htm:37]**   
  • China: $5.012B (+18% YoY)  **[0000104169-24-000178_wmt-20241031.htm:21]**   
  • Other Markets: $7.398B (+29% YoY)  **[0000104169-24-000178_wmt-20241031.htm:21]**   
- Sam’s Club Grocery & Consumables: $15.556B (+7% YoY)  **[0000104169-24-000178_wmt-20241031.htm:2]** **[0000104169-24-000178_wmt-20241031.htm:21]** **[0000104169-24-000178_wmt-20241031.htm:20]** **[0000104169-24-000178_wmt-20241031.htm:37]**   
- Sam’s Club Fuel, Tobacco & Other: $2.980B (-15% YoY)  **[0000104169-24-000178_wmt-20241031.htm:2]** **[0000104169-24-000178_wmt-20241031.htm:21]** **[0000104169-24-000178_wmt-20241031.htm:20]** **[0000104169-24-000178_wmt-20241031.htm:37]**   
- Sam’s Club Technology: $602M (+6% YoY)  **[0000104169-24-000178_wmt-20241031.htm:2]** **[0000104169-24-000178_wmt-20241031.htm:21]** **[0000104169-24-000178_wmt-20241031.htm:20]** **[0000104169-24-000178_wmt-20241031.htm:37]**   
- Operating Income: $6.708B (+8% YoY)  **[0000104169-24-000178_wmt-20241031.htm:2]** **[0000104169-24-000178_wmt-20241031.htm:4]** **[0000104169-24-000178_wmt-20241031.htm:6]** **[0000104169-24-000178_wmt-20241031.htm:3]**   
- Net Income: $4.577B (vs. $453M, >+900% YoY)  **[0000104169-24-000178_wmt-20241031.htm:2]** **[0000104169-24-000178_wmt-20241031.htm:4]** **[0000104169-24-000178_wmt-20241031.htm:6]** **[0000104169-24-000178_wmt-20241031.htm:3]**   
- EPS (Diluted): $0.56 (+229% YoY)  **[0000104169-24-000178_wmt-20241031.htm:2]** **[0000104169-24-000178_wmt-20241031.htm:4]** **[0000104169-24-000178_wmt-20241031.htm:6]** **[0000104169-24-000178_wmt-20241031.htm:3]** **[0000104169-23-000132_wmt-20231031.htm:9]**   

51582103a49dadf6a9057f3e88bc0b60b7d4ee31d6766028d5f530cb480d1390

9b995347d5b792d784b8b88dee0bdda3b463259ea91debfa5c9b24b3af3b1749

1. **Fiscal 2025 Outlook**  
   **Q:** What's driving the optimistic FY25 outlook and margin expectations?  
   **A:** Management feels better about the economy compared to last year, having avoided a recession.  **[WMT_3374030_10]**  They're expecting **3–4% constant currency sales growth** for FY25, up from **2.5–3%** previously.  **[WMT_3374030_10]**  Growth in higher-margin areas like advertising is improving gross profit without raising prices.  **[WMT_3374030_10]**  They anticipate some SG&A deleverage due to business mix changes but are focused on growing operating income.  **[WMT_3374030_10]** 

2. **Gross Margin Improvement**  
   **Q:** What drove the gross margin increase and eCommerce profitability?  
   **A:** Gross margin improved by nearly **40 basis points**, driven by lower markdowns and inventory down **4.5%**.  **[WMT_3374030_11]**  Strong sell-through and better inventory management reduced markdowns significantly.  **[WMT_3374030_11]**  Cost of fulfillment in eCommerce decreased **20%** over the past year, improving contribution margins.  **[WMT_3374030_11]**  They have a line of sight to eCommerce breakeven when including advertising and fulfillment services.  **[WMT_3374030_11]** 

3. **Advertising Growth and Acquisition**  
   **Q:** Can you elaborate on advertising growth and the VIZIO acquisition?  
   **A:** Advertising grew **28%** for the year, reaching **$3.4 billion**, contributing an estimated **$300–$400 million** to EBIT.  **[WMT_3374030_14]**  The acquisition of VIZIO accelerates their advertising platform into the connected TV business, enhancing profitability growth.  **[WMT_3374030_14]**  However, details are limited until the deal closes.  **[WMT_3374030_14]** 

4. **Strategic Initiatives and Investments**  
   **Q:** What are the key measures of success and investment plans for FY25?  
   **A:** The focus is on maintaining top-line growth across categories and leveraging price opportunities in general merchandise.  **[WMT_3374030_12]**  The automation plan aims to improve inventory accuracy and associate productivity, reducing markdowns.  **[WMT_3374030_12]**  Growth in Marketplace and advertising will help change the business mix and shape of the P&L.  **[WMT_3374030_12]**  Management believes they can grow operating income faster than sales while investing aggressively in the business.  **[WMT_3374030_12]** 

5. **Transaction Growth and Customer Traffic**  
   **Q:** What drove strong transaction comps, and can this momentum continue?  
   **A:** Transaction comps were up **4.3%**, with more customers shopping more often, including a **17%** increase in weekly active eCommerce customers.  **[WMT_3374030_15]**  Growth is seen across consumables, food, and general merchandise.  **[WMT_3374030_15]**  Increased use of same-day services and express deliveries is enhancing convenience.  **[WMT_3374030_15]**  Improved inventory management and technology are aiding accuracy and customer satisfaction.  **[WMT_3374030_15]** 

6. **Technology and AI Initiatives**  
   **Q:** How is AI impacting the business now and in the future?  
   **A:** Management is excited about generative AI to improve customer experience, associate productivity, and reduce costs.  **[WMT_3374030_16]**  AI has notably improved search functionality, enhancing solution-oriented search experiences.  **[WMT_3374030_16]**  They've deployed "My Assistant" for associates, providing access to AI tools.  **[WMT_3374030_16]**  At Sam's Club, AI is used for an "easy exit" process and inventory management, removing **35 million tasks** for associates last year.  **[WMT_3374030_16]** 

7. **Market Share Gains**  
   **Q:** How are market share gains among higher-income consumers progressing?  
   **A:** They gained share in virtually every category, with higher-income households (over **$100,000**) being significant contributors.  **[WMT_3374030_18]**  In general merchandise, **two-thirds** of share gains came from this demographic through digital channels.  **[WMT_3374030_18]**  The value proposition of convenience and price is resonating across income levels.  **[WMT_3374030_18]** 

8. **General Merchandise and Remodels**  
   **Q:** What is the performance of general merchandise and store remodels?  
   **A:** Store remodels are showing promising results, with plans to remodel **650** more stores after completing nearly **700** last year.  **[WMT_3374030_13]**  There's more space for customers, improving results in apparel, home, beauty, and pet departments.  **[WMT_3374030_13]**  Strong sell-throughs, especially during seasonal events like Valentine's Day, indicate positive trends.  **[WMT_3374030_13]** 

9. **Pricing Strategy and Rollbacks**  
   **Q:** Can you detail the rollback strategy and its impact?  
   **A:** Rollbacks are up around **50%** from last year, spread evenly across categories.  **[WMT_3374030_17]**  In general merchandise, prices are down low single digits.  **[WMT_3374030_17]**  Key items like French bread returned to **$1**, driving sales up **40%** over last year.  **[WMT_3374030_17]**  Merchants balance funding through various levers like initial margin and inventory management.  **[WMT_3374030_17]** 

3ee9f8066b4ffa1cb578a835f51f7cb7ba5424a7bc9676da077b966be7446fe4

| Year | Amount Due (in millions) | Debt Type                     | Interest Rate (%) | % of Total Debt                                                                 |
|----------|------------------------------|------------------------------------|------------------------|------------------------------------------------------------------------------------|
| 2024     | 3,579                        | Short-term borrowings             | N/A                    | 9.7% = (3,579 / 36,891) * 100 **[0000104169-24-000178_wmt-20241031.htm:3]** **[0000104169-24-000178_wmt-20241031.htm:12]**                                     |
| 2024     | 3,246                        | Long-term debt due within one year | N/A                    | 8.8% = (3,246 / 36,891) * 100 **[0000104169-24-000178_wmt-20241031.htm:3]** **[0000104169-24-000178_wmt-20241031.htm:12]**                                     |
| 2024     | 1,507                        | Operating lease obligations        | N/A                    | 4.1% = (1,507 / 36,891) * 100 **[0000104169-24-000178_wmt-20241031.htm:3]** **[0000104169-24-000178_wmt-20241031.htm:12]**                                     |
| 2024     | 789                          | Finance lease obligations          | N/A                    | 2.1% = (789 / 36,891) * 100 **[0000104169-24-000178_wmt-20241031.htm:3]** **[0000104169-24-000178_wmt-20241031.htm:12]**                                       |
| 2026     | N/A                          | 2.550% Notes                      | 2.550                  | N/A **[0000104169-24-000178_wmt-20241031.htm:0]**                                                                       |
| 2026     | N/A                          | 1.050% Notes                      | 1.050                  | N/A **[0000104169-24-000178_wmt-20241031.htm:0]**                                                                       |
| 2028     | N/A                          | 1.500% Notes                      | 1.500                  | N/A **[0000104169-24-000178_wmt-20241031.htm:0]**                                                                       |
| 2029     | N/A                          | 4.875% Notes                      | 4.875                  | N/A **[0000104169-24-000178_wmt-20241031.htm:0]**                                                                       |
| 2030     | N/A                          | 5.750% Notes                      | 5.750                  | N/A **[0000104169-24-000178_wmt-20241031.htm:0]**                                                                       |
| 2031     | N/A                          | 1.800% Notes                      | 1.800                  | N/A **[0000104169-24-000178_wmt-20241031.htm:0]**                                                                       |
| 2034     | N/A                          | 5.625% Notes                      | 5.625                  | N/A **[0000104169-24-000178_wmt-20241031.htm:0]**                                                                       |
| 2035     | N/A                          | 5.250% Notes                      | 5.250                  | N/A **[0000104169-24-000178_wmt-20241031.htm:0]**                                                                       |
| 2039     | N/A                          | 4.875% Notes                      | 4.875                  | N/A **[0000104169-24-000178_wmt-20241031.htm:0]**                                                                       |

675a4e28e8bc77550f7ff3ae3be77b3819aa49b2e311ced9780ffb3c6ed37a75

1. **Consumer Outlook & Guidance**  
   **Q:** Are you seeing a weaker consumer? How is guidance affected?  
   **A:** Management reports that the consumer remains strong with consistent sales across months, including **July** being slightly higher.  **[WMT_3399104_9]**  They have not seen a step down in consumer behavior and expect this trend to continue into the back half of the year.  **[WMT_3399104_9]**  They remain measured in their outlook due to economic factors but feel well-positioned irrespective of economic conditions.  **[WMT_3399104_9]** **[WMT_3399104_8]** 

2. **eCommerce Profitability Timeline**  
   **Q:** When will U.S. eCommerce turn profitable?  
   **A:** Management indicates progress in core eCommerce profitability, stating it was the **single largest contributor** to operating income improvement.  **[WMT_3399104_9]**  However, they avoid specific timelines and emphasize focusing on the total omni business, including stores and clubs.  **[WMT_3399104_13]** 

3. **EBIT Growth vs Sales Growth**  
   **Q:** Is EBIT growth outpacing sales growth sustainable?  
   **A:** Management is deliberately reinvesting in the business while managing short-term results.  **[WMT_3399104_12]**  They acknowledge a spread between EBIT growth and sales growth but emphasize a focus on long-term momentum rather than short-term metrics.  **[WMT_3399104_12]** 

4. **Gross Margin Outlook**  
   **Q:** How do you view gross margin in the second half?  
   **A:** Gross margin benefited from business mix and improvements in core eCommerce losses.  **[WMT_3399104_17]**  Management is not raising prices but lowering them, aiming to drive **everyday low prices** for customers.  **[WMT_3399104_17]** 

5. **Health & Wellness Momentum**  
   **Q:** Can you discuss health and wellness sales and margins?  
   **A:** Growth in health and wellness is led by **GLP-1 drugs** and supplements.  **[WMT_3399104_11]**  Merchants are managing product mix to maintain margins despite uneven growth.  **[WMT_3399104_11]** 

6. **Membership Growth Impact**  
   **Q:** Is increased membership driving operating income growth?  
   **A:** **All-time high membership growth**, especially at Sam’s Club, is contributing significantly to operating income.  **[WMT_3399104_10]**  **50%** of growth comes from Gen Z and millennials, with strong digital engagement enhancing member spend and renewal rates.  **[WMT_3399104_10]** 

7. **Pricing and Deflation Impact**  
   **Q:** How is deflation affecting pricing and private label?  
   **A:** Management is lowering prices, especially in fresh food and general merchandise.  **[WMT_3399104_16]**  While private brand may continue to grow, they prefer to sell brands and encourage suppliers to invest in pricing.  **[WMT_3399104_16]** 

8. **Automation Progress**  
   **Q:** Where are you on the automation journey?  
   **A:** They are on track with automation plans, expecting about **3,000 stores** to receive deliveries from automated facilities by year-end.  **[WMT_3399104_15]**  Automation improves efficiency and helps associates better serve customers.  **[WMT_3399104_15]** 

9. **Income Cohort Sales Growth**  
   **Q:** Are low-income shoppers contributing to comp growth?  
   **A:** Both low and high-income customers are contributing to growth; value matters to everyone.  **[WMT_3399104_18]**  Low-income shoppers focus on opening price points, but higher-income customers are buying more discretionary goods.  **[WMT_3399104_18]** 

10. **General Merchandise Momentum**  
    **Q:** Will general merchandise momentum continue?  
    **A:** General merchandise saw positive growth for the first time in **11 quarters**.  **[WMT_3399104_9]**  Expansion in Marketplace and improved eCommerce experiences are driving relevance with customers.  **[WMT_3399104_9]** 

11. **Holiday Season Outlook**  
    **Q:** What are your expectations for the holiday season?  
    **A:** Management is optimistic, with **increased buying** and a focus on strong execution.  **[WMT_3399104_19]**  Early back-to-school results are positive, suggesting a good holiday season ahead.  **[WMT_3399104_19]** 

12. **Walmart+ Membership Growth**  
    **Q:** What's driving Walmart+ membership and retention?  
    **A:** The core offer of delivery from stores and fulfillment centers is attracting members.  **[WMT_3399104_14]**  Delivering a **perfect order** increases likelihood of renewal; growth is seen across all income brackets.  **[WMT_3399104_14]** 

b94b75d44b7eeae28176c39c4f23ee9c05dff59b3eed03066f463cd751cf4fa9

- **Management is cautious about the economic and geopolitical environment**, noting that "given the state of the economy, the election, set of affairs globally, there's reason to be appropriately measured in our outlook for the back half of the year," suggesting potential headwinds.  **[WMT_3399104_8]**
- **Ongoing investments may pressure operating margins**. The company is being "thoughtful and deliberate about reinvestment," including price reductions and associate wages. Management acknowledges that "our operating income percentage came down for a period of years as we made investments," indicating potential margin pressures ahead.  **[WMT_3399104_12]**
- **E-commerce profitability remains uncertain**, with management emphasizing that they are "getting into that zone where it's going to cross the threshold" but not providing a definitive time frame. This ongoing unprofitability in e-commerce could weigh on overall profitability.  **[WMT_3399104_13]**

07b6ecd4ced707946fb376bc13289aea52923b6e419ce51258333d656e9645fb

- **Merchandise mix remains a headwind to margins**, as customers are spending more on non-discretionary categories (food and consumables) and less on higher-margin general merchandise.  **[WMT_3389636_6]**
- Despite strong Q1 results, **the company is cautious about raising full-year guidance**, citing **uncertainty in the macroeconomic environment and consumer economic conditions**, indicating potential challenges ahead.  **[WMT_3389636_6]**
- **Closure of all 51 U.S. health care clinics due to inability to achieve acceptable profitability** and **elimination of some home office roles**, which may suggest difficulties in diversifying revenue streams and potential cost-cutting measures.  **[WMT_3389636_2]**

66f9cace0e822688779cb027b35d756556c3a57480f0fe07dd362c829349f988

1d52b7fa86c49e9139c94549da85acb589fbc322d5baff6933643d433999c29a

- **Walmart is growing operating income faster than sales, with profits up approximately 10% on sales growth of about 5%, exceeding their financial targets and demonstrating strong execution.**  **[WMT_3409376_9]**
- **Significant growth in membership income, with Sam's Club reporting a 15.1% increase and Sam's Club China growing over 30%, indicating strong member engagement and contributing to higher margins.**  **[WMT_3409376_19]**
- **Rapid expansion of higher-margin businesses: advertising revenue up 50%, marketplace sales up 42%, and membership income up 22%, reshaping Walmart's profit composition and driving operating income growth.**  **[WMT_3409376_14]** **[WMT_3409376_11]**

86bf6b5de409497b8f6aac12e92e18c577f0e476a4322f881379adefb177db90

- **Walmart's eCommerce growth remains robust, with U.S. eCommerce sales up **22%**, driven by strong performance in the Marketplace and expansion in categories like apparel and fashion online.**  **[WMT_3389636_13]**
- **International operations are delivering exceptional results, with top-line growth of **10.7%** and bottom-line growth of **27%**. Initiatives like Flipkart in India and Sam's Club in China are contributing significantly, with Flipkart's Myntra becoming EBITDA positive and Sam's Club China achieving a 50-50 split between offline and online sales.**  **[WMT_3389636_12]**
- **Walmart is enhancing customer convenience and experience through technology investments, such as AI-driven search improvements and AI-powered exit technology in Sam's Club, leading to increased membership engagement and a higher proportion of Plus memberships at **54%** of the member base, up **330 basis points** year-over-year.**  **[WMT_3389636_13]** **[WMT_3389636_11]**

9ad78a86019b54ef66fbd77cc3d3f41c9d8d4b2c3c8c3a541665c140641add24

1. **Alternative Revenue Streams Contribution**  
   **Q:** How much did alternative revenue streams contribute to EBIT growth?  
   **A:** Membership fees and advertising income contributed to a little more than **half of our operating income improvement** and nearly **one-third of overall operating income**.  **[WMT_3409376_14]**  These are important growth drivers, but they rely on getting the basics right in core retail.  **[WMT_3409376_14]** 

2. **Operating Income Guidance and E-commerce Profitability**  
   **Q:** Did changes in Q4 operating income guide affect outlook for e-commerce profitability?  
   **A:** There's a modest improvement in Q4 performance with the business performing consistently.  **[WMT_3409376_11]**  Shrink has performed better than expected, aiding gross margins.  **[WMT_3409376_11]**  We are confident we'll make money in e-commerce but aren't racing to it; we're focused on long-term growth and meeting customer needs.  **[WMT_3409376_11]** 

3. **E-commerce Growth and Profitability Outlook**  
   **Q:** What's the sustainable e-commerce growth and profitability outlook?  
   **A:** We're investing to enhance customer experience and drive growth, with e-commerce now representing **18% of our business**, up **300 basis points** from last year.  **[WMT_3409376_13]**  We see significant opportunity due to our relatively low e-commerce market share.  **[WMT_3409376_13]**  While confident in e-commerce profitability, we're prioritizing customer service over rushing to profit.  **[WMT_3409376_13]** 

4. **General Merchandise Impact on Gross Margin**  
   **Q:** When will general merchandise mix balance, and how will it impact gross margins?  
   **A:** General merchandise has improved, with positive comps due to unit growth despite **low to mid-single-digit deflation**.  **[WMT_3409376_8]**  We're excited about the season and see bright spots in home, toys, and hardlines.  **[WMT_3409376_8]**  Growth in general merchandise can positively impact gross margin expansion.  **[WMT_3409376_8]** 

5. **Share Gains with Upper-Income Consumers**  
   **Q:** How is Walmart gaining share with upper-income consumers?  
   **A:** By offering both value and convenience, we're attracting higher-income customers.  **[WMT_3409376_12]**  Growth in e-commerce, especially marketplace expansion and assortment in fashion and apparel, appeals to them.  **[WMT_3409376_12]**  Categories like gluten-free, grass-fed beef, and organic produce show higher share in pickup and delivery.  **[WMT_3409376_12]** 

6. **Operating Expenses and SG&A Potential Improvement**  
   **Q:** Can OpEx get closer to 19% from 21.2%, considering e-commerce losses?  
   **A:** Higher SG&A is driven by investments in marketing and incentive pay for frontline associates.  **[WMT_3409376_17]**  The shift toward digital channels, which have higher SG&A, pressures expenses.  **[WMT_3409376_17]**  While focused on efficiencies, growing digital will continue to impact SG&A.  **[WMT_3409376_17]** 

7. **Acceleration in Average Ticket**  
   **Q:** What drove the acceleration in average ticket in the U.S.?  
   **A:** We saw the highest growth in units in food in several years.  **[WMT_3409376_18]**  Positive comps in general merchandise despite deflation, and growth in deliveries under three hours contributed.  **[WMT_3409376_18]**  One-time events like hurricanes also had an impact.  **[WMT_3409376_18]** 

8. **Competition Response to Share Gains**  
   **Q:** What are observations on competitors' response to Walmart's share gains?  
   **A:** The competitive landscape is evolving and varies by market.  **[WMT_3409376_16]**  In the U.S., we face fierce competition from various directions.  **[WMT_3409376_16]**  We focus on customers and adapt by learning and applying insights from competitors.  **[WMT_3409376_16]** 

9. **Membership Growth and Impact**  
   **Q:** What's driving membership growth, and how does it impact behavior?  
   **A:** Walmart+ membership is up **double digits**, helping customers save on delivery costs.  **[WMT_3409376_19]**  We're committed to delivering orders on time and complete, enhancing customer experience.  **[WMT_3409376_19]**  Membership enables us to offer additional services and deepen customer relationships.  **[WMT_3409376_19]** 

02855850015d886844f0e82c05ca61cd771de08228cf820d61c3e78cf638f138

- **Walmart is experiencing all-time high membership growth and Plus member penetration**, particularly among Gen Z and millennials, driving operating income growth and indicating strong future potential.  **[WMT_3399104_6]**
- **The company is making significant progress in automation**, enhancing supply chain efficiency and store operations, which is expected to improve productivity and support long-term growth.  **[WMT_3399104_10]**
- **Walmart anticipates a strong holiday season**, with positive early back-to-school sales suggesting strong performance for Halloween and Christmas, and is proactively increasing inventory to meet demand.  **[WMT_3399104_5]**

d21cc817d3bbc89ef7f8fe8a0c748d94f90d9348f7218c84c21f36f0cd2ed6d7

1. **E-commerce Growth and Margin Expansion**  
   **Q:** How is e-commerce driving margin improvement?  
   **A:** E-commerce incremental margins reached **12.5%**, about three times our overall margin, reflecting strong profitable growth in online sales and new businesses like advertising and membership.  **[WMT_3389636_10]** 

2. **International Performance and Flipkart IPO**  
   **Q:** What's driving strong international margins and Flipkart's status?  
   **A:** International operating income grew **27%**, aided by ecosystem growth in areas like digital connectivity in Mexico and sustainable e-commerce in China. Flipkart's Myntra is EBITDA positive for two quarters, and we're exploring the right time to IPO Flipkart.  **[WMT_3389636_12]** 

3. **Gross Margin Outlook Amid Deflation**  
   **Q:** How are gross margins improving despite deflation and rollbacks?  
   **A:** Gross margin benefits from lower markdowns due to better inventory, and growth in higher-margin businesses like advertising and Marketplace. Merchandise margins remain focused on value, even as gross margins evolve.  **[WMT_3389636_10]** 

4. **Impact of Marketplace on General Merchandise**  
   **Q:** Is Marketplace growth affecting general merchandise sales?  
   **A:** Marketplace growth in categories like pets and beauty exceeds **30%**, attracting customers to new areas. While general merchandise comps are roughly flat, the expanded assortment increases overall GMV without cannibalizing core sales.  **[WMT_3389636_15]** 

5. **Higher-Income Consumer Engagement**  
   **Q:** How are you attracting higher-income consumers?  
   **A:** By enhancing convenience through delivery and online offerings, we're seeing growth with higher-income households, which comprise about one-third of our customer base. Improvements in fresh food and delivery services are resonating across income groups.  **[WMT_3389636_16]** 

6. **Operating Expenses and Investment Outlook**  
   **Q:** Any updates on operating expenses and investments for Q2?  
   **A:** While Q1 outperformed, some benefits won't repeat in Q2, such as favorable seasonal events. Planned technology investments and higher depreciation will occur, but we still see opportunity to outperform guidance.  **[WMT_3389636_14]** 

7. **Consumer Spending Trends and Mix**  
   **Q:** What are the trends in general merchandise spending?  
   **A:** Consumer behavior remains consistent, with minimal mix shifts. March was strong due to favorable weather and Easter timing, and similar trends are continuing into May.  **[WMT_3389636_17]** 

8. **Walmart+ Membership Growth**  
   **Q:** How is Walmart+ differentiating in a crowded membership market?  
   **A:** Walmart+ is growing double digits, offering unlimited deliveries and saving customers time and money. Improving perfect order rates enhances the value proposition, and we're pleased with the progress.  **[WMT_3389636_18]** 

9. **General Merchandise Opportunities and AI**  
   **Q:** What are the opportunities in general merchandise and AI's role?  
   **A:** We're excited about categories like apparel and hardlines, with e-commerce growth at **22%**. AI is enhancing our search capabilities, creating a more solution-oriented experience for customers.  **[WMT_3389636_13]** 

10. **Inflation Expectations Going Forward**  
    **Q:** Do you expect inflation levels to stay low?  
    **A:** We expect inflation to remain around current levels, with general merchandise being deflationary, and consumables and food slightly above flat to up **1%**.  **[WMT_3389636_19]** 

11. **Factors Driving Business Performance**  
    **Q:** How do internal strategies vs. external factors drive performance?  
    **A:** Our results reflect strong execution and focus on value and convenience. We prioritize internal metrics like perfect order scores, which improved nearly **900 basis points**, over external factors.  **[WMT_3389636_11]** 

e255c02bcfb77231bfd9d941f9d2e4405cd8a55e536bb64015c63dbd8a9a232f

- **Margin pressure from GLP-1 drug sales negatively impacting gross profit mix.** GLP-1 sales contributed about 1 point to the segment comp but continue to create mix pressures in gross profit.  **[WMT_3409376_1]** **[WMT_3409376_4]**
- **Unanticipated expenses from hurricanes and port strikes negatively affected operating income growth.** The quarter included two large hurricanes and a U.S. port strike, which lifted sales growth by a small amount but negatively affected operating income growth by a larger amount.  **[WMT_3409376_1]** **[WMT_3409376_4]**
- **General merchandise expected to underperform health and wellness and grocery, affecting profit margins until normal purchasing cycles return.** The company expects general merchandise to improve but continue to underperform health and wellness and grocery until normal purchasing cycles return across general merchandise categories.  **[WMT_3409376_6]**

2b2ee1e1f09cb91a595b13d7eb66ccac0ba5dcd042fe31ab87e8b52326ea7bf8

- **Walmart is successfully growing operating income faster than sales**, driven by higher-margin initiatives like advertising, Marketplace, and membership programs, which are expected to contribute **20% of annual operating income in FY '25**.  **[WMT_3374030_8]**
- **Significant improvements in eCommerce profitability**, with cost of fulfillment reducing by **20%** over the last year and eCommerce losses lowered by more than **40%** versus last year's level, moving towards breakeven.  **[WMT_3374030_4]** **[WMT_3374030_11]**
- **Strong market share gains across virtually every category**, particularly among higher-income households earning over **$100,000**, indicating that Walmart's value proposition is resonating with a broad customer base.  **[WMT_3374030_18]**

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Walmart Inc (WMT)

Financials