- The company reiterates its FY19 total sales growth expectations and updates FY19 GAAP and adjusted EPS to include the expected 25 cents per share Flipkart dilution.
- FY19 GAAP EPS guidance is now $2.65 to $2.801, and FY19 adjusted EPS guidance is now $4.65 to $4.801. This compares to previous guidance of GAAP EPS of $2.90 to $3.05 and adjusted EPS of $4.90 to $5.05.
- Walmart expects total FY20 sales growth to be 3 percent or greater, negatively affected by about 100 basis points due to the deconsolidation of the Brazil operations and planned reduction in tobacco sales at Sam’s Club.
- Walmart U.S. comp sales growth is expected to be in a range of 2.5 percent to 3 percent and eCommerce net sales growth is expected to be around 35 percent for FY20.
- FY20 operating income is expected to decline by a low single digit percentage range, but is expected to increase by a low single digit percentage range when excluding Flipkart in both FY19 and FY20.
- FY20 EPS is expected to decline by a low single digit percentage range versus FY19 adjusted EPS2. Excluding Flipkart, EPS is expected to increase by a low to mid-single digit percentage range versus FY19 adjusted EPS.
Walmart will host its annual meeting for the investment community where its leadership team will discuss how the company is shaping its future, moving with speed and innovating for tomorrow to win for customers and shareholders. The company is also sharing select guidance metrics for the next fiscal year.
“We’re adapting and transforming with speed to better serve our existing customers and reach new ones,” said Walmart President and CEO, Doug McMillon. “We’re operating with discipline, balancing our short and long-term opportunities. While we’re excited about what we’ve done so far, we aren’t satisfied. As we execute today and build for tomorrow, our associates and unique omni-channel assets position us for success.”
McMillon will discuss:
- Progress over the past year at Walmart U.S., including strong traffic and comp sales, online grocery pickup and delivery, and associate empowerment and training.
- Walmart’s focus on price leadership, broad assortment and efforts to save customers more time by making shopping easier, faster and more enjoyable.
- Momentum in areas such as eCommerce, logistics and partnerships.
- Distinctive assets, key investments and acquisitions, including Flipkart in India.
- Innovations that are enabling Walmart to serve local communities and customers around the world, such as last mile delivery, reducing supplier emissions, pioneering blockchain for food safety at scale, and leveraging machine learning across the enterprise.
- How the company is utilizing this period of transformation in retail to invest thoughtfully, plant seeds for the future and generate solid financial results.