Walmart Reaffirms Strategy Fit for Today and the Future

Company shares its unique position to serve customers and members when they need it most and that U.S. eCommerce business is on track to be profitable this year

Today, Walmart hosted its investment meeting where the company’s leadership team highlighted the consistency and strength of the company’s business operations and strategy. Walmart showcased its resiliency and its ability to innovate, change, and continue to deliver growth and shareholder value.

Doug McMillon, president and CEO, Walmart Inc., expressed confidence in Walmart's ability to navigate against a more fluid backdrop, given improved business flexibility and profit diversification.

He also emphasized the company's resilience, having successfully managed through periods of uncertainty over the company’s history. McMillon also highlighted Walmart's ongoing transformation, driven by investments in customer and member experiences, technology and a flexible business model designed to adapt to changing market conditions.

“While in the short term we are not immune to some of the effects businesses face in today’s operating environment, we are uniquely positioned to play offense,” McMillon said. “Changes we’re making to our business add even more strength and flexibility for our future. We’re an ‘and’ company. We’re people and tech; stores and eCommerce; innovation and execution.”

John David Rainey, executive vice president and chief financial officer, Walmart Inc., provided insights into the company's financial framework and strategic investments. He reiterated Walmart's commitment to growing operating profits faster than sales, driven by scaling digital and related businesses, including membership, advertising, data and Fintech.

• Value Creation: Walmart's strategic investments in associate wages, technology, and customer experience have positioned the company for sustained growth.
• Omnichannel Model: The integration of physical and digital capabilities has resulted in share gains, higher returns, and a durable competitive advantage.
• Profit Growth: Walmart's newer digital businesses, such as advertising and data, are significantly boosting profit growth. Additionally, the company also announced that its U.S. eCommerce business is on track to be profitable this year.

Rainey also confirmed the company’s priorities in the current operating environment. These include keeping prices as low as we can, leveraging data and automation to further improve the flow of inventory, and managing costs.

The President and CEO for each of Walmart Inc.’s business units – Walmart International, Sam’s Club U.S. and Walmart U.S. – also spoke. Key highlights from their presentations are below.

President and CEO, Walmart International, Kath McLay, shared the segment’s growth story, which is accretive to enterprise growth in sales and profits. Walmart International is on track to meet its goal set in 2023 of reaching $200 billion in GMV and doubling profits and digital mix by 2028 having grown net sales by 9.1% and operating income 17% in constant currency ¹over the past fiscal year.

• Market Leadership: Walmart International is in the right markets to win with a growth focus on Mexico, China, and India and is committed to being the leading omnichannel retailer in every market it operates, leveraging its store network and eCommerce capabilities. In the past two years, Walmart International eCommerce sales grew 45%.
• Innovation and Learning: The company’s local businesses are continuously innovating and sharing best practices, enhancing its ability to serve customers better across the globe by leaning on global strategies and platforms. Rapid commerce capabilities are being deployed across growth markets, reaching more customers with more items, even faster, some within minutes.
• Community Impact: Walmart International has more than 500,000 associates and serves more than 95 million customers and members each week. The business shares Walmart’s broader purpose of helping people save money and live better - it’s deeply felt by customers worldwide, with initiatives that support local communities and create opportunities.

President and CEO, Sam’s Club U.S., Chris Nicholas, shared ambitions to double membership over the next eight-10 years, driven by omnichannel advantages, and as a result, more than double sales and profit. Sam’s Club U.S. is focused on strong membership for growth, redefining the future of the club model and setting a new standard for retail.

• Membership Trends: Membership is at an all-time high, with membership income up 22% over the last two years. Renewal rates are strong with tenured members above 90%. Membership health metrics are strong - more than half of members are Plus members, and GenZ and Millennial members make up more than half of new members.
• New Clubs: Sam’s Club is accelerating its new club growth plans as part of the 30 new clubs announced in January 2023, and expects to build a pipeline to 15 new clubs every year after that for the foreseeable future, expanding its physical reach.
• Full Fleet Revitalization: Sam’s Club ‘s Grapevine, TX club experience with ~ 100% scan & go penetration is the model of the future. Over the planning horizon, the company will remodel all 600 clubs as a strategic growth investment, confident in the capital returns the company will see in sales and membership income.
• Digital Engagement: Around 40% of total transactions are digital today including scan & go and members shopping online. The business will leverage enterprise platforms including fulfillment networks to allow Sam’s Club to have a national eCommerce presence and grow membership not tethered to a physical club.

President and CEO, Walmart U.S., John Furner, described the opportunity Walmart has to be America’s favorite retailer.

• Growth and Potential: There is still substantial upside for further expansion within Walmart U.S.’ significant sales growth, which added $121 billion over the past five years. The goal is to become America's favorite place to shop by focusing on a clear customer value proposition - price, assortment, experience, and trust.
• Omnichannel Strategy: Walmart is committed to serving customers through an omnichannel approach, allowing them to shop in-store, online, or through pickup and delivery. The company is well positioned to deliver to 95% of U.S. households in under three hours later this year.
• Business Mix Accelerators: Walmart U.S. is also investing in key business accelerators that not only fuel growth, but bolster profitability and drive incremental margins - Walmart+, Walmart Connect, Data Ventures, and Fintech.
• Supply Chain Transformation: Walmart's supply chain is rapidly transforming to leverage independent assets (stores, fulfillment and distribution centers, pickup, and delivery) into one omnichannel supply chain network using data, intelligent software, and automation. This transformation is improving inventory management, enabling faster and more precise fulfillment, and reducing our costs to serve. Today, more than 50% of our eCommerce fulfillment center volume flows through our next-generation fulfillment centers and more than half of our stores are receiving freight from automation. As a result, we're processing more units through our distribution centers and fulfillment centers at lower costs.

A recap of the meeting can be found here.

About Walmart

Walmart Inc. (NYSE: WMT) is a people-led, tech-powered omnichannel retailer helping people save money and live better - anytime and anywhere - in stores, online, and through their mobile devices. Each week, approximately 270 million customers and members visit more than 10,750 stores and numerous eCommerce websites in 19 countries. With fiscal year 2025 revenue of $681 billion, Walmart employs approximately 2.1 million associates worldwide. Walmart continues to be a leader in sustainability, corporate philanthropy, and employment opportunity. Additional information about Walmart can be found by visiting corporate.walmart.com, on Facebook at facebook.com/walmart, on X (formerly known as Twitter) at twitter.com/walmart, and on LinkedIn at linkedin.com/company/walmart.

Forward Looking Statements

This release and related management presentation contains statements that may be "forward-looking statements" as defined in, and are intended to enjoy the protection of the safe harbor for forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Assumptions on which such forward-looking statements are based are also forward-looking statements. Statements of our guidance, projections, estimates, expectations, plans, and objectives for the first quarter and remainder of fiscal 2026 in the related management presentation are forward-looking statements. Assumptions on which such forward-looking statements are based are also forward-looking statements. 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Our actual results may differ materially from those expressed in or implied by any of these forward-looking statements as a result of changes in circumstances, assumptions not being realized or other risks, uncertainties and factors including: the impact of pandemics on our business and the global economy; economic, capital markets and business conditions; trends and events around the world and in the markets in which we operate; currency exchange rate fluctuations, changes in market interest rates and market levels of wages; changes in the size of various markets, including eCommerce markets; unemployment levels; inflation or deflation, generally and in particular product categories; consumer confidence, disposable income, credit availability, spending levels, shopping patterns, debt levels and demand for certain merchandise; the effectiveness of the implementation and operation of our strategies, plans, programs and initiatives; unexpected changes in our objectives and plans; the impact of acquisitions, investments, divestitures, store or club closures, and other strategic decisions; our ability to successfully integrate acquired businesses, including within the eCommerce space; changes in the trading prices of certain equity investments we hold; initiatives of competitors, competitors' entry into and expansion in our markets, and competitive pressures; customer traffic and average ticket in our stores and clubs and on our eCommerce websites; the mix of merchandise we sell, the cost of goods we sell and the shrinkage we experience; trends in consumer shopping habits around the world and in the markets in which we operate; our gross profit margins; the financial performance of Walmart and each of its segments, including the amounts of our cash flow during various periods; transportation, energy and utility costs; commodity prices and the price of gasoline and diesel fuel; supply chain disruptions and disruptions in seasonal buying patterns; the availability of goods from suppliers and the cost of goods acquired from suppliers; consumer acceptance of and response to our stores, clubs, eCommerce platforms, programs, merchandise offerings and delivery methods; cyber security events affecting us and related costs and impact to the business; developments in, outcomes of, and costs incurred in legal or regulatory proceedings to which we are a party or are subject, and the liabilities, obligations and expenses, if any, that we may incur in connection therewith; casualty and accident-related costs and insurance costs; consumer enrollment in health and drug insurance programs and such programs’ reimbursement rates and drug formularies; our effective tax rate and the factors affecting our effective tax rate, including assessments of certain tax contingencies, valuation allowances, changes in law, administrative audit outcomes, impact of discrete items and the mix of earnings between the U.S. and Walmart's international operations; changes in existing tax, labor and other laws and regulations and changes in tax rates including the enactment of laws and the adoption and interpretation of administrative rules and regulations; the imposition of new taxes on imports, new tariffs and changes in existing tariff rates; the imposition of new trade restrictions and changes in existing trade restrictions; adoption or creation of new, and modification of existing, governmental policies, programs, initiatives and actions in the markets in which Walmart operates and elsewhere and actions with respect to such policies, programs and initiatives; changes in accounting estimates or judgments; the level of public assistance payments; natural disasters, changes in climate, geopolitical events and catastrophic events; and changes in generally accepted accounting principles in the United States.

Our most recent annual report on Form 10-K filed with the SEC discusses other risks and factors that could cause actual results to differ materially from those expressed or implied by any forward-looking statement in this release or the management presentation. We urge you to consider all of the risks, uncertainties and factors identified above or discussed in such reports carefully in evaluating the forward-looking statements in this release. Walmart cannot assure you that the results reflected in or implied by any forward-looking statement will be realized or, even if substantially realized, that those results will have the forecasted or expected consequences and effects for or on our operations or financial performance. The forward-looking statements made in the release are as of the date hereof. Walmart undertakes no obligation to update these forward-looking statements to reflect subsequent events or circumstances.

This release and related management presentation reference certain non-GAAP measures as defined under SEC rules, including net sales and operating income on a constant currency basis, adjusted operating income, free cash flow, and return on investment. Information about the non-GAAP measures as required by Regulation G and Item 10(e) of Regulation S-K regarding non-GAAP measures for the applicable periods can be found in our previously filed reports on Form 10-K and earnings presentations furnished via Form 8-K with the SEC, which are available at stock.walmart.com.

¹ See non-GAAP reconciliations for net sales and operating income in constant currency in prior fiscal years’ earnings presentations, which are available at stock.walmart.com

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