Delaware
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001-06991
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71-0415188
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(State or Other Jurisdiction of Incorporation)
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(Commission File Number)
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(IRS Employer Identification No.)
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Exhibit No.
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Description
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PRESS RELEASE
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WAL-MART STORES, INC.
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By:
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/s/ Gordon Y. Allison
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Gordon Y. Allison
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Vice President and General Counsel, Corporate
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The company reiterates fiscal year 2018 GAAP EPS
1
guidance of $4.18 to $4.28, or adjusted EPS
1,2
guidance of $4.30 to $4.40.
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For fiscal year 2019, the company expects EPS
3
to increase approximately 5 percent compared with fiscal year 2018 adjusted EPS
2
.
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The company announces a new $20 billion share repurchase program to replace its existing authorization and expects to utilize the new authorization over an approximate two year period.
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Consolidated net sales are expected to grow at or above 3 percent, driven by comp-sales and eCommerce growth, assuming currency exchange rates remain at current levels
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Anticipates sales growth at Walmart U.S. eCommerce to be about 40 percent
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Expects to add 1,000 online grocery locations in Walmart U.S.
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Expects to leverage expenses
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Expects its effective tax rate to be approximately 32.5
percent
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Walmart U.S. will continue to prioritize store remodels and digital experiences over new stores.
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eCommerce investments include enhanced supply chain capabilities.
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In addition to new stores, Walmart International will invest more in fulfillment capabilities
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Walmart U.S. expects to open fewer than 15 Supercenters and fewer than 10 Neighborhood Markets in fiscal year 2019.
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Walmart International expects to open approximately 255 new stores with a focus in key markets such as Mexico and China.
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Adjusted earnings per share and earnings per share for fiscal 2018;
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Earnings per share for fiscal 2019;
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Continued momentum in our business and continued innovation in our stores, clubs and through eCommerce;
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Completion of our new $20 billion share buyback authorization and the timing of such completion;
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Our flexibility to invest in and grow our business while providing meaningful returns to shareholders;
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Consolidated net sales and comp sales growth for fiscal 2019;
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Sales growth at Walmart US eCommerce for fiscal 2019;
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The number of online grocery locations to be added in fiscal 2019;
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The levering of expenses in fiscal 2019;
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Our effective tax rate for fiscal 2019;
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Capital expenditures, and segment level capital allocations, for fiscal 2018 and fiscal 2019;
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The prioritization by Walmart U.S. of store remodels and digital experiences over new builds;
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Our eCommerce investments in supply chain capabilities and merchant tools;
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Walmart International’s opening more new stores in markets such as China and Mexico; and
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Total new units for Walmart U.S. by format, and for Walmart International and Sams Club U.S., for fiscal 2018 and fiscal 2019.
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economic, geo-political, capital markets and business conditions, trends and events around the world and in the markets in which Walmart operates;
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currency exchange rate fluctuations;
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changes in market rates of interest;
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changes in market levels of wages;
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changes in the size of various markets, including eCommerce markets;
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unemployment levels;
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inflation or deflation, generally and in certain product categories;
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transportation, energy and utility costs;
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commodity prices, including the prices of oil and natural gas;
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consumer confidence, disposable income, credit availability, spending levels, shopping patterns, debt levels, and demand for certain merchandise;
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trends in consumer shopping habits around the world and in the markets in which Walmart operates;
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consumer enrollment in health and drug insurance programs and such programs' reimbursement rates and drug formularies;
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initiatives of competitors, competitors' entry into and expansion in Walmart’s markets, and competitive pressures;
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changes in the trading prices of certain equity investments held by Walmart.
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the amount of Walmart’s net sales and operating expenses denominated in U.S. dollar and various foreign currencies;
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the financial performance of Walmart and each of its segments, including the amounts of Walmart’s cash flow during various periods;
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Walmart’s need to repatriate earnings held outside of the U.S. and changes in U.S. tax regulations;
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customer traffic and average ticket in Walmart’s stores and clubs and on its eCommerce websites;
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the mix of merchandise Walmart sells;
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the availability of goods from suppliers and the cost of goods acquired from suppliers;
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the effectiveness of the implementation and operation of Walmart’s strategies, plans, programs and initiatives;
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the impact of acquisitions and divestitures, store and club closures and other changes in our business portfolio;
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Walmart’s ability to successfully integrate acquired businesses, including within the eCommerce space;
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the amount of shrinkage Walmart experiences;
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consumer acceptance of and response to Walmart’s stores and clubs, eCommerce websites, mobile apps, programs and merchandise offerings, including the Walmart U.S. segment's Grocery Pickup program;
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new methods for delivery of purchased merchandise to customers;
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Walmart’s gross profit margins, including pharmacy margins and margins of other product categories;
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the selling prices of gasoline and diesel fuel;
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disruption of seasonal buying patterns in Walmart’s markets;
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Walmart’s expenditures for FCPA and other compliance-related matters;
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disruptions in Walmart’s supply chain;
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cybersecurity events affecting Walmart and related costs and impact of any disruption in business;
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Walmart’s labor costs, including healthcare and other benefit costs;
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Walmart’s casualty and accident-related costs and insurance costs;
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the size of and turnover in Walmart’s workforce and the number of associates at various pay levels within that workforce;
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unexpected changes in Walmart’s objectives and plans;
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the availability of necessary personnel to staff Walmart’s stores, clubs and other facilities;
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the availability of skilled labor in areas in which new units are to be constructed or existing units are to be relocated, expanded or remodeled;
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delays in the opening of new, expanded or relocated units;
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developments in, and the outcome of, legal and regulatory proceedings and investigations to which Walmart is a party or is subject, and the liabilities, obligations and expenses, if any, that Walmart may incur in connection therewith;
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changes in the credit ratings assigned to Walmart’s commercial paper and debt securities by credit rating agencies;
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Walmart’s effective tax rate; and
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unanticipated changes in accounting judgments and estimates;
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changes in existing tax, labor and other laws and changes in tax rates, including the enactment of laws and the adoption and interpretation of administrative rules and regulations;
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governmental policies, programs, initiatives and actions in the markets in which Walmart operates and elsewhere;
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the possibility of imposition of new taxes on imports and new tariffs and trade restrictions and changes in existing tariff rates and trade restrictions;
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changes in currency control laws;
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changes in the level of public assistance payments;
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the timing of federal income tax refunds;
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natural disasters, public health emergencies, civil disturbances, and terrorist attacks; and
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changes in generally accepted accounting principles in the United States.
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Fiscal 2018
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Diluted net income per share:
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Forecasted EPS
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$4.18 - $4.28
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Adjustments:
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Pre-Tax Impact
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Tax Impact
1
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NCI Impact
2
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Net Impact
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Loss on Early Extinguishment of Debt
3
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$0.26
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-$0.09
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$—
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$0.17
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Gain on Sale of Suburbia
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-0.13
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0.04
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0.04
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-0.05
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Net adjustments
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$0.12
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Adjusted EPS Guidance
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$4.30 - $4.40
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