WMT - Earnings call transcript Q3 2018

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Operator

Greetings and welcome to Walmart's Fiscal Year 2018 Third Quarter Earnings Release Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation.

As a reminder, this conference is being recorded. I would now like to turn the conference over to Steve Schmitt with Investor Relations. sir. ahead, go Please

Steve Schmitt

Brigance, morning, be materials discuss welcome is third joined going Hopefully, Brunner, and Good from hit Miguel relations IR to issued the Steve Walmart's this call I'm team. Michael Kary by, to quarter seen today Smith, everyone, Rob. and to Garcia our and you've investor for Schmitt, Joey we Thanks, earnings. I'm This Actual forward-looking morning. events minute, couple on and in then full Q&A. statement our of There these the open and differ Safe a which will on call, accompanying the from a earnings call statements future today's Please are results key we'll to review materials. statements. Harbor materially points subject could uncertainties.

few me the strong about in really a let quarter. had talk quarter. a highlights We So

broad-based sales net billion. $X. We basis, a of were delivered up On adjusted have currency $X.X an EPS of increase We constant consolidated growth. X.X%,

a notice share. You was our GAAP EPS $X.XX

EPS certain that debt tender So the FCPA We of the FCPA a completed adjusted matter. I'll of are recently resolution international three We one of of We three made on possible release, the GAAP exit accrual offer. an hit we properties the in in them. detailed for regarding our made items markets.

items, $X. So our was these adjusted EPS excluding

XX was to good have XX comp with X.X%, traffic from growth positive Walmart momentum about recent up the sales a comp We in We comp sales business. growth impact the U.S. hurricanes. X.X%. saw to across point

International a sales positive XX with traffic led benefit eCommerce markets quarter sales. reporting the Sam's X.X% hurricanes. XX by another solid Our sales also grew comp XX%. delivered of Walmart had grew comp from and U.S.

comp been the $X.XX adjusted Walmart $X.XX. disclosed as expecting of EPS our point Fourth prior which would of from U.S. is year FCPA now X% full a sales for leveraged has to on X.X% increase to increase of the in between today, are charge difficult expenses guidance to we quarter, and $X.XX, for compares. $X.XX emphasis We're we which expected quarter the us. an more Excluding a company have accrual

reminders. release on February And be dates website. everyone next earnings Just know year's XX, posted our We'll fourth release earnings that couple let to to will a of like our XXXX. quarter

So happy And for mark take please your that. this at we'd calendars questions. point, be your to

Operator

a Thank question-and-answer now session. you. conducting you. be Thank We'll

question first the question. from of with Please comes Lasser UBS. Our line proceed with Michael your

Michael Louis Lasser

hurricane-related lot price a gross to you last a the for presumably Thanks on morning. if trick We U.S. several have down in for margin back Good out question. impact, noticeable the your even you Those my mix and been quarters. the cited drags saw gross eComm. margin shift the and the taking investments

So take step down a why did it this quarter? noticeable

Steve Schmitt

Michael. Thanks,

then on gross maybe a me two U.S. about margin things; Let consolidated talk basis. on basis, and a

and the hurricane-related we as U.S. had. attention the a we mix eCommerce, have out and operating expenses basis so hit And certain on which impairments, to impacts. attention that items called things like your also some we'd pay accrual, to, you margin some that such I'd to like hurricane point and international as to just of FCPA in in on profit markets, basis, we investments several items, the price basis, you So consolidated points. keep the a consolidated effects gross rate on mentioned, declined mind you of of XX

keep operating profit just mind quarter. in at looking the when overall you're in performance So these

of impacted of effects about of margin U.S. you eCommerce a mentioned, that. XX specifically, profit Walmart as investments, points basis the the For gross the declined hurricane third specifically, mix gross estimate And well. Price quarter. we in impacted as profit decline

ways ways we to for the all We're and operating that margin, us. continue price. with our more to work beginning into not the look and for I'm and really details turn we'll It's work to for shareholders. discipline, our manage in getting continue productivity specifically, So invest customers our to

profit gross time-to-time, need That's see from could you expenses. margin plan. and more pressure So our we disciplined to with get

Michael Louis Lasser

Steve, about online than customers question recent behind Walmart times, is, potential And describe higher risk and thought my across prices charging talk been there's pricing channels? potentially you the having from that, the in in-store. follow-up experience would process that Can segmented

Steve Schmitt

Sure.

cheaper time-to-time. business, you So both The if and DNA, our you'll products online. in-store so everyday are we're in about is, our think bottled low water, stores, about think see price items differences about just and prices, from some to certainly sell fact like offering some

Michael Louis Lasser

very much. you Thank

Steve Schmitt

Thank you.

Operator

of line from Company. your the and Please Cowen question proceed next with The Oliver Chen with is question.

Oliver Chen

quarter. Hi. Thanks, Nice Steve.

Thank is technology, just just Our Lord you. lot then I'd Jet to technology that with how thinking the your you're Walmart? cart smart a where thoughts and some and And of secondly, question be the relation leveraging deal, would helpful? & about are rationale love the in there on strategic Taylor you about of

Steve Schmitt

Thanks, Oliver.

that question time. but technology. continue to more need to something we to it So really thoughtful that putting nothing at cart We on we smart potentially at. the add Walmart.com, around It's about be as first about look think this

know brands and the has Walmart.com great relationships launch the Lord terms relationship, & relationship, will in a with look be We're our customers to in it's Taylor the on unique of & going be the we and a it brands, store. about is about for experience. site. on Taylor This In the our expected dedicated spring. flagship as excited Think app. Lord to store deep It premium

and it's think to look spring. good we So a we forward agreement, the

Oliver Chen

happening, Can enhance customer there clean, Cowen we has to Okay. And volatile. should and anything note work to continue around and of at satisfaction Steve, our is satisfaction that's opportunities some revisit large? fast, friendly, survey customer you at been

Steve Schmitt

a things. there's of lot I Well, think

from U.S. out, a XX check list to door the If time the you Foran, the talk to that, CEO from standpoint. of probably could more booking time customer of maybe walks our the Greg the a list XX, even business, than to in they he

It's continue of for at we to us. it. So, look emphasis a point

they customers tell can the to with continue experience continue make shopping that results, you like stores, making we'll think we're the a changes our us. so in our to in and better look I

Oliver Chen

lastly, just inventories, in-stock And where inventories, and to They negative that's see down. a you Are look attractive. and to with feeling like you are we that Thanks. were relative continue sell-throughs? continuation, levels Okay. fine they

Steve Schmitt

So we're with our happy in-stocks.

We continue to make progress on inventory.

seen the continue more in we year, improvements the You've we we'll improvements incremental look versus, can I'd step say, and for change improvements saw make last business. to

Oliver Chen

you. Happy holidays. Best Thank regards.

Steve Schmitt

Thanks.

You too.

Operator

from is of the your Gutman with Please Morgan proceed The Simeon next question question. with Stanley. line

Simeon Ari Gutman

guys. Good morning,

math, just the First, to wanted the some I excluding do hurricane of core business, if we some ask about impact.

up from midpoint little add you basis I EBIT tells out, and points million, let's the then looking bit. of a it XX that that the the how guessing hurricane that's I think if margins take performance. at you back EBIT, I'm U.S. you're $XXX say, – were think

look Just want it? way fair that's to to at confirm that a

Steve Schmitt

Simeon. a look at it, way fair think I to it's

Simeon Ari Gutman

Okay. I was don't if but XX%. about then did the know picture, to this, your you'll Jet.com eComm benefit and up talk bigger comp,

out-year guide XX%. going a you're is think Is just – basically to I the mix out.

– XX%? expect of Are growth a it'll that to in and fall was so you forward? in out should quarter, Is next guess, it that bit rate I to just and quarter. the going You're that little glide-pathing we in any going the of there part change Jet

Steve Schmitt

that Jet way the Well, for comp up. was a our in if month, calculations the you think for thanks work. about comp bringing Jet, and

continue impact much really our overall. transparency eCommerce more of in earlier Jet the there is this a so piece made a wasn't we'll we to on quarter third we really business and our eCommerce of way year whole. decision total. U.S. in the give So the the our think furthered We Really business report an results. in to on that eCommerce October about meeting, as is business, eCommerce

we our glide eCommerce path, a the feel of business. about of terms good In direction

think terms as or that see. good quarter another I we'll that wait of path and glide report But will example we volatility, we this any in go. is and of

Simeon Ari Gutman

Okay. product or And you side that growth know? category. a that piece, PowerPoint, in on in the unit you performing last Is services, services is on is out count that you're if in strong vehicles in the called automotive the

Kary Brunner

the is but on a step good like Simeon, automotive also solid instance aspect area. goes things are Yes. from, in it Kary. for you've on and as this both. number point quarters seen tires Really service customers to driving up certainly that last It performance Walmart's price over is automotive of increasingly

Simeon Ari Gutman

guys. Okay. Thanks,

Steve Schmitt

you. Thank

Operator

question your the Our America of line Ohmes is next question. Robby Bank with with of proceed from Lynch. Please Merrill

Robert Ohmes

guys. Hey, ask I the wanted food about to business.

inflation you make you food? what on really see you're – then maybe us Can out, great some think on it little strong. noticed, even to it you online Anything comps Is was doing Can been pick And promotions was driving same up doing it how called food lower. forward? the any guys I guys inflation color commentary and or guys you the You your a color any Have also that special the on significantly? business in supporting are you how comps. those Thanks. going store outlook give in on bit I give the the that? so

Steve Schmitt

comments a Thanks, more detail. to Robby. to few and turn Maybe I'll over Kary give give little it a

we'll So first. inflation piece the take

inflation – price points basis a is inflation similar be difficult into we his what got the us think what as fact of said really The to reported it's getting in which in quarter excluding past which you investment with price the we've this very about our XX for is in – investment little look So made food that talked was number it's the we is range really it's or we at a we've markets. quarter. and bit more below reported a on as way precise we Brett that remarks,

give some as difficult, it's analyze as you going business we directional a to help you of those investments, so forward. we'll becoming little can bit As we just more that number as price a anniversary

that's In for online food business overall up. customers. of know business our you specifically, grocery pick We the that grocery or terms working the mentioned

locations to X,XXX continue in We and next X,XXX another it. expect to year. expand now We're add

and us. So that's our initiative working love for customers it. big a It's

It's of it's, quality price having anything well. different in-stocks of it's are Kary, and you things that want other product, working, assortment, it In it's a lot as again, is component of terms a things. add? to of expanding else

Kary Brunner

improved. grocery. and customers lot off then And a particularly Price right. is sequentially a I areas focus that great fresh business really, good to it's stores we've points has responded There's spent presentation the the online earlier assortment. of are top really categories within with that think really areas, fresh that The good. on,

So I said. top would on that's key say areas certainly what Steve

Robert Ohmes

Is a Walmart versus between between store it In the without a those trending the terms comp online of store it? dramatic? grocery grocery the Is comp spread at two?

Steve Schmitt

for know of We an It's rollout we But our initiative. won't it's plans. give on specifics that. the based working us

Robert Ohmes

All right. Thanks, to try. I guys. had

Steve Schmitt

Thanks, Robby. And I appreciate it.

Operator

line of Research. Please the from question. your is with Scott Mushkin question with next Our Wolfe proceed

Scott A. Mushkin

my two Hey, touch I Thanks the to specifically. for guys. question. U.S. taking wanted margin on things on

the now think the you first rapidly? in we with actually that I (XX:XX) at leveraging are U.S. look should How labor thing costs is, accelerating pretty expenses

Steve Schmitt

Okay.

manage other our I to we like So labor think we business. expenses have in manage costs

we as technology One the be is, that we more that. with the want of We our have helping about we costs. be to are need efficient. the grow more disciplined of big enablers to that with initiatives business talked some We

reach to and in manage to can efficient have. that to the look margin to labor we objectives the have that way We do have we costs we most

what that's do. So continue we to

Scott A. Mushkin

as then margin... gross the far as And

Steve Schmitt

Yeah.

Scott A. Mushkin

about beyond? companies goes little and factor far wondering of them. talked think it was Thank talking thoughts that's we cover freight, any cost I pressuring ...we've But could bit. Walmart going freight as as about a lot should fourth How up just maybe give you. and we you had that a been quarter about about us

Steve Schmitt

Scott. Thanks,

think freight you other that think business. we in manage like I about just variables the the

Thanks. the experience freight it's to of have P&L we would or have have levers please? have to that any we lot cost no be in specifics We whether in I on next you Rob, of pull increasing. question managing But terms objective labor a exception. freight, different and the don't freight the for deliver

Operator

Barclays. Yes. line The Karen the from is of with next question Short

Karen Short

thanks. Hey,

leverage. on question quick a Just

So, in million add a we XQ higher was, even saw hurricane pretty good leverage if I guess, some and obviously you of that impact. it portion back $XXX

to comp of point do this So sustainability I it you so that – think and you part that that obviously, And get into question about leverage guess it. from how is, and the do there helps know fourth quarter strong, think But, I about we then beyond? could the is of was was that the anything that quarter? how we specifically the

Steve Schmitt

efficient with we talked disciplined one Well, started the which while mentioned to and of goals I it's about overall. becoming piece thing, just ours year you great had one for it's expenses a forward. to now in third It's But going know expenses big more objective towards overall. about sales thing, the being quarter. There's We've a leverage business lot. it's it see it's not talking and been really not with that certainly we of more But our that helped. the to push we'll our continue that next about it's a that. about

Karen Short

you But in penetration comment give on could merchandise about you give then, on there's number. of Any could U.S. maybe you're the great. would that, color I anything? to the commentary And private color know reluctant added, how Okay. improvement highlights, in that in you you included a many SKUs any brands. give, really be terms if directionally

Kary Brunner

spans think it multiple great And grow. to continue is this about does Penetration Karen. categories. I Sure, what's

different we're about You think where like brands. areas introducing private food,

an private brand a and improving wellness, Baby, within Baby good earlier consumables, saw selection. certainly about You quarter our in the this and you offering categories, announcement our health have

at a continue to right focus there's the and it's there improved give an of a So focus. opportunity we will quality price an the to you've for for be Often, area point from heard that think Greg. customer, key as us,

Karen Short

get And we percent that? the ever penetration, will

Kary Brunner

Not today.

Karen Short

Yeah. Thanks.

Steve Schmitt

Thanks, Karen. please? Rob, question next

Operator

next The from Edward line Kelly with the Wells is of Fargo. question

Edward J. Kelly

invest margin? role on my play guys. in to I impact And question. for the Good gross Because in taking pricing price the type the quick. pricing it's to gross environment. any in inflation Hi. Was wondering back, change of hit the of Thanks strategy? are an there on morning, did costs and more real the margin sequentially a more pressures, costly cupping in if return harder I'm because in wanted environment. in of it's obviously, price the to that inflationary it's invest simply (XX:XX)

Steve Schmitt

question. your for Thanks

to two ago me that to surprised that, pretty continue The years close that now. we keep vest. pricing laid of you're going out, be we we guess, that, to So, and hear details our strategy execute I not the to say

along and is a that we're doing, pricing all with to So customer the top piece have grow we line. initiatives what of the other experience

strategy, going the of not continue to to but execute give and we're we responding. customers pricing, So details our specific are

Edward J. Kelly

grocery. on follow-up a Just

impact upon there certainly it I think of up low and digits seems were acceleration tone hurricanes just here, out you like said single an an food. category, in the based It in comps have the outsized like was Doug, would sequentially. seemed

that still Excluding sequentially? accelerate business the did hurricanes,

Kary Brunner

We've the overall about quarters seen price for really business the improved, assortment, right. presentation around, last call. improving to customer, really the discipline it stepped-up we've the things over earlier the trends has gets lot of number in our grocery business, good are fresh talked on of points and More a

about in So well. is customers the are as to the we to Traffic business coming improve grocery Walmart. And increasingly continues ticket talked units. falling, increased

past year. number, but the over we've within as So about certainly, grocery seen hurricanes a improvement the factor you've business, continued the spoken in are

Edward J. Kelly

guys. Okay. Thanks,

Steve Schmitt

Thank you.

Operator

Charles question of with Haskett. Gordon Next is line from Grom the

Chuck Grom

both the bucket, remarks and adopting if guys us? and any you his younger old hoping could it are Good for efforts. she that online and thanks. Doug that customer, prepared shopper both Is how back, there's so new do in-store? keeps you quantify customer in morning. was new online new you way coming the cultivate that some and that a spoke customers of dig could I into Hey,

Steve Schmitt

multiple October we base more good customers. us Well, mirror of meeting, if than overall, out in We're customer using how channel you an U.S. Walmart population in customers pretty are with spends really it's about omni omni the image new laid our single the with that the pleased customer ways, think us certainly actually and experience general. in a

that continue to we So push forward.

age at that. have We'll year. us to where move use customer doubling In almost wants terms omni don't to know pick in different to Walmart, the and expanding at different the are information. because that online that brands into it or grocery of that, in But ahead particular whatnot that's do continue to adopting faster We're that groups up, a continue with channels, to multiple our our ways. customers forge next order, we we'll we use we continue experience

Chuck Grom

you that? any lot would if of there? a are how Okay, then consumer. macro that follow-up you acceleration thanks. when you it did guys the on past of be, still guys And the survey at comp, are the And is versus health Wondering in out you your you work tailwinds the doing much of think look in do

Steve Schmitt

quite as do bit a of We you Chuck. expect, research would

I give – and it think So mean, now is there's data customers doing nuts reasonably, we get, bolts the I a real is that scientific the The you a we that won't well. think lot answer. scientific I of of reasonably

the are a customer, we I quarters, quarter a but mean, that seen don't the haven't over marked results customers is we a appealing this our in in change good right last to, We marked indication now. change continue several certainly see initiatives to our

Chuck Grom

Okay.

it quick in my you XX wondering points. XX was the be, to I'm two it closer was up divergence the Just up points segments? Sam's would inflation, one just said between but on basis such about why last basis U.S., a U.S.,

Steve Schmitt

and a than mix That's really different anything. product more

Chuck Grom

Thanks. Okay.

Steve Schmitt

your for you Thank questions.

Operator

line the next Guggenheim Drbul is Bob question The of from Securities. with

Robert Drbul

Couple good Hey, questions. morning. of

call going? on give us was U.S. is, out? I that's one the sales, underway, wondering first store that test And variability business, comp associate delivery you within month-to-month an there if The you the was the any update would could how

Steve Schmitt

Bob. Thanks,

for terms that unique assets It's but learn for quick really have. associate we from platforms associate not continue only what initiative the our delivery mile certainly solve of But delivery, ground-based that to we're for the we leverages doing. customers. In test, last to delivery an

learn to that and continue from we watch So it.

Kary Brunner

lot and we those variability performance And was shifts and of a month-to-month, otherwise. certainly noise get with from far there There's noise. details. really don't business the hurricanes holiday As just increased into as

So a was overall good where land it pretty in we spot.

Steve Schmitt

from quarter X% to X.X% our And nothing we that of have. we guidance can the momentum feel you tell fourth good about pretty

Robert Drbul

it. the into the store, just online Got just on I And both how thinking if electronics was category about you comment in maybe could holiday? or also heading you're wondering that

Kary Brunner

Yeah.

long a with picking and We even for they some on something use. and planned. we have work think put and We electronics that a time out increasingly toys spend we've kids holiday great together time

the to available a assortment a that And appeal holiday so for way will And large we both think product in we'll of I customer. portion online. good have think in-store that have we assortment big of and a

Robert Drbul

Great. Thanks Good very luck. much.

Steve Schmitt

Bob. Thanks,

Operator

question is with next Our Bank. from line Deutsche Paul Trussell the of

Paul Trussell

Hey, good morning.

Just circle to Sam's back in wanted nice comp. to Club, acceleration

If follow-up, out for touch quarter, helpful? trend this side, you can then just more And on expect membership detail certainly just on you if that little on more you my how XQ on to go can into just a this the coming the particularly would the Also, bit seems hurricanes of continue out given that as any little can a guidance. us, you maybe impacted detail Sam's? bit flesh like if margin just trends be

Steve Schmitt

of I'll part question second Paul. your the first Maybe take

the XX – $XXX million about million and about business hurricane point I U.S. of talked Walmart basis as the I for be for and out points. XX the SG&A In quarter Walmart cost, to about can We the the margin U.S. in of the net comp sales think laid and headwind XX XX benefit. increased what piece, was Sam's. Sam's to terms be U.S. gross to we're business, we with $XX think as specific we with

I as we from gave much So could that we standpoint. think information as probably

traffic. in to strong than comp think Sam's of the terms what you point overall, piece I'd it, of more In is anything I

So member a growth. traffic X.X%

We in coming have members frequently. more

Go and to what Scan and X.X% make come that like up the to in shop And you point members for initiatives have I is traffic at it would clubs. easier in that's We quarter.

Paul Trussell

you. Thank

Steve Schmitt

Paul. Thanks,

Operator

is of question Matt next from The the Goldman Fassler with line Sachs.

Matthew J. Fassler

to Thanks digit. digits in comps where question from momentum? mid-single I single so particular drive think health in to Anything you much. that relates pickup low wellness, My accelerate first saw and

Steve Schmitt

in this growth same and is also the wellness items kind but is a a in of was so of doing Flu have relatively factors are drug factors some we and very but really branded of last we There that well talk it's quarter. healthy driven and pick Cough just Matt, traffic that traffic obviously same and continue health that this & up of our by heard about the to is inflation quarter have script was strong performance. over as new quarter, couple a pharmacy, (XX:XX) see bit you've that fact sickness well some driven in consistent as over-the-counter us this pickup Cold, the there, really quarters, a

Matthew J. Fassler

you. Got

real Second ask question I want quick. to

to So you storms, said you the go deeper slightly the one. detail into to us gave all on try could going I'm you

If would would comp benefited discussed, have you that differentiate? or you could traffic, think about that ticket expect benefit if that you you that

Steve Schmitt

we side. mean, see the dollar I both. some higher from purchases Probably GM did

Matthew J. Fassler

of get in where Got taken of some of be Should the you. up earnings estate that the out then international to on helpful. adjusted That's are And taken are finally, International? showing out clarity real just and one-time from the excluded divisional items the unallocated, FCPA P&L.

Steve Schmitt

a from it's standpoint SG&A, did the one quarterly on thing rate drive overall. it SG&A point is, the tax to up. FCPA And See geography out

accrual. year-over-year was So of if looking particular at majority driven by the that rate, the it you're tax

Matthew J. Fassler

you Thank so you. much, guys. Got

Operator

of from line McShane Our Kate the is next question with Citi.

Kate McShane

makes like relationship other strategy Can the one way thinking versus you versus of other, and us depending my like partnering what picture nature, that with cases, Good through brands the how Taylor. acquisition and in you've different but Lord bit then Thanks buying pursued question of taking a strategies ModCloth My question. morning. little and lot bigger sense you're partnership, with is Bonobos, & some walk is? in a just for on about why cases, in

Steve Schmitt

be the to think is key flexible. I

partnership eCommerce look of JD point of you initially around we've I'd largest makes had the in to to really partnerships at with China, partner in some you the where business, sense. that's a If the one platforms China,

to you that give unique (XX:XX) platforms. a parties. And partner, access You great be Bonobos to can Bonobos like acquired, to have like leverage like then great we can that brands specifically, your brands our have for bring brands we think really & to that would both proprietary way work we that Taylor things site Lord to the you us that capital-light

we'll key more give build our think and to be customers to as flexible, So continue I to assortment the options. be look is and flexible we

Kate McShane

the Thank you. I Great. And impact Okay. be any Do if question, the a mid-tier could demographics different, are from? that with more ask ladies from can either do a but little the unrelated. you're or bit other door Obviously channel in of you up picking particular, apparel have on perspective closures, area any you benefiting any from have that second share measures category? that you

Steve Schmitt

useful tough the scale of It's it's I don't third I our think from. growing think we have apparel. when you in But, hard taking information, a any, that's on particularly dissect think, dissect you're business I to quarter, look, I to like who don't have ladies on did and share.

any any specifics thanks that So for your I question, you. But have for on color on Kate. really don't

Operator

Dan line with the Jefferies. next from Our question is of Binder

Daniel Thomas Binder

My volume I of versus Thanks. and using question discount very accepting time into how was was beyond free as that's Walmart.com. on recently, will that Jet.com-like, noticed own much I debit Jet.com and for returns, or Jet.com and or credit its cetera. type be I'm skipping website, et something Walmart.com discounts for wondering the such had integrating buys discounts that got ordered a two a days, and delivery Walmart.com around

Steve Schmitt

Thanks question. for the

TBD. it's think I

think move test, we'll learn, and forward. to I continue

lot a ideas. got of we've So

in-store month A lot you to of lot saw that of underway. of have about. doing were them, initiatives a Bentonville a that there we're We we're things that lot excited came last

So some some fast I fail what take think and too. and swings, works, initiatives you'll expand see on us see test,

Daniel Thomas Binder

matches was close imagine to I'm around curious I can started pricing you the you is, you about extent And lower to campaign, my cutting as would price when that had and prices, and gets it, further second some are where comment the What respond. you what extent on in you competitor the that or a comes to question are? then pricing, expect

Steve Schmitt

a time. certainly competitive look We we've environment, long Walmart a that's take for at at done something the

So we continue that. to do

about sure everyday do and on is where brands of our make the we goods, trust baskets that's brand continue we'll customers to for Our prices low that. (XX:XX)

Daniel Thomas Binder

Okay. Thanks.

Operator

Our is the Scot Ciccarelli next line RBC. from with question of

Scot Ciccarelli

guys. Good morning,

Steve Schmitt

Good morning, Scot.

Scot Ciccarelli

this traffic, question the up there that cause was point is, assume continued hurricane ticket guys investments? you your my can to price half quarter, on was anything especially, given half average ticket. So impact let's Is on to spike

Steve Schmitt

baskets was a it, of Bigger Scot. piece

Kary Brunner

more merchandise food and we – strong, wellness some areas call. gets already we've talked a continues apparel. sold being well. trends. like in saw categories and we even performed health definitely The this pickup its up And units saw again, well good again Yes, and as some general our of this this back about quarter very Areas that business automotive hard-line, to quite tick a the on in

So, all those are contributing to the overall ticket performance.

Scot Ciccarelli

you your SKUs eComm item. guys available housekeeping it. it in of that number have on I the end at Do of release. platforms the then a the quarter? see just And Got didn't the were

Steve Schmitt

over million. XX It's

Scot Ciccarelli

million. Over what that XX to Steve? And compare does

Steve Schmitt

gave, last it I was the think summer, we In million. XX

Kary Brunner

That's right.

Steve Schmitt

progress. make to continue we So

Scot Ciccarelli

it. All Got Okay. Thanks, right. guys.

Steve Schmitt

Thank you.

Operator

Group. Feldman is the question from Telsey Joseph line next of Our with

Joseph Isaac Feldman

question. little it core the wasn't of You to wanted these there a But you alienating almost there much maybe maybe past the your too got went things you risk new again? brands? while. nice you've feel any we and end saw Yeah. stores end, add Do I & was with for worry taking this is time so but got that up some very about of customer going were cleaned guys and end a high higher I And Hi, in for high you too like know a the relationship Thanks I KitchenAid, Taylor. follow-up. like with guys. Lord know

Steve Schmitt

question, notice us. with brand our great your have for associated it's assortment which of that you also Thanks seen Joe. now – that part is is you Bose, now in the we a we And and appreciate have may KitchenAid's

helps worry premium learn you website. that, looking brand the always you and really well. the are that it analyze brands for We and on about at I customers know watch our So, look think think We we data. data overall. We the

them So We're and we'll happy our we'll part of learn. have like assortment brands to to continue that. watch as

Joseph Isaac Feldman

to just positive And line second. right Is seen going competitive the in a on quarter for international Thanks. to are more that now it. or then comps getting comps. another, Got in a UK? follow-up, with quick to back it you're second are The just price UK, shift other the that be helping things investment there the the we've gears simply drive

Steve Schmitt

been on think basics, increased focus to maybe we're I over at and it. months it, getting green see some the But a better closer back is of call to last, pricing there. experience I customer giving XX think starting least an now, to months shoots there's piece the a the XX

Joseph Isaac Feldman

it. Got

guys. Thanks, this with Okay. luck quarter. Good

Steve Schmitt

Thanks, more questions queue. We We don't the any appreciate. Thanks. guys. in have

thank wanted just and their I holidays. care. Walmart happy everyone for for in Take interest time, So your to

Operator

This concludes teleconference. today's

You may your you lines your time. Thank at disconnect for this participation.

Walmart (WMT) 16 Nov 172018 Q3 Earnings call transcript