WMT - Earnings call transcript Q4 2021

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Dan Binder

Good morning and welcome to Walmart's 2021 Investment Community Meeting. Thank you all for joining us on the webcast. We appreciate your interest in Walmart. I know the executive team looks forward to sharing their strategies with you and answering your questions.

Now, let me get a few of our usual statements out of the way. today's release be can and on website, at with in be presented our press our earnings stock.walmart.com. information meeting viewed should conjunction found The materials that they posted our be also will presentations website The as are completed. on presentations future and to results differ uncertainties are statements. these actual events materially cause forward-looking from that could Today's include to subject statements which on Please included with are reference reconciliations our stock.walmart.com. non-GAAP website, which our entire and Safe earnings Harbor materials statement our guidance review Hopefully, morning. issued you've and chance earnings this to our had materials a

Q&A You CEO objectives can then Brett first strategies hear have will from conduct brief break on And we'll year discuss Brett people agenda after you you across today. fiscal your other screen, priorities Biggs. will We'll Doug leaders McMillon, our and sessions the the will moment strategic opportunities. see today's and and some he'll QX with in and minute be Walmart's discuss will thoughts a and who culture, CFO, XXXX our a President then guidance our our initial back our hear and from results session of to XX then about several and Q&A business. Walmart's share you two our discuss following

started. formal will our we meeting Q&A will conduct will session. break With have our presentations, these session, and conclude. Following let's second of end And brief another then things get that we at that, the

Doug McMillon

for joining thank for you community everyone Hello, XXXX and us our investment meeting.

that well-founded us we interest update by give our there for see have been our the so on so to ahead. around you confidence leading opportunities exciting more associates so company. encouraged and grateful is and embracing you part and much happening was in for when Walmart for remember and and we time your how believe change. We The XX inside the many of We our in world changing important a can't ways excited is in I'm an and company are our I've are future. than of change I a big now years confidence are

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and supply respect our show So words our and our We’ve communities the stores, seek and clubs, shareholders, with courageous. and know our the valuable, our and gratitude frontline over approach They, stakeholder with in deliver selfless chain customers, business we actions. strengthen, many that to to partners, along our multi tried been our have our and because planet mindset suppliers the We shape we and view most we serve take time. sustainable associates our a decisions.

plan. remarks will will clear about through understanding our in our outlook few you Brett how fourth strategy growth. session hear today, few of on as will we for specifics the the confident of sustainable next As expectations and after of about a Then as the join this leaders provide you a key for leave years. deliver long-term talk come moment acceleration to back results our an several well quarter our for I’m the of will to a us from his talk with our I'll points. to

and in Walmart is speed. position to innovation us for more time faster. First, a aggressiveness strength our even and It's dial-up and we momentum. go have of

accelerate that through to feel walk we we our you and in confidence way. Our will why motivates us plan

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customers haven't before. ways assets into Our monetized us in new we tapped are in serving ways, welcome our being capabilities and them and

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We and on can to while a flywheel. strengths have mutually foundational who true like build we EDLP our EDLC. are reinforcing We stay cornerstones building and

line starting more are the top expansive drive bottom and in ways. to We

over which diversified, us Our operating will time. more more income growth becoming bottom is line enable

are our exiting repositioning be We in resources some different geographies priorities. are to to shifted and so businesses

a uniquely We Walmart. are model, it's better building and

create will our to we shared designing all business Third value for stakeholders. this continue

We we Everyone share to benefit. are out even associates, suppliers will that a in customers, for minutes. demonstrate few are and shareholders I the be strategy our as on specifics back communities wins. company do more can strengthened, to more good grow; people

quarter future. welcome like would to I Now to add on the view Brett Brett? his and the

Brett Biggs

with the all this morning and unique of challenging more for one Walmart Good thanks, faced. been and two times than and I’ve is Doug. most decades we've

helped our in highlighting serving I'm some forward those associates you of However, it's looking transforming accelerating morning, this Walmart There Walmart our you us to want an I several into our how omni-channel presents and take and This are period things ready. responded for also shape it while future. progress business in away this are recent is proud great a I'm we to from opportunities, morning. have of customers moment strategy. a time The that truly for prepared important and so this for

shareholders. future billion leverage. to the First, fourth just momentum. We portfolio Profit operating of strongly than constant record completed sales currency of great And to focused to company's the the We our billion associates, more we and remain give quarter long-term. thanks shifts position in customer tailwinds resources. good of now to ahead also but during merchandise stay we believe strong we growth in returns improved billion. From invest invest the has performance also performing we these investments on is cash extraordinarily profit technology, will overall. had Active including and the of investments Certainly we strong year general a laser and delivering expense behavior. growth well. and strengthening mix have focusing allowed associates, automation, allowing going a great flow sales, model in chain, in with sales, are margins, top are record of and things; $XXX efficiency to accelerate in a $XX and sustainable year, strength, our of operating us in number management strong, particular improving accelerate of record to improving $XXX and margin business, in sales supply was This mid us the eCommerce line

the year. quarter to and turn fourth of the highlights let's So

$XX and During by spending. incremental currency educating in year, a quarter levels in the will net to sales we up, which XX% both things revenue of for by We Walmart for the elevated had home home, strong, season home, followed was for at the billion billion holiday and investing stimulus billion had course than the stocking those saw parallel, year. X.X% their an decor we strong and for in grew Walmart acceleration And costs, customers sales year, fuel or increasing at continue. In by sales U.S. COVID growth QX supported eCommerce. entertaining in yards. year. grew related $XX more U.S. were constant annual $XX eating some comp of the and January. excluding including Total

in year Outside the US, markets about than of constant $XXX quarter in a including income declined million strength incremental the decision currency. context, operating Dollar fourth billion than $X X%. ensure of of of excluding Sam's growth for expenses membership by and up changes additional wrapped related that repay associate increased and XX.X%, pressured near the X% a sales Club and increased basis would XX to similar Adjusted in increased including Sam's around announced annual revenue comp related a a currency X.X% charge terrific posted well a the net of and bonuses, to success, increased and more relief Starbucks. wage $X sales it and tech to grew was to currency tobacco General more quarter, the U.K holiday tax property Fortune sales pressure growth expenses Now is recently full year as also On year. which granted for with head to the XX% for in in earlier well U.S., nine sales, structure as own, Canada. The Walmart in season quarter our fuel Seven Club eCommerce some rank international with and year its as Mexico than in the constant on India, billion a comp more included COVID count was XXX. was. positive top the as income constant

as in company have some continued increased charge, solid of income U.S. headwinds, would to operating total operating U.K losses, reduction Despite margin the timing Walmart related as and allocations. on eCommerce gross improvement Excluding adjusted various adjusted benefit income X.X% well increased.

which income $X for loss at was and classified $X.XX investment. $X.XX, billion of businesses by despite with partially QX dividends EPS are the COVID significantly growing costs. investment to adjusted a company For on since unrealized was adjusted U.K value our was $X flow more $XX and an in shareholders as EPS operating GAAP by our initial of strong as share would the property both by X% the the have repayment. held and JD.com, higher exceptionally for billion than increased has returned about COVID each if been through tax constant and costs cash $X.X gain impacted significantly in offset $X.XX incremental year increased but over that's the year, segment billion, for repurchase. assets Operating currency Japan in U.K the not loss, billion sale the in

a So a financially it was in an was and strong basis, finish. summary, underlying year great on it

innovating continue Let's now execute, in competitive to of we're ability our financial and continue the a multiple customers Because talk about momentum. serving to strong to ways. and how we unique in strength, plan position position

the opportunities while growth assets, choices on progress India. several building years to great we've past of international an Over like focusing in made higher reducing markets growth ecosystem strategic made we've lower synergistic U.S., the Mexico, and and exposure

even Now is play offense. the more to time aggressive

intend field. the We are ball aggressively keep we the winning, down and pushing to

to in highlights more and you we capital the years I will few customer progresses. support give efficiencies. to drive morning next U.S investment the will are and hear Over the improve the going step growth, some as primarily up experience, you

us As I year billion last putting thought grew be. ahead our we at we might of mentioned where $XX least earlier, a revenue year,

us more aggressively allow to to automation, markets and enabling and infrastructure us supply increased eCommerce need reduce shipping technology. with assortment, new This key in both chain, capital lean expand we and cost. time capacity, will fulfillment So to in

automation will and aisle step in stores. DCs to department-ready pallets, up deliver We

to and growth up efficiency programs significant and In opportunities capacity, pickup continue rapidly see their other delivery to continue India adopting initiatives. services. see Flipkart customer our to facing upgrading enterprise technology. insurance, eCommerce step the we technology PhonePe. mobile existing will transfer, and enhancing by will refresh class systems using and It's to exciting and use We money merchandising legacy phones for stores we Meanwhile, emerging investments middle and

associate and a experiences. and the capabilities of use stack our cloud to customer of on modernizing the and increase simplify We efficient journey tech multiyear are

to accelerate versus year increase around of this most be investment, is CapEx the year with we $XX As expected the U.S. billion in last

Over expect we the CapEx X.X% to next few be to around X% years, sales. of

line rates company's past heavy to period income the during adding company or X% top growth the the growth transition, allow growth. far long-term. to is plus a us year would higher put every higher equivalent CapEx After position our the should few the of and operating Fortune rates in strategy, fully will sales of year. for it in this optimize so in sales X% turn to these of basically and profit While below growth mid of peak sales. of years, than supercenter top investments and X% a This the X% than spend is XXX us line accelerate growth be

returns XXth consecutive authorized financial unique growing a And you us strength while to $XX saw continue next are increased our to as allows give we repurchase so. program, business. to underway for the morning, the which to this Our year initiatives deliver strong investments us billion plan confidence new right the and There many we dividend execute that the are share time. right the that we or three these years over at so shareholders

are and these about you'll points, already proof seeing later more We hear on.

U.S even on growth the we key expect businesses and in and ways. international money We focus strong markets making expect continued as in rates higher growth new

and growth an margin merchandise and services other a enhanced mix for with offering, sellers. fulfillment brands marketplace expanding towards new improving continue We will general push greater through

customer existing like initiatives We Walmart+. through new will drive growth and

sales financial health businesses services the will increasingly with and margin in marketplace, higher like. services, profit grow growing and We care advertising,

discipline to continue operating or basis pause Our year. above a sharpen. FY expect continue will additional 'XX wage I to because XX investments, primarily leverage at in expense of a points After

specifically year. current expectations compete now and feel strength. very We this to business for a turn underlying good of about me Let from our ability position the to

over we the However, what isn't and see that give which we continues the best year, caused several which view degree very Despite similar absolutely suspend want and facing guidance challenging. make quarters We short-term now. balance challenges, we what and this this at us we of time we both the COVID-related are given to headwinds right know we have know have will you still to tailwinds can to and clear. guidance, past

additional globally. any As length of efficacy to continued sales duration and limited growth. eCommerce COVID vaccine a with comps U.S. and around and if single-digit and performance year the would in underlying similar year availability, to the we would generally Walmart from this growth comp result X-year and around progresses, XX% solid solid on climate of single-digit conditions get stimulus mid-term the stack time hope for a expect basis. stay Even scale stimulus, impacts, with low more economic Low clarity economic we continued now, comps

year toward of COVID-related stimulus healthy growth. very heavily level growth result middle 'XX. of We as the of expect a FY So, would more the the of and weighted in comp to timing the be demand

moderates depending Now Total with level actions. being that Sam's are stimulus we And unique. last virus, There strength U.S growth divestitures, responded in home of tobacco. people the against decline, future course responded on customer comparisons U.K., primarily to different International, strong some see sales or course that divestiture as of really to changes up, to point. the the of in and/or due they anticipated could in stimulus businesses so, and year excluding how the were and stocked others at Mexico, less patterns significant to look how spending at versus COVID the China. stretches and how crisis at The divestitures and they comps, hopefully by and are we were more, Argentina. In excluding higher single-digit expect fuel India, of sales expect company to Japan, low expected driven

earlier, very year expected we $X.XX we approximately cash. operating held assuming transaction, mentioned we divestitures, low in in to 'XX. regards in to the that, dilution we when flat EPS in income From the year the would profitability first company the to announced digits. we a it, In would slightly excluding assumptions strong proceeds up standpoint, full said given versus a sales EPS of Excluding impact FY single expect we be total grow expect the and to profit U.K of

mid-term, hit timing about in hold but as expect during in cash We flow, new the EPS plan still affect due cash to in a We into XXXX EPS reallocate by normal to more be impacts than thoughtful expect but time the FY that $X.XX. as strong well cash way coming quarters share to for the this make up negatively there to will projects that repurchase.

expected decline growth expect provide dollars in should operating the and a that tailwind to International we part some income large to we basis, with COVID-related Due along of Walmart International Walmart quite we operating and quarterly income in advertising portion consolidated this a like gross a timing, including spite to and traction on future years cash. revenue transactions larger are accelerated we 'XX but 'XX FY 'XX are continued become variable. growth expect COVID EPS year costs slightly reallocate gaining of the more technology as of the last a Alternative FY growth FY to and in 'XX U.S. However, and FY streams profit steady Services rate. to cadence increase costs, wages. to EPS profit increased in fairly Due in profit transactions, to and future versus the expense expect margin be Fulfillment

and and and lot to to Walmart. about We that's relatively operating challenging last over times years, unusual like cost very asked are lens. income to certainly lately. for than are half some up with someone I in short-term XX and down its quarter investors And strengths risk to be QX and high year in to a divestitures, have I stress flat be about I capabilities. future analysts, a and see high EPS EPS ago, a fluctuation. probably different Many step we timing years even less slightly to the averse. and it through its a for and presence Due this the question can't be by even by financials operating year, income projections creative faster, more causing And set back EPS was five creating FY of mid may unique enough, evolution potentially years to the others, Walmart's single open single QX operating of me and I've get here digits, to last for to anything time, very and our this significant be in about been even different its digits. QX mid we Again, and its the thought to actively Asda reflecting the and rate up, ago; missing tax of flat building 'XX three QX income on It's and fluctuations. expect

describe to want me you see. the I Let Walmart

customer We anyone than world. in have traffic the store more

one have And we the We pickup the scaling not businesses of, world. if largest delivery. in are

of largest eCommerce the the We after we approaching next few couple believe are one in world, billion the that. and of companies revenue in a years, $XXX billion $XXX in years

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We market opportunities. majority world, growing most world. one successful owner are Walmex, with are largest with the one India, billion majority of owner in largest over cap of economies in of of eCommerce in the and we businesses retailers great payment of one and $XX the the fastest growth In the

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in future. should rapidly advertising be business We have near dollar platform, a growing multibillion which the very a

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aspirational to leader goal a sustainability a with are clear regenerative. We become in global

top still to are in as And see. for Brazil, for We have accelerate in will a growth your both that's us exposures you it to time Walmart We to U.K., reduced interest That's turn you line And always, Doug. This thank over is the and I the the scale. and over Walmart. want $X.X I trillion. I we ready. sure we and Japan, make have Argentina, will our

Doug McMillon

partnership. you you, Thank your and Thank Brett. leadership for

our we are and the the our needed hours members and new across and more in an hundreds thousands to really results growth explosive to clubs we the of protect to for Growth our picked rather support with and stores eCommerce customers how We get company. pickup to everything unpredictable serve it ways business work to them the with learned We enabled and than right. quickly safely hire well found Innovation the didn't quarter when capacity associates, capabilities delivery. which speed environment, serve people managed in really We and fourth health days, they year. and moved certainly pleased in our strong was and of them. for get up. but people of when in We needed add

change. standards during strong Those Given they'll last one would to courageous. in history, They hard supply associates density of been should world. suffered our We around periods in constraints, different impact the lap reduce difficult do provide and want I by really portions the that year adapting presented XXXX results the customer hours came all worked the to health store realities continue upside They Store have most I in-stock year. our are were over They did forms some to significantly of the year. but hurdles to impacted. our crisis. to extraordinarily again, know in challenges of past of and overcome weren't limited limit sales. and as we the the The thank so.

to economic These of social, are all we We the all face. have and realities problems are deep-rooted that tackle. we political aware that difficult

be of part As Walmart, to continue we solutions. the will for

we donated relief than sites. and stood million XXX up and the crisis, with pounds As We helped $XX health to in healthcare in it million relates COVID XXXX. PPE over of workers for food for more hunger testing grants

country effort. the vaccination the in Now, supporting we are

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take I we've attention. are sessions. your first associates then the we legacy. and and that more continuing so Our will what of will questions two moment, from Brett Q&A far you about you shared In hear team. Thank will begin a your the for

Dan Binder

Q&A our this joining for session you Thank morning.

As Raise reminder, please question, click if have a you a Hand.

upon You that Participants may or this Reactions will ask click When host button screen the your you, calls your the then find question. on Unmute the and you can under button. appear

moment. a take will We

we Our first come And question that, R.W. Baird. will Benedict Peter will Trussell. from after to Peter? Paul at go

Peter Benedict

Okay. you hear Dan, me? thanks. Can

Doug McMillon

you. Yes, we got

Dan Binder

Yes.

Peter Benedict

Okay, guys. great. Hey, Thanks.

So, I here. two-part guess question

that? capital there this the maybe what's that, should more what out of how getting do can -- X% of the thinking beyond higher First, about tease associate some there, more, areas that Thank Are the And think just guess, the U.S to X.X% spend, all be will is components business to you be of a versus that you investment, less, bit timeframe your certain we as get talked beyond the think making on sales. hour, this base should you related that at And kind of U.S wage maybe what where you. year, I an then, much? the least continues you little Brett, of $XX about for are on a areas year? there

Brett Biggs

off. kick will I thanks. Peter, Yes.

we're as mentioned we've in to places capital, about lean -- a strategic definitely really that earlier, my the going but that we're talked standpoint from remarks several into morning. on for going I So this years,

on go particularly you've more and been time, following we XX%, were back for leaning supply of capital long more are company new years, stores. the XX% if Peter, we spending several or a So chain on eCommerce. you

are the to thinking And just have so it things it on in where going are you're Now amount Those be those the continue the to of get globally, as on. we next that's lean are the front desires going to Doug, of we're edge supply capacity in on we we be that, fulfill stores about how we've to want standpoint to of focused that and things how turning there're that us innovation to as quickly. and in, to from U.S. many right kind to much few the not and years but they and toward the getting backrooms. make way over the that chain, going easier innovation, customers in And then the more see pallets customers' we fulfilled, been of need things also ensuring the pick the kind

Doug McMillon

to is we majority We to now that like really fulfillment a is to this behavior we now center these now Yes. terrific add see. year at there got think on ready technology in Peter. behavior. that automation. been it. like know customer we're on distribution the now following to can productivity Good going in of least working we the of some And this I'm the terms year wish the for just we're that customer you've while. benefits, forms, been that that various years ago, And where experience automation been a can to really we morning, a things working level Maybe but excited that been last. will on we've it's we've if really anything out, center point I fulfillment store market it'd start but that technology, we I We've will going can us invest ready. take the improvements get of we're And going roll this And technology, vast center just and scale. fast-forwarded that few I closely.

about excited that. really I'm So,

now years many they we when sure wages, us providing to As opportunity is to with to of it like people for creating we are opportunity, of start the that relates career, have. make been for so have company associate ladder the trying an build this a approach that take to

really making at of store this now we are important. done. new store has more It's work in done in needs across the the getting we're approach that get put the picking a even that to to aimed place. the investments Obviously, that right so, structure And those inventory become team things this of period entry time us do raising structure wage. new really we to help going effectively. the be someone might wages to And with longer people been important. that that those for for tend are is earning a And more than is have obviously us Managing

have to all associates system got The succession managers. we that management that then XX% that do store to store move our become and create we're to be to through would of try our but about We've that starts alternative be creating. this ladder, continue able average committed trying as up, hourlies. create and to that so, And come invest to that that, get if $XX we're to we faster, wouldn't and of

discussion around this I an paced think geographies, wage really we kind we've as XX% I of rate but people. country can history in you important a our where But, well And of how proves think also to economy. we're are be than starting raise that wage gone us wage so that over that our starting on many rate. obviously $XX. a in We lower U.S see will XXXX be will and of the raise be the the to mean, $XX, time, today for $X what's parts happening since to with wages up And I aware over nationally others should that’s we our target, for excited way sensitive that's think model from and works. $XX the I that. to their working really should through that I'm And starting good

Dan Binder

Peter. you, Thank Great.

to Trussell then that. Paul next, Deutsche Short after go will Bank We with and Karen

Paul Trussell

lie. of the costs, bit help just willingness fiscal Brett, can to kind we wage to of confidence like? that COVID what discuss today? just questions still compares, investment, Doug, U.S Argentina, remain digital the top the the at then, you how think tough dynamic a in U.K., of you more is deeper, and guidance best contribution what’s growth us extent as the some Japan, to Good best know positive looking and can volatile morning. you backdrop, should looks 'XX, color parts in about in that on your you dig where provide despite the the as moving as and Thank driving impact line my the And expect you just for especially a many to really guidance little for the the just and

Brett Biggs

Yes. Paul, you. it's good to see

that's the as asking question your you're question. answered almost how You

imagine, talking we're know. what's year through, year with economies, we what's But want that this give best you what's now, do give it's in guidance going a we the going to view the vaccine, wanting have everything than typically talking going happen in to happen we to because to were knowing we know as other on. can you right through of parts to normal we we about that -- going happen with less what's As

about to a give pieces fair so, be and be challenging. talking or can if just we've we've getting to the a close specifics up to the a trying as those tried give divestitures guidance we you high any apples-to-apples. without line look the than But individual So, guidance, you divestitures, at level to bit you raise top so and -- to little you have, given pretty more even we you excluding of as give we're guidance and little would

growth think low is so, and for with Walmart And U.S. company that, we possible. the single-digit

that, there. out sitting that even stack. But are You with XX% plans got have stimulus would other your U.S. and Walmart a to things

good appreciate and line top would the it with as very, as income. could we bottom and growth. in impact and trying Japan So, thing now. business, be in you of there and Same an there's guidance the apples-to-apples to all COVID in know EPS We're us be Asda wanted you obviously from line are right as on that operating I very situation still are you not, healthy give that will as if that. we and the give to all

Doug McMillon

variance month-to-month, a about And kept we that retailer, long obviously that did, a February it of and a on and As a growth, that week-to-week, the a to is quarter, went and day U.S we that year and was every in looking quarter-to- relates there's diary Paul, ago every good as of certainly happened lot back things decisions occurred through were what Normally, We we of happening really I'm sure year. activities, March even hit in-stock just to environment in all list the things how hours. side well, hard point restricted great our supply made. like and were turns many of these to an the the Many that things we inventory could sales we didn't for stockpiles it's in from stores. managing have have chain be the people thing obviously, huge changed decisions store. in And but metered we view. sitting consumables. those we our saw We on surges

for seen year. for So, our we our much like the anything And managers, our being went was our a able happened never our associates as what stores store so would I adapt. managers, associates, to in deserve it credit through real challenge assistant

them people had We course additional those during to join help of hired to last people the that react and to of for on leave. on million company. the year pick fill the demand Some X.X in had were We leave over for delivery. we and

being So, much store manager without imagine with a lot dealing of a associates experience.

we've less So, things store in-stock, surface; associates these experienced. hours, all that got were the underneath

If the shopping factors consumables shares out, year. locally food through will the back vaccine We've to people share grow All have next been of situation talked to trying gone people to to those come think. they cause think got roll-out in carefully. that market improve, opportunity our COVID continue may we've we've about continues, market back start to to the this us manage come because an things year. and were as We Walmart

of can, as be of kinds the lot we it. of do sales go will to volatility cause things and just like earn we quarter-by-quarter best appropriate it's seeing explaining There a are what that will through increase in forecast Paul, those go then job that it. feel us we're and we the So, to

Dan Binder

Thank you, Paul.

Karen we after Next, will with and Short Simeon Gutman to to that. then Barclays, go

Karen Short

hear you me? Hi. Thanks. Can

Doug McMillon

Karen. Hi,

Karen Short

just wanted there. helpful. EPS. I Thanks much Really for just Hey, on Yes. the color. the clarification, to so -- one all

it $X.XX was base, just operating used to then, in bigger U.S on slightly in as the correct, we So I flat the of But general. the question had up. terms profit

U.S. close employees math I kind when impact XX% the getting the obviously in And get do envelope I wage in operating profit the you've to U.S. to slightly up to back kind increase, the So, on of of of operating profit guided the

overcome But that's maybe out be comps U.S., and so So, component to XX% or because seems that because hit, little it. in -- that have you to up guided lump up? a a up seems parse can to more, know color bit U.S fairly like of the a that, the -- on that it maybe large I still a sales, little so you've

Brett Biggs

Sure. that. walk I through will you

that impact bit Japan accretive few would we assuming So, get talked is transaction because a math on from still There the EPS, will be to little next that that related is you're did correct, closed the Asda. the your weeks. in $X.XX of But we well, accurate. as be way about you the

last P&L price a decreased other and there's U.S., changing fairly invested the years done over that the we've significantly the gross the in lot one things. several On as and things in has we've margin is had of

they mix; is margin, which improved, Now, were gaps in as see eCommerce getting you to ago; helps good the all the pretty price move product, general there, a helps margin. continues business, having; that that merchandise years to that gross of certainly way have we streams that efficiencies contribution where we're we're position versus that's able us new the income prove,

past where the gross starting at that's in probably forward. margin as not look So going we with case significantly the really times, down you're fairly

Walmart we to again, that you lot wages, continue when But also that. but income, you on there's operating best things of the we do So of things a hit can, increased other have expense the do COVID had this out you of inside we balance U.S. that grow side, you expense significant are just Karen, think but and line. costs that view and year the all that giving can

Doug McMillon

McCall worked really volume in merchants, with additional and contribution well merchant costs that's a way. been Marc others, and home different improvements And the saw. including growth that board John help our the through fixed to and and we profit we that It's then, way come that Scott helpful. the other leverages finally on and to put mix apparel have driven together. That's responsibility teams things, in on mentioned fact people the helpful a the take Brett And improvement. eCommerce

things you've fast-forwarded of what changed changed and at. as a we're the lot again, of just shape got over and over So and heard looking

Brett Biggs

really U.S. And bigger those at the about, all, they're the that Walmart advertising, weren't we've even additional about financial more talking been scaling will services, morning, part large revenue things and businesses streams that we marketplace, of a talk this they're they're and P&L. becoming growing

that's So Thank a positive. you.

Dan Binder

Karen. Thank you,

Next, Stanley will we go Morgan with to Gutman to Simeon Bob go and with will Drbul then we Guggenheim.

Doug McMillon

Simeon. Hey,

Simeon Gutman

of a interests that Doug you Thanks done and a taking parter over morning. be first I'll two for balancing have good you good a my guys managing years. have Doug, part then for Brett. you, job Hey, and for last mentioned may few the of the all stakeholders and question. one

forward what then, said, have the again, business it Brett, investment So incremental point this you that should of retail gave this incremental construct, I plus would of is And fiscal get you is you, you're far how the, why more sure of line much And or then, you especially careful, or And EBIT invest like tell realize is those time? seems to sales, much of in plan I'm get that? so a increasing incrementals why get you things been how a can leverage new chain the not you expect the XX-year thinking being is efficient. upfront or pulling over beyond, X some shouldn't advertising, of this But a it as year, it's plan? in is margins debate about 'XX such just and higher better, invest out us over margins more you mentioned, business for we higher the can't growth roughly, in and but supply time? and to

Brett Biggs

want Do start. may You …? you to

Doug McMillon

go first. will I

Brett Biggs

Okay.

Doug McMillon

the mind are not pieces wage investments then investment. the and automation go why about think you the through more, When my two that

the like a of for it's should of camp to aggressively this can the going view. point we go working that and On great think faster, some side, great find can I in wanting faster, looks as we well These we're for take be be from to the as supply automation it's as I'm going If really for we great go. chain, will financial quickly company because time. go and and things really our going customers,

to we've wage we've and also are in that side, strategy, we've to just a a the at in see right time right you'll while the on levels us automation been with executing investments And productivity. we help the plan. we continue path, got think a On got plan, investing make

excited change to hourly this number level as benefits trying and we've we people way historically we're things that And do to of of way, with I opportunities. what for automation care, folks. what investments changing, retain and company people not people making, lot have are been which It's on is one and by trying we've here together. I'm we've be for new is pick think these great you will people are productivity, with play work And and We whole orders that about, that add I to to brought a in great. automation highest to a opportunity employment. the mean, things in create things number a seeing. a doing. is but approach are a we to that of great we what what match to balance harmony run we going of It's with in the hired get the been wages, able health I think the tends and for incentives, And of economy. And only stores jobs, that people what need we craft are do the because XXX(k) do to we to those there's with all that's

we it right we wage So pace, the the as are at to investments. think relates strategically this doing

it things. we doing where is on automation, forward. could these the is one a if So planning all were think it pull and We go faster place I works

way a would I same think the three two be at these it great. And happens that together just have that's that so things happened. in behavior then, they're our model. pandemic or of than came two secondly, had in One scaled is kind changed of to the we and time, ready faster

Brett Biggs

sales. remarks you mid I look this should grow than you should you And and changes look going it's think X profit the business through comment as the company. ability of now And lead sales at Simeon, faster profit And revenue income contribution think And I in different that that's comments general talk ago from that's that what when we as way about investments margins and in different team, looks X do. do a long-term, ways, expect investments, if pretty the to as again. algorithm my at mix, grow made in was to look do and the than look think an in that's our operating in right. years eCommerce executive than the is these said and company making at these to merchandise that the different Yes, believe years what income faster we that to can we all changing, the growing to as we you when you -- operating generate I

Doug McMillon

to And we've these the these get technology for designed a way can internet things, way And in is of thing cool Absolutely. that today learning the And when the that live diversified, ago, that’s things company, mistakes I you certain dots. up the you default and behave to nature. I to looking really mean, comes happening other what stitch together. things can happen. you showed the digital happen. design to flywheel Sears And it's and that and aspects connect that trying the we We that really magic that's watching that got that and digital can it's their life retailers, days in of a the at digital can way and stitch of I technology, years of work because look and path growing minutes a remember mind, we've intuitively wasn't more happen. today ago. different, customers the the sustainable we and school, way is are is that's because and what's in in in that important the We've way arrows that more when that it different become excited of these make is different, things there If about at different. that's do, I a where we way happen. made. were that together more happening business few will possible We a different is a want digital become think we

Doug McMillon

that’s but up, excited company, this It's as business see great. different really is very get to exciting. don't really often, CFOs shaping I look model it a the

Doug McMillon

feel getting far It away doesn't we're too like from core.

Brett Biggs

Yes, within the core. still

Doug McMillon

yes. not -- I'm worried

Brett Biggs

what's that's exciting about so Yes, it.

Doug McMillon

got that we've thinks a And team way. that today

Brett Biggs

Yes.

Doug McMillon

Some of folks. us long talent as new a as the that's for been well with some time

Dan Binder

Simeon. Thanks,

Jefferies to Next, Wissink we will go Drbul then Guggenheim, Steph to that. with with Bob and following

Robert Drbul

morning, couple a guys. had Good questions. I of just

talk the one, can a we you with with first the the showed you you're the about talked start new just think today? Doug, flywheel on businesses bit, that little beyond what it flywheel, adding think you evolve how about will that you Can I one?

Doug McMillon

Bob, as middle, talk they about in put to selling just the and customer the middle, planning. you and think items the might up one Well, love told serving the that that the it's we they opportunity have, you're have buy time discover, were it about you what families But the them all if gone you you of items obvious creates kinds all opportunity. and would put if the that's you were we in that we the ahead that, is ready to

to places. a example. services financial health one think makes a you I country certainly quality, of but people of Health all way also lot in leads way that affordable, us that of is lot in we only with I the think care about helps different more preventative, overall suite relationship into and health us high the up that accessible a is as something in in a that with care help idea think the directions. could could lead different Walmart, health that opens not The people that up care care, industries the make

our and lot of doing of and obviously prospect. continue be products that monetize are in aspects mind a data important there building really valuable really of concept but about in-stock portions is exciting of some also because free work other a obviously on internally ways before. our products, their will And so got talk we that outside we away haven't valuable history are and Data be comes suppliers monetization. that it that data really serving was that's really giving we to our use is data we've and that one data didn't the other digital list to that put a mutual to customers. But The to our is that get could we we and need can help can our and

mile, and close digital, And to digital. those because Think before, of haven't people some will ways we purely provides last this that some so can plus combination advantage a we things for be it be provides. will be speed of example, with of supercenters the the that have it relationship monetized in people that

as should some cases still see be show may show ahead think and work, I and one it Go things. didn't in are you think it business Bob, on, off, we you. this you, taking how adding So, future did you we in tell just And this that's we're we we will this evolving new frankly. one model we I years today,

Robert Drbul

in mute. Yes, for sorry. Yes, questions really. Brett, just the were Two

one is, your I about take price their taking to investment about and CPG from flexibility? companies price. talk of a you lot the think discussion can been ability the first There's price

do how that you it? you I fit second thinking guys The are also question and how into think So Brett. for about

additional any bit to maybe willingness your Thanks. little or buyback, you would be about the take be a share where of some talk perhaps thoughts being With debt it debt is, helpful? will that cost it. can around That on for

Brett Biggs

Yes, on as some as they've higher early been. they've our gap's than price in good cases price I said been,

That's want to a are to But can customer. thoughtful what customer, really as be company. in it. continue get come going the We as going part It's be we important deal the EDLP. as to to and we're who to price as and strategic are you a going are We you basket it. leader it's to that in be about in, to of to be we get want do. important about markets; we a a our customers it's best who from we Walmart you We're

Doug McMillon

got earlier Scott lowering thinking and team and those the would of and just we've times in gave will and are about rollbacks be prices, for be are that the add that to plans families this I rollbacks. some year and are difficult there creating it with going we place I history today. of that Yes, this John you mean, guidance

Brett Biggs

so. over $XX the Yes, three and today we We a execute your or the just next question think that on will capital announced good obviously buyback share one. years is billion we

We transaction now. to generated okay are because Asda coming cash of cash now the in. cash of position of the the think we more right It's in an hold execution and to because little cash a enviable

We are -- we share always look buyback. at

seen and the want this that to The do, think we you've strategy. to like That's want more I we're first the feel in thing is extent to, Bob, to and our business. first we thing we to want that always we to execute doing invest we need the do

get about valuation we down then increased the in Our feel company. years row. kind the about I feel I to it a you XX company. share our dividend, just good buyback, And of of great

morning, will continue share can you to this so see buyback a I us, standpoint. aggressive what as by from And tell you pretty said

Dan Binder

Thanks, Bob.

and to Next Wissink at then Steph that. we Lasser Michael after will Jefferies go

Stephanie Wissink

everyone. morning Good

was destination, around first consumers we by the if two really option to questions their for their your also shifting We using struck you Doug, or I language primary is have preferred the for preferred from could. were you. being destination. choice, an

some and a maybe an really hint energize around about destination, this think that? some better correctly, to hearing mix So the fiscal points earlier and basis then, incremental us on where past the in the points, that about a a teams the little side question goes to how your we margins. little margin? to Brett, alternative XX can gross a operating Walmart+, margins an the Thank your that expense of But talk you should you translate if are 'XX basis of XX give perspective, value you as flow you you, margin more how through a expanding you. perspective, maybe expanding than Walmart on bit learnings from question primary year? into Something from back And on leverage of I'm for streams the and

Doug McMillon

and that primary out in products but would the will that's go back buy time done I'm world always important. I didn't do what store she headed does then, she grocery go shopping, when destination. door my I'm first what you Supercenter I it's now, it in and it Yes. fact you going do get or she didn't And early a Walmart, and she around on teenager at Walmart. bought I'm doing mom really we to a I'm online. going say a could great going we so like The people eCommerce need, and that. you was said Walmart, I first that I everything to say, job looking didn't about was We when going Americans stages. of need? that many weren't But think and to the really And think the today it on of that to what obviously was place possibly the buy

We obviously. are that trying to change

got to you have deliver supposed earn you've provide got you service, got You've to to got the price, the to got you're you assortment, that; to when have to deliver.

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stores. ahead And a obviously from on was this And up automation that the in can but the amazing. grew done, at share these opens choices eCommerce is largely how merchandise got really limit driven we year, If went have than higher a get will rate, other we're happening our past supercenter the a will we've expectation, volume but stores. by all was and We that obviously go general more. much can component their the important. get assortment ourselves too we for and investing Walmart+ supercenters. three sell it and pick Walmart+ a opportunities what that our in discussing or of less dimensions The customer deliveries Our up help of unlock grow don't earlier. capacity deliver that. as today we memberships with change were delivery to that one expectation. will got want we've that, important, the which perishable of of flywheel aspect help plan. store are from is Walmart+ items is to making the enable experience we're Walmart+ many is eCommerce But the that number other

is So we eye Score example Net Promoter a metric keep key our that for on.

let's about that will be But we some Walmart+ growth. Net most in to Walmart+ the more membership think that of that the even selling. when time work more we we're it. and is it over focus that data unlocks may So add margin grow, with number there things items on on enable I then digital helps start Score thing The but memberships are that a I'm customers Walmart+, out, Promoter memberships nature focused quality use mix. as of for of which to will can serve Walmart+ up we number the effectively, not member, to us more scale that

the So, that's something company. matter time over to and that important will

not company. to skill are future great the even the a mean, more be It's that in learning. I are at we We I it will important think today.

Brett Biggs

we go construct several And the when growing feel it's a well the growing progress margin of term; all months are really of streams where pretty we operating get more a Yes, team. and that with in focused more is pull another quarter International. dollars company being that. that my the and we data we the different we've as streams, term, longer the make point happen P&L, on the pull. been growth of side we're important growth you been big to which a still levers maybe a There's again, have really a last long And lever, executive I and grow how lever control gives you works. in dear a imagine as about that's are have, operating pull because in lever, is just look and streams regard Sam's. to our this talked And thing as can expense profit these the to to optionality, very exciting about. at made growing into be X% trying about pull and going all like just money may you -- own lever, loop been to the said a is revenue is as that's we've many with is a even levers pull every can markets to and important. giving sales near through that, pull year We that fun about a and so as on and even it's I helps back have comments, there heart revenue When us we frees confident what lot good and same higher we're I International year step the company. longer even way different These future. investing in in That that are destiny so part can my new or all or up you a over discipline you and sales I really in but productivity as think that to operating We're the percentage, now, quarter levers we we things realize maybe it eCommerce

Doug McMillon

we X% pandemic, thought, grow think you that you what do, before a case. only you bottom can the we I mean given And you and the proven even was manage want time a not customers there Yes, I to scale the people can the could or that X%. lot do then line. when top-line had if was of our grow

we a will we few in And for generation. that's So us we've to out are really last what do. help think confident put I'm what the place years,

We because to the got but are And the think our we because our and next we And are we that. the of position retail. manage do mindset in technology short-term, of of to shift and we've of opportunity building out company generation and for will long-term. the progress omni-channel for culture because the that

Brett Biggs

that believe these and we've it way But that they opportunity planned that them, time. grow will come over we things if the way -- operating together, does give for margin to

Doug McMillon

now. some things are those And of scaling

talk we started, ago. just years as So other getting services things, advertising fulfillment X or some of and months about ago we were these and XX

that I I weren't is years? X old. which of pickup business, or scale right. Judith X some huge like that mean, X numbers like, was think Four in about is years covering PhonePe the only is really, much a it reached today, years we talking ago, even

anything our traction grow that I I we at they're situation, look like smaller, can It's Steph. So speculative and ability to there seems things. we feel them don't that these the We've got apparent when in it. flywheel, just on Thanks, is our just execute. but execute

Dan Binder

Thanks, Steph.

Let's after go and Robbie then Ohmes that. with Lasser to Michael next UBS

Michael. unmute, to have You

Doug McMillon

on days, Michael, we uttered you're we but these hear most you, can phrase see mute. can't The you.

Michael Lasser

going my you growth Sorry. they Walmart you much that investments allow that taking connect that of a this as follow-up whereas this mean even lot have year as improving especially that were of for how argue they're And and Thanks bit deeply up to sales investments X% and and Thank making to I for on time XX% eCommerce this keep to to do part guidance to the more in maintain you. necessary this a investments the time top proactive, business instance, you because line expect changing just Can environment? U.S. does year. to environment stable For in generate time you're the different. these be questions. the expecting, that the XX% this, as a able is to wage to yield could around are why? expect this one with you U.S., time more as growth return you're you have last the last around, little might a Then generate a

Doug McMillon

Yes.

pay you're about those work investment I think one asking Walmart way wage of the today and the are feeling off and we're attitude people different a different, XXX,XXX will you're do today, we talking is to them that if in way. about your

We are our and to investments correspond think making to I are adapt, asking the in them associates we that.

to of I'm with shave jobs inability at from expect a out those thought It do of mind. able high I So help about I I our worried level them razor by Michael's a am that not do investments. to productivity. help the little could of will a sorry, really sales. retention. will nice I'm distracted and their It lack return get with

Michael Lasser

tough. are Times Times are tough.

Doug McMillon

a Michael. can We Like, on you razors app, the some. sell lot get of

Michael Lasser

there. will I be

Doug McMillon

lot a I know there's … of

Brett Biggs

a We haven't seen of while. some in you

Michael Lasser

together that’s Yes, when forward I person. look in we are to --

Doug McMillon

virtually. to It's challenge all this do a

of just relates X% to it a As with the have we growth, eCommerce. lot opportunity

adding and as are good marketplace not achieve I need it the ultimately We Things are We scaling we customers investment mean, have we are nicely. potential adding is to fulfillment the are serve and assortment, we must. capacity its at as yet. brands. service more scaling, well,

the important translate growth, making with we are that right So, with customers which to market going growth, but most we not building market think just should upside, now, one in other one the have is investments create relationships our are yes, keeping stores. which up into I that's on the including the exceeding

Brett Biggs

are And than International one about most now that we the the thing total they had are the in, too, last you markets higher part growth for that think Michael, if several the over years. we've markets

as helps So that that well.

Michael Lasser

follow-up this you My sales outset, question investments. is this sizable same the happening you of making a with that to trying lot uncertainty at project as year. And is, pointed these is at out there time are the

uncertainty little that outsized the your bottom uncertainty profitability about in top P&L, line there lower result do top room such is year? see less is is line, you think with your your or bit if to should there's with the So, this you than we deleverage a there line for while preserve expect,

Doug McMillon

Yes, there's as I got levers some the or and all year room, the and can of can. coming But beyond as that the one down -- I and we year. as talk business this about we anything, these Michael we harms Brett We've wouldn't best time, to slows it go will margin them. through all the strategy manage do gross is want

you mostly we we think we And the that. of -- aimed to aimed coming be few year what next XX decisions But we done we years. to next months; not we’ve can going job see. and are fine describing are sight at we this of the lose talking are about won't I today best the they're at are the

on stay things. will We of it relates to track as those kinds

Dan Binder

Thank you, Michael.

Doug McMillon

Thanks, Michael.

Dan Binder

We Bank next Sigman. will go to of Robbie Ohmes Seth with America and then

Robert Ohmes

guys. you me? Sorry, Can hear

Doug McMillon

Hey, Robbie, we are good.

Robert Ohmes

guys about well, I TikTok situation platform could you, couple about don't more you dollar in I into will I can then see you And than Is weave hoping maybe -- situation. social the where come in there separate the go maybe within future, for the question. Doug. will little hoping can I Great. know you was ad question that you. And media I questions guess -- I anything it answer that from? with of fits talk if my a -- share Great to for world learned was my near where multibillion does I What Walmart A it this from was ask the Brett separate expecting. after that us? confidence business you you

Doug McMillon

Yes.

can and growth aggressive a all Robbie, to a the with want when of That's unique for going customer the for clutter connect the We've relates way stores. those our into from program customer an got in we reporting app. things if detract up the program. as think digital in haven't that that And for not item buy is and to our advertising it, proposition and of a they're the physical store available just it advertising, is the we looking have of unique experience ads opportunity We our that you and growth. to I preserve our And And eCommerce that investors got to site us related because show decides we've store, a our can advertising we been you. we come provide road down to the experience. to there. dots

marketplace And a we is So, to from exciting. behaving of are the to China going partner different we around in as growth before, opportunity as to been in commerce, What’s including relates how on But that assets people connect traction to as to got ton world with an there. ways think to we nice manage commerce. the it people different we've mentioned social just with learn dots are commerce drive there's have happening I the a It's of that up. a social that happened to. driven can doesn't stream I even customer like other job that advertising components and want a front-end of bringing quick, we by of to result experience. approach sometimes that great, The XXX,XXX I because the think of simple that's make tried do best seamless, we attention experience to fast, we events an in when kind and live fulfillment because think lack TikTok up people better attracted or

first, to work flow that it and months, commerce back terms we see a advertising, traction customer In -- that partnership I will more a we of in are from and will first, number where these one will Walmart the XX some relates is you including team as our tertiary is look needs monetization that. will we and all thing. X a and of social us we be, see be learning expect playing so cases that’s the on and think simple to from be and will role serve back There think retailer can data that other just secondary think months, we to it and the And out the mindset that, the and what first I advertising partnership to in connection will will things that. commerce I

Robert Ohmes

driving I business, the the fiscal helpful. across US just take did and transaction a automation business in the take That's look per versus they improve then alternative then look this Yes. year of -- you're you about profit and U.S previous transactions then the is how or making, the could you more away and that maybe eCommerce Brett, if Thanks. did lot streams was hoping -- of And at And profitability do that last investments revenue these years? growth that digital? profitability eCommerce

Brett Biggs

to look Yes, look several which the a over of few Robbie, we at look when is part eCommerce U.S to very they're are the you has it's we investments experience. we've or -- contribution the business would improve. answer and we to just a is the P&L. that, that's to customer things drive all the there yes to talked drive to things why side, integrated there that's at revenue, that's so from years improved about that -- need the and reduced there at continued we and But drive investments about they When years, of great fulfills It's past I that. several what's the all on the ship that ship, that year, service asked, before margin, the better U.S to all variable losses that logistics -- these cost seen And they're eCommerce there of cost of customer reason they're we've of efficiencies, pieces improved eCommerce these in what are big this also just business. as P&L, there's it's

Doug McMillon

big growth The marketplace was deal a too. in

Brett Biggs

Yes.

Doug McMillon

I an on components of merchandising mix but but just our omni-channel contribution then we back whole It's to thing. that category mix the it I doing should Robbie, reminiscent we of Today, managed think kind made as helps same made and we helpful blend got not And things mix, items to the how items we’ve begin talking scaled, margins about structure are better The now. they to and marketplace that's we higher that managed. mean, had which how with which margins on. lower manage people party first relates the thing it's are mix I we profit together. learned when manage is gives the XP, management, channel be only all XP across, we one opportunity and manage approach we with,

Brett Biggs

Thanks, Robbie.

Dan Binder

Thanks one just Robbie. We've got question. more time for

Markets. BMO Capital Bania with to go Kelly will We

Doug McMillon

Kelly. Hi,

Kelly Bania

hear you me, Can okay? Thanks. Hi.

Doug McMillon

We can.

Kelly Bania

Perfect.

or from a dollar you guess, U.S that? that $X.X year. be Just I eCommerce, Could maybe following billion it EBIT to When are about mature eCommerce reaching billion maybe a in was be losses question magnitude you then about eCommerce contributed maybe third, that Robbie's the globally, at about billion to think us about think or what XX% understand think on of question. was U.S But And a a you margins Brett, marketplace, years, you as so little services And help advertising, another more? next maybe Can XX% part growth. financial eCommerce wanted is margins, could there? we $XXX bit bit about what that the I little talked can longer-term to you talk like sounds ask just the in it over eCommerce to few growth, this little U.S bit $X.X as look separate? improvement it those

Brett Biggs

P&L. lot look Kelly. Walmart was way last to -- improvement, helped lot at general particularly billion pieces that. U.S., in about, the increase in a as a there questions, lot so many company with profitability was costs in globally costs, the there's sales in talking over Gross improvement you as COVID. mix, a $X X.X% Doug There the all merchandise rates year down Yes, related this a increased We that with obviously, of margin in is those comp as of

parse we losses doing improve what business all year. eCommerce little eCommerce of did the the a even becoming part more out But a are And significantly to the is in integrated tough it's So during of stores. that.

remarks years I years global what after could eCommerce billion and we couple a next said about few As we billion in in forward, $XXX going $XXX over think expected see that. my had that is the

were total to I important. and comment made potentially total. the of these serves pieces know profitability we one, business each of and is -- wouldn't going each be to of mean, these looking profitable be into and time. about go grow the the I levers, serves we that's the do back didn't long-term. any different about they if we to businesses of certainly a how think what are But the it businesses, All we we think and purpose a Hence, business at But we these going that purpose going different a at and and

So algorithm. operating there goes into that change having and that's time, can that's time, how that that. than it we our all get that sales, financial growth, we algorithm. great line flexibility think do about X% But top grow have that over to change of the faster How this can it income over we I think having

Dan Binder

Kelly. Thanks,

wraps session. So that first Q&A up our

then to take and Thank break resume XX we We are going a program. you. brief minute our will

John Furner

associates. store I've in our in our people corporate morning. drivers, centers, me what's fulfillment let about more by start technologists Good the distribution the our been and never our happening And U.S. talk associates, proud and to team, thanking

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core ChannelAdvisor Judith's natural they're it's what is the with huge business flywheel, health of sheets mattress accessories; things And categories reach international top and financial continues and and grow. be mattress multiplying Shopify, because platform with sellers a looking more effect on one mattress now buy for because and store. on of more who are customers to the We've to dramatically pipeline. monetizing are assets, our that plan put a we trusted, furniture with centers likely cover services Walmart.com accelerate example, Walmart.com And a this sellers. are lot of got a fit to emphasis strategic Walmart the our to part outside our it wellness can and expands it a We team through Health on or And on We on and with we marketplace Our partnerships the buy business, have opportunity offer mentioned PayPal. just to U.S. customers new we've and across in a an to working And seen product business. of continues services. marketplace in like business and XX profit-driving for momentum customers. we at and building world-class adjacent a I

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to you. fast of making fast, have are we doing we authentic it in to world today making we're and healthy move and way. a friction are And the to see a We life people but way a we move we you easier that Walmart. fast. investments But full need strategic we're that's for moving Thank hope in in

Judith McKenna

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Guilherme Loureiro

and you, good everyone. Thank morning, Judith,

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Judith McKenna

Gui, thank you.

to we team XXXX. the you excited flywheel I'm We through are doing, see as are go proud even and more what your of momentum gain and

both concept Now to in that are customers a Flipkart PhonePe different years and and helping risen with And India. just when in economic its the to building billion they Big emerged strong get a in PhonePe flywheel part I unchanged. to of a adoption a learning the we challenges we to as partial in of of businesses during right each give said Flipkart of recent than And lot. support event. completed the has spoke country. impressed Flipkart transactions. million XXX business health I are own payment why saw is success. stronger since the of X.X ecosystem will across doing board accelerating that more XXXX. last $X customers specifics ones Billions confident of period serve our would businesses. that we you've remain independence. than have the Flipkart, crisis. to our am be to entered come and monthly about to XXXX reached Flipkart are and the into we more in each its invested all And we have PhonePe as against you with X-day And have relevant digital fundamentals Day ever the delivered and I customer-centric there It's India, as they're a than the forms And heard work and ecosystems, expectations. others recently each India. we PhonePe directors see business And but Both in more earlier, and its consistently they're I separate continue PhonePe invested are milestone back spin-off growth we while that just central anywhere over to

to this first to in We is priorities business So Kalyan drive and And customers to a our because to leading of morning the the that agility platform core and share But full resilience growth appliances India the credit India's and same electronics a the and who had more resilient. GMV up deliver a and the Flipkart's recognizing be fashion, look the position double earlier with let This in half eCommerce with surprising in delivering strengthened were rebounded to year. bundled to a tech in businesses. by This QX expanding was serving is the me team roughly growth this with about continue to impacted Flipkart suite I at growth exited with team at to strong of shutdown is And role momentum, a his opportunity GMV the first XX-day is of positioned heart. year. more promising play year. time, the growing market business services, they categories win that Flipkart. innovating the that to CEO, pivot caught and a like Flipkart able believe that they not and a its the and future. rapidly company wholesale how That capabilities of us at and ad-tech is agility eCommerce Kalyan building is customers.

makes special? one in India retail, to promising love you Kalyan, the most I world market the words from growth own So remains in of markets so but would the for hear your what

Kalyan Krishnamurthy

billion there quickly also of young of India are vision the of of I today. population this roughly people. has X.X an that the Government XX% of Digital to digital that just population. want And XXX acknowledge Indians India, today. million total this. has GenZ estimate and millennials the India XXXX, millennials, population By be XX% people young will Judith, are actually enabled is which

a unique digital, combination have market, young. you and of a completely getting big very wealthier So

& will Let was report $XX me the that in eCommerce billion. India $XX the to firm actually looking a to opportunity billion. the years consulting just we quickly is also few just the is That billion by opportunity billion XXXX estimate be India which at is talk an by in eCommerce I that A latest there from about vision. India, the real Digital size $XX today. India $XXX estimate market in result are read a XXXX, of Company back, Bain

Judith McKenna

The X moment? step What But and seeing change ago. it for is behaviors uniquely and we happened, happening really. grown It's that’s has makes I've years it? Flipkart when we invested that what has and that see suited remarkable, loved is so this Flipkart isn't lends could how shifting into that

Kalyan Krishnamurthy

first just give me a Flipkart. let headline on Judith,

Indians product customers XXX categories. We XX Indian for company built across shopping Roughly million listings XXX million are consumers. by a

Flipkart product local is marketplace for India leading the today. innovation. are We in known

commerce just India, is there. Flipkart. shop, this look commerce you Judith, app And see not I one to everything huge Flipkart across you X in at a of the in have general, years from to there innovations years X say, in the several -- last in area. open the When you'll come If last number just would in

languages which We digital the consumer. which some you is get you native just years. in recently which launched today. Flipkart. can last offers which voice-enabled in in of access couple unique the happened also what catalog actually of, the innovated India all shopping, proud searching payments for of talking today receive is innovations, product everything Just the Flipkart and is to five very we the Flipkart for just about. way local products, are quickly, That's Indian very about access, Very products,

done some last are So which Judith. big innovations years, these in few the the we've of

Judith McKenna

just this just to customer. absolutely for fact there? Indian so well, designing is much it's and you're Yes, and the there But platform that as nature a than of I the love the more innovative isn't doing what’s what right more you're though,

Kalyan Krishnamurthy

Judith. Absolutely,

open is this. people what with it's a of the there. in see think world a But behind app, the the app is they things lot enabling when scenes, I products Flipkart all really there of just few an which

First is, talent.

areas if technology We talent actually consumer that, largest talent, in are few in years among global of through the in which Outside continue the be which in look you our at of for a engineering in is Flipkart last and India. talent infrastructure, supply technology so next India top talent India. the best actually sitting chain will the will few into years supply today. Ekart, the chains is just proud of best having investment Actually

Judith McKenna

And That’s you've of it the that you just team those you talk around. Ekart turned -- used and when about me innovation and Flipkart it? isn't been it just has And amazing. integrated things and incredible, reminds areas, way quickly some the how

it you really reacted were year for XX last and that that during you everything. remember them really so stronger in well What for You I was made due you the of year them despite faced and a difference the challenges started finished and actually the to you team? the well. even Many Flipkart shut than to XXXX days pandemic, you

Kalyan Krishnamurthy

Judith. Sure, great a It's question.

great business, in They who employees XXXX. we business employees, in infrastructure education actually safety. invested ecosystem are the and safety investments, once And in It an with While our investments, again, safety. is inspired really on was were and of not our acceleration initiated adoption, And trade-off and this partnerships. this all We about partners was our India. ecosystem it favor just to worked XXXX by but customer ones financial the the all in saw safety. partners not about we heavily of saw the Government

a very pandemic of on on the smaller quite partnerships. other actually it were we ecosystem year beginning that be is, find easier it like quite Flipkart will itself Second partners, beginning difficult clear partners -- the to through, bigger companies in indexed actually will over but in to of this We side pull this. for of this, get the

in to spoke them financially, really wanted. in not way. again invested So partnerships listened they once them, we understood just what and we to We invested actually a big

has we a big absolutely your Flipkart, To was and at years. in So and adoption. shopping we the of the new some year, is people several the insights question, not last that's come acceleration before. of In insights very which of evolving Flipkart it it The core there was the the specific we beginning for saw saw new customer way year customer categories been rapidly. an for partnerships. Customer several up saw were essential trends for emerging the for meaning was

is So once we’ve in consumers that seller the our XXXX. again, make sure right we worked the for partners with selection evolving which to

big another priority. was that So

summarize year we to more when opportunity used our rearchitect and Finally, XXXX employee we a financials. would a to finally, partners, closer to more completely consumers, closer also seller prudent. I our brand, our financially this clustered actually as got

Judith McKenna

And to keeping I think reacted ways. that you great. that's to what was grow do, really long-term different And could company in way myself. watch you Yes, you're the I really is but the and evolve moment fascinating to the in it view needed of couldn't a better what put how

look Flipkart? let's build that about are XXXX in. So your think already you out continue about we to and priorities as growth to thinking What you driving forward are really for now ecosystem

Kalyan Krishnamurthy

the mentioning again, Actually, mentioned I once point before. Judith. just Sure,

years evolving And We customers. loyal which few consumers. eCommerce Flipkart. our insight of to that India last trial an in is good are core the as very listening we’ve consumers the seen to from very, market is list one big at That's

So to proposition have strong for a taken ourselves one loyalty value program. we've how very biggest our on challenges is of the

Flipkart+, one big priority. which very a very loyalty uniquely is is local program So

our as partners grocery to the category million in where proposition, ecosystem. we category want kirana a we something our strengthen roughly is digitally. with especially already in big have very Second is partnering a value Fashion underpenetrated is India,

actually will year going technology be to two next So investment capitalize big opportunity. as areas very forward. and And before, infrastructure we that finally, I on want and mentioned

experimenting more also revenue are more We with and models.

advertising Judith, For Flipkart the in India and I in ahead among our platforms a big, five example, India top Overall, as platform, would us. which today. continuous advertising is investments of big opportunity summarize

course, are up are but Of challenges. for we challenges, the there

Judith McKenna

I'm in and team today. doing the to come. Thank XXXX for you Flipkart to fantastic. sounds that so for everything huge looks been us like. going really and to you about much you And the you've are future It do through what thank joining the years excited

Kalyan Krishnamurthy

for Judith, the partnership. you, Thank

Judith McKenna

Thank you, Kalyan.

We the looking next Indians as to your are online. really progress seeing million XXX forward you bring

rapid to let's The think UPI launched extraordinarily in for when life has growth. and on payments. Now digitization comes vision about to government's really move XXXX you PhonePe. Indian enabled was

of India's remarkable. I for fact, read leader equivalent of is Indians manage their ambition value grow transactions, and now enabling transactions to XX% spend, that their UPI as that money. about inclusion is right market That PhonePe's and GDP. to of build Indians In hundreds year, capabilities we is UPI recently spoke of to Last access PhonePe And allow the growth from millions the phones.

CEO and Co-Founder Sameer, of introduce to PhonePe. excited I'm So

on update innovating for revenue and customers on BXB our also along streams? journey? being platform and new And the developing BXC where business about open So that an focus that talk on is

Sameer Nigam

these It's another XXXX Judith. during the been for was progress most what But Indians stood during you, of testing for year sheer out times. the of PhonePe. significant resilience Thank me

for was national showing together PM help Last to CARES strict true for that. spirit, a raise India and lockdown video to launched money is hundreds Fund. I campaign our while donation Here [Video employees under March, in the worked a the of India short COVID, just PhonePe due Presentation]

national also pharmacies India our small It million shops, solutions helps on in districts building and customized essential on with grocery semi-urban started We scale XX hard store small network. to month to creating across work kiranas set million already X.X jobs more our This India. million a million sales our over the helped from Our than XX added has our discover X,XXX merchant local year, long business across consumer have to small businesses consumers we all donors. resumed discovery we and digitize digital and raise platform of providers. rural businesses and India. payments to heavily service growth the PhonePe target force XX,XXX Last businesses kiranas. launched a Post-lockdown, rural year, and campaign $X offline network merchants app. all chat for other focusing

XXXX. top signed ATMs helped in have launched small petty double ATM these times away merchants business ATMs quick from product of cash that also been having than downloaded a retail million up allows centers We as XX innovations to our PhonePe that instead more XX More than withdrawals miles where to up homes. million in their that PhonePe make business can XXXX ATM, visit X shops service as PhonePe banking consumers app in category are India already. mobile make All app has

than the digital side which have related needs and consumer payments, social shift favor in the On growth consumer essentially lockdowns lifetime now and witnessing more accelerated really Indians own to million in now too, PhonePe. is here reflect has growth. five distancing users, which volumes digital PhonePe payments registered our India of this COVID in XXX every adoption, stay. unprecedented is means one transaction has that

count XXX% transaction year-over-year. up monthly Our is nearly

be XX% monthly in the monthly monetary of billion has positively. the transform product rupee rate obsess lives lean simple with of a continue We very annualized Even very value, every about crossed small $XXX Indian. MAU we power users terms technology million PhonePe, that to a organization building TPV At mark. to trade. Our has and for harnesses scalable XXX crossed innovative healthy customer our run

to applying India's codes users PIN now mutual services hope to over platform. build become our most in has the now I'm category what same of the report are will philosophy XX% We we financial comprehensive country. funds happy the spanning that

proud active leading India's industry of to growing policies India fastest March most metrics, active We users, nearly best payments sold is building and insurance started I'm digital in very to million platform, since having report company key PhonePe across transactions with Back you, XXXX total Today company. InsurTech that vision India's this also TPV. are a X in XXXX. We merchants, Judith.

Judith McKenna

Sameer. doing you, amazing work. team Thank some The are truly

me let International. our finally, key takeaways reemphasize for So

powered profitable portfolio Firstly, the opportunity and changing Walmart. for resources on our are shape the of by local long-term, businesses and sustainable we focusing see is strong markets where greatest we our growth;

Secondly, assets innovation around ecosystem businesses. a footprint or center our of with at move the the reinforcing mutually applies to And win flywheel access future the an International. our matter and across path thanks the Walmart to no to nature global of to International finally, is the Building world. with retail our speed, of is able has customer shape unique the

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Kathryn McLay

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Doug McMillon

Kath. Thanks,

the to everyone our stack. Suresh, our put Now technology. to plan of his stack, our you by and many Technology data meet He capabilities work had been Chief tell and joined our Officer. progress. modernize are know let's I tech our our meeting. Development shared tech at a year's and build to we last talk He Suresh new year Please chance modernize effort income and leading streams. Kumar, about I'm busy. team to him last has

Suresh Kumar

Doug. Thank Absolutely. you,

So approach artificial last and to and machine taking moving year intelligence faster technologies. new advantage we the other our learning, talked developments of in

more enable be with these Now and to speed, technology modern will innovative move Walmart elements become productive.

several innovative level that with in we area modernizing hybrid of stack we fronts. pleased Now made on have and is tech progress our an that for the really are I'm on platform this different Walmart, suited cloud uniquely

in our as out this a we really great first, to expertise modern tech deep Now leaders a We've senior industry. domain more of brought building applications. talent added has start team. we across from the And lot created

latest We Second, infrastructure. our servers, hardware upgrading the software. that's we’ve advantage been aggressively and and of more XX,XXX to us upgraded than take allowing

gigabit And learning we us upgraded is right our this connection. stores allowing Now a more also augmented X,XXX than workloads machine of per bandwidth we to run data demand can X reality, which computer vision to second do, lot and like fiber stores. inside what and

into anything it, to ran cloud. have than out by Sam's a very cloud holiday. talked our experiences analytics allowing the Sam's. us about the in customer than very more And and the the efficient same cloud lastly, And powers in XX,XXX power the this our our customer technology migrated We advanced but manner. past Now is Kath is more in point-of-sale this on and to on And else, eCommerce we move checkout contactless XXX% this that to the we devices. and nearly data run way, doubled rolled we that journeys lake U.S. of ended system up petabytes of down also cloud X.X data building a

the center past to has been year. migration this cloud this efforts really at So our the of modernization

Doug McMillon

the amazing. but some of modernization mid share work of Would benefits and A of those? get all lot actually and worked highlights from some that are team just was to the seeing though stuff. fact good on we've the just the you really That's and it those done. pandemic long-term, of stayed To me you kind It's necessary remotely are during we the for with we things a the schedule assembled now. all described already you

Suresh Kumar

We we when are. absolutely was how the surge most the started. The pandemic volume benefit visible handled

to when started higher rise events. prior rose started and day well anything to holiday volume than holiday every had even running peaks our and our we we level seen it above levels shopping that Now

to Now customers, more because migrating while for the operating the available cloud manner. we efficiently keep seamless could very in lot allowed scale site up to a us and down our could we scale

second, well online the delivering mode. Now, very up turning our to supply scaled X,XXX start stores stores chain fulfillment during orders, holiday. lit into We over in effect,

Doug McMillon

cool. Very

Suresh Kumar

particular whole we only and crunches a customers a deliver could built faster, of find And lowest and not customer. a by to specific deliver we this cost. lot did because huge a because order the business lower fastest of for cost we our that system way, to course, win And customers is for very node also our at do of information to millions to but a pieces this, the a

Doug McMillon

associates it store doing Our enjoyed too.

Suresh Kumar

our Absolutely. And another big benefit store for of using new actually modernization is technologies associates. and

is Now backroom in testing an called associates one out [indiscernible], directs this We've What it this that we John does Sam, new uses augmented natural a mentioned is reality. also and this processing. that very Ask our app started and uses able be time language app of to do only every quickly taken upfront. identify to to to a take are they the scanning and associates case. by to app, what each this had one-third previously needs the And task using complete which

Doug McMillon

That's huge.

Suresh Kumar

illustrates way, the of we the just are of that And by these benefit a the are work examples doing. the few that

customer and become experience. the on We to business are innovating productive with enabling associate speed, more move and we are

Doug McMillon

You things and team did the some in incredible XXXX.

in amazing, of? but supporting proud most eCommerce are what example, For you the surge was

Suresh Kumar

when So, help to to and associates ourselves new customers. found the urgent priorities set a our deliver needing to pandemic of Doug, help hit, we our

VPN What without to our to remotely do skipping allowed So, by XXX%. capabilities scale beat. associates we is for over to our this capabilities corporate XXX%, example, our to videoconferencing us had by enable work a

how our from strategic over options, for COVID-related allowed same the is similarly actually modernization and deliver delivery everything and contactless serve big Now, our efforts, and prescriptions. shopping COVID make to support, innovating features, that during customers, features small, our What we conveniently, customers frontline with on our tech to I'm shopping while launched that team them of at on were business XXX our needed to features speed on to progress our continued to testing, We enable delivered COVID. to time associates. really shop initiatives, proud site safely

Doug McMillon

stood Yes, in tall your XXXX. team

some role. of changing Looking business things a most? quickly are new tech building that the key capabilities forward, we and with we are playing our the are you What excite

Suresh Kumar

customer improve to machine and experience. that us and excited is both transforming learning. it in our be I with our associate helping the doing So continue about efficiency we It's the work business, are

pricing one million this our manage and example built learning of markdown costs. alone good how So, a us in effort And model machine markdowns. the $XX timing to the one we is saved assortment. optimize We

Doug McMillon

Awesome.

Suresh Kumar

Now, further. going we are lot a of course, whole

demand to quantity inventory, We first are the need in and building so we markdowns reduce that both better algorithms the optimize the place. to of forecast even and have to location

we we improving $X our for our effectively. could savings drugs time this facilities the this every customer But accuracy, reject. the costs estate the program. our we now either more system our costs multiple choices. year. have at helps invoice key to strengthen of proposals recommends of out ones approve historical We supplier generics could more Another We data it or where whole real of of our parts, associates dollars on to on day, side thousands invoices recommended maintenance. in We the dimensions, labor recommendations $XX models like offering, One a time. area buy agreements that lot merchandising building added our by of what can review least is accuracy have to does of we hours, example millions of lake And system the improving run and last where while our to pharmacy out and across travel automated to ML agreements use see same same been has so proposal then And be where at analyzed million is and applied we ML increase and top course, it. took it an at time, by in the to resulted cost And improving in and position.

the excited that of the So we about. I've do every but something I'm highlighted that a is areas, applicable and few thing really and that in single potential is power ML

Doug McMillon

too. by Me way. appreciate And the really those savings,

will What focused looking ahead? talk let's you Now, about on be priorities.

Suresh Kumar

last building foundational capabilities, of in unlocking to meeting This to and future about journey the about enable more the for omni shopping become Yes, fashion. it's faster, more was year modernization the work, accelerating go business customers, highly personalized our to in onwards, year the shopping become so innovative, about a going to Doug, productive. be them

content, our start they commerce. to right serving customers want social when consuming start we fact, In

Now, our like of and We serving from customer multiple can our we on on are truly optimize associate we excited on the potential to enable unlock. stuff we all they serve about built we we systems focus stocking, our so to products spend from how do of to that focused that our in customers. and that time. business. the in possible. demand lowest we our is keeping take the we’ve run Really in cost suppliers, merchants fulfilling how helping The everything that to systems for kind on merchandising, art foundation picking, way that can reinvent activities want this get inventory of us counting, And reduce aspects fastest inventory the stock, side, customers, else. Everything have care that time to of focus all our trips the room the to back want making how they building real inventory on of our

move in of more Walmart I lead course, is be as that to disruption. retail role under technology And innovative, technology way said more next as in become beginning, the well to Now, will speed, with enable productive. we see our the Walmart now. And powering

Doug McMillon

covered It sure everything you that for today. attention. Thank We for is. your building. you you thank team momentum your lot Suresh, and a for you're Thank time doing. is the

the customers, Our about are focus is our getting serve. on on more on aggressive. even we And we families excited people,

We team will have execute. we strong, deep and a

a lot of for in a time long benefits come. way company this to strengthen will a that people We

grab include will Judith, Q&A give have come Brett, and like back, that X-minute John, will we all. a coffee to to Thank we would you and Kath. Now, we your and session a a when you legs break stretch

Dan Binder

Thank Q&A you second our session joining for today.

to Just first Cowen. question call we on Yruma from your will unmute from we will we with reminder, go there when Ed Zoom And as please With you. our at a that, go to KeyBanc. Chen Oliver

Oliver Chen

Thank morning. very Good you Hi. much.

and the technology curious role U.S learnings that India be in about in Regarding play the will what leveraging that technology, to computing stores edge are of from applicable and may some there? also about a thinking most how

Doug McMillon

you can comment. do John, want Judith, that maybe off you kick to Yes. and

Judith McKenna

Yes.

there. hi So,

the ecosystem. that how understanding from really building think they're out India leverage is that I

We difference example, are starting flywheel they're for different as a in interesting some albeit joining they're they've the got out of really building together way tech, for got out see platform to things U.S. flywheel They're that that We've described that bits different our building to the making the for John well. the that happening. India the and

out that slightly start but a be Flipkart is to which we're that. about the so our Now, market, U.S., developing Tech able is of business using similar to the in to app, a benefits a helpful Ad to two market to different kind trial just Chile really trial to

is, how to produce a well. The learn first for commercial-grade secondly benefits future have Flipkart but that, tech might from which of course, potentially as Chile them

the broader building a So, things, how tech, a and just how it's we learn lot, approach about not about but they they're as flywheel well. out about

John Furner

and Yes. question. Judith Thanks you. for Thanks, Oliver, good to see the

last edge advantage our and does as using got points computing, And these it's local up we extraordinary for in whether our serve store, customers in real other in we are think with in it answer I few been great X,XXX within being I in to all properties point much advantageous morning. communities picking are XX things just but meaning one community, us think possibilities about country has country. on saying a of that's store, particularly presence so as the and ability of whether Walmart considering the real shopping would XX% that to of your the a local number And up covered this is a up one serve it's all over terms much huge I in the did frame distribution a certainly our so we've of over in ways streams a investments years, supply about in that's core and facilities chain extremely open Now, making. of the year teams about by and And we where the going income communities, the retail population. some the last of our miles this local it's the or we're forward, business

Doug McMillon

pie few year's compute, which Suresh hold app an of relates the focus this pull minutes and about lines to on see of up a our ago Oliver, edge a into imagine that stores the for bandwidth can with because along talked it increasing to future we lot was cases you As what's just the forward. merchandise use

how handhelds have for imagine wearables someday We period can enterprise And need be will ourselves. may to that in may to of use time see a that, to just monetize will we have capacity on we addition other much we excess and example. we of that users for top there

Dan Binder

Thank you, Oliver.

Yruma Ed and will we go that. then Melich Next to Greg to after

Ed Yruma

change guys terms And we do developments seeing then thanks outlines a taking first, as of pickup a layout term. guys Hey, follow-up, versus I some of interesting some items a questions. think how wants talk great guess, fulfillment, you have you your and rough little of eComm? distribution mile change the that of does a the How mix. about kind kind reformulating term the in international the consumer contribution delivered have job and that done profitability about longer longer bit micro are you very for you last in investments, Can step your capabilities.

you. growth of you've higher kind tipped markets? Now into Thank

Doug McMillon

just we we a economically and ago learning what how opportunity were John, pickup those a delivery, other which Asda years, you're unlock off We by But delivery. food from software had U.S., a to U.S is I that couldn't which people we markets, drive on and based we in the productivity in throughs capabilities, their capabilities building and on before advantageous choice to us lot doing to Judith, we from for was cars thought, kick those else they John, now. delivery started, and how for the actually, country U.K large focusing get like and on deliberate great, banks obviously we're on delivery. worthy years for which Asda everything pay to the which made do with really and few the might is drive the it to had pickup and on to saying focus in done focus

John Furner

the that we because it about happened but created really years work really with few all X these that ability are many it that are or the for possible customers a what store, And changes. last Judith, be shop ways, weren't sure that enabling that step if of a and foundation schedule in for within are ago, it's having behavior to at think was attended capabilities Yes, done what or hours customer The I'm were today. pandemic their back temporary, or permanent deliver happening just in and we changed today things year. glad doing the is or what and an some doing I'm in in pickup, the pickup all store, over ways, the even wouldn't

we that's the of businesses. But function volume neighborhoods of about more entire density talked mile density economic deliver and And always just goods. we growth those So the the a is and are excited it about you the an delivery. to range have, and of more last

other a market local, for the One, mentioned MFCs, couple and what's can the it be stores. also helps I'm what including will capacity that sales center. we're then centers. they centers, going of really also You will done broader in serve the done on calling fulfillment fulfillment stores fulfillment reasons. adds to floor, capabilities about capacity. The those increase increased what And areas manage excited be

supply that and automation, last home. together point our up to the So proposition. the and fulfillment the to including delivery down mile to way are centers the of a all the assets exciting really It's with we tying inside chain

Doug McMillon

delivery services we've customers helpful. the pickup fact The more that also new with is attracted and

them try lot Sam's year Kath are once available, Walmart a advantage were take lot that were you've include them weren't in folks of there services capacity. curbside who a that think, and they of to where those Club and this added shopping excited stores the more I

Judith McKenna

Yes.

out So ever we with in year. we kind on grow successfully it Walmart the to I'm then. network a rolled of excited can have June it seen week since and explore perspective, week whole synergies across into the from delivery next how leverage moving

Doug McMillon

of could the think, one it's membership pandemic. building coming I of that into drivers the Sam's take people advantage without the growth, of fact during

Judith McKenna

Maybe the point that on do Mexico. around We John want Spark will making, learning you it pick got, world on which was we're I have from delivered The that the that me in way the build and just to -- starting last-mile the got Canada. platform International we just we piece? delivery. is up in the got by growth

well changes year done this markets its of are portfolio. a growth not well, A International that of are a thing. the and different high this mix, This we’ve So, I just this around capabilities lot building. And as in markets U.S we have. yes, just we think know week. last the is And things that you each universal on International, of closed we is the place the unique that's as Asda in is those and a world more the and pretty focused one deal

excited out how past. businesses higher I'm are with Brett and really think positioning well. to that to So the we future But I to see as you’ve for you see the building than also contribute And the seen continue in us said, Walmart as overall. will growing sales

have interesting China, footprint with continue and strength we have we back to in as So but as also they unique India, been, the priority Canada, got, global Mexico, well. that Africa see it's and be and coming an Chile always markets

Dan Binder

you. Thank

with Evercore Next we will go to Greg ISI. Melich

Greg. mute, are on You

Greg Melich

well is Sorry about things. two in doing guess, Hope everyone that. weather I there. the

to growing margin Doug, I probably a the guess really levers if beyond, again is we almost second going sure. it's I Brett, pick XXXX for for John, excited. question, and look profit you my not see two think get the should into And out everybody, what, to there? initiatives forward then were to you or all First one CFO to hear And great

at to ultimately change? now, And much you of your your billion look XP? $XX And At own Amazon? do billion need how you scale, as business drivers get or how business? assets to will mix think and like need really you point scale the is have in much $XXX you to Thank to own what you you. have $XXX that eCommerce it If would billion, that trucks drivers of

Brett Biggs

to of we to than I and it's marketplace, talking when we There's are now, different at International merchandise Greg. want from business, And to picked glad like the there's general the X maybe past. look now, driving is my years just as why do company. a actually that mentioned have then back about can what that many quite asked because areas and there. and in very what's wasn't there's track membership. and the place income about, profit I'm up just at case. Sam's as years the to years just take get the Club you Greg, years so significant X the if new I'm with to to and I lot a a initiatives have company you several be. where from growing lot question ago, also and there's of from optionality that go be excited company, growth financially, optimistic X ways on excitement, the revenue John's we things we go sales we from so the Judith many a other important again, ways area, but to get being so are doesn't significantly, one that's that been the going on more now, want streams It And

it's just opens for I it us. -- up opportunities think

John Furner

what come so, about bought And you Asda years grocery last X and over as We the copy the to those our together it the about, which your the Division started XX equation, accelerated we it's in added and chains app, Walmart.com call the had years back we of we formula out for to XXX Greg, when question mix magic Xs and merchants merchant And businesses created or app general a year. and that supercenter. work, on does to on X me Division think exciting reminds Orange we talked mix have app. and investments together it And we've were and the had sort up stores and to see play we we of a of then stores was merchandise if mix, our ago then which really we team. we -- same got the fantastic this

store are group resetting position and category business customer we've XP our have they experience a fulfilled be strong to commerce think business, XP best was channels sellers, mix channels fulfilled the all a it's channels. the everything starting of very that how the being about and XP our got which blur. are by and we Now items of then the customer across the year last from to or in that's about the a able and or across group all lines to offering by us And those really categories

I’ve a are been are great of can with is enabling to platform meeting suppliers and things been and it them, growing just unfortunately we so associates. calls, meetings is some so capabilities us customer. we sellers And sellers sellers have we are like that see all of really from for business, as all and spending from but services think customers those is a on our And it that demand need I’ve Walmart can't together, listening like and and we it's time sure having making we largest XP accelerating. fulfillment our about a we the for and be Zoom they that my team

addition to across channels of So, look team is this really categories the -- we they team to in be able our as ability to mix for our serve exciting forward.

Doug McMillon

John, maybe a bit on little more last-mile.

arrangements Spark, and platform, independent current has which been contractor growing. own includes our Our scaling

relationships of type that have do work. this with similar also We others

or You've with had that's experiments density drones on things, locally experience last on is AV how going there you a some more different see trying forward? around some here with vehicle going now mile anything running

John Furner

Yes.

customer For what be able way life. the on the going a their the is we’ve customer fulfill sure. to for the years is to way needs the or deliver have to that and is Look, really on they and and number it boss want We've do said delivery customer depends what's one. to done

will are platform down neighborhood that have customers to delivery, delivering that a to taking some their the locally. looking for straight of are saw runs neighborhood for for who in have really have the are fulfillment of that neighborhoods are where great about by and density experiment, need we aerial homes. sellers be centers, are We else's got partners in who experimenting to be stock And to, of to people's or able in stores, is in sort with mentioned a important. And people to birthday density all our which a number addition, to got will customers is Walmart, week and you FedEx a here fulfillment content local thinking same including need on gift that that includes come items need whether So have like we from stay who that Doug, centers of mans we drones. from platform it's run then someone inspired for online, they or or delivered they

done have year communities. tests We this COVID in

and from to first been launch stores some able We with the places to have new sold deliver items units drones.

is, And as going Greg, we answer keep we're learning the go. so, I think to

know ready to scale. are Some of these things we

year, talked Spark enables from healthy up others And is behalf mark is the platform about like fulfillment really exciting. a and have We a and it's which drive over businesses, seven people Club behalf in Sam's times last last about blend it's our service providers our now, which to of of week the on future. mile deliveries million which X.X centers,

Doug McMillon

those. private fleet with use when do Greg, our There we there move. are we like to loads want times to we parties are move that third

a I hybrid think, here. there'll approach be

assets others whole of with mix lot entire relationships network. to Some build out the of a our and

Dan Binder

Thanks, Greg.

go Next then to Chuck Morgan Haskett, Grom with that. we and after Horvers with J.P. to Chris Gordon will

Chuck Grom

of Good questions me. morning. Great, Thanks, everyone. Couple from

for billion? some pent-up the how to how think what's also this And for, rate costs run second on what I'm the perspective, then size do related, last then the relative business do are John, morning? up you well the were planning also areas and guidance see wage your this First, announced this category COVID that would that could Brett, curious of morning, you curious billion, headwind And year you the from are Thanks. costs a which of around that $X do we you year embedded areas going to and $X provided think year release demand? you you

Brett Biggs

Good Chuck. you. Yes. to I kick see will off,

are guidance So you you a what a is level. view to up what pull give bit we this best we do we given can little to tried we to morning, we said higher know with trying

the different into some could to need do vaccines happen guidance, lot of the there's how get that. that year and in know do that will we of are and over the individual time, take how continue we As cleaning that for doing the a quickly maintenance continue that we down quickly we things pieces and

there of billion, that rate and is out of one-time a bonuses the $X run obviously there number is a in in So then was that number there.

looking wages, you and further up, likely sales the have could breaking that we run that and go we at morning then trying scenario of rate looking to and variables what this that that's gave that, just like So, rate to morning. are we obviously on are forward, that, most to and something this taking to it's that on we not run details down is we and going one do profit we just prepared getting one the morning. the a at do do in go it this down feel into But have all of cause

Doug McMillon

one get Probably the the need we we vaccinated. need country to number done thing is get to

Brett Biggs

Yes.

Doug McMillon

how effort of and can lot time we into So, there's a that attention help -- effort. scale and

John, playing little talk categories. maybe you might vaccinations about a and week, you XX think about are the role last I we bit states talk we're as

John Furner

really sure. of sourcing they and great to safety Brett, ways, year X,XXX enormous And, from do was of now and in did we it the extraordinary Yes, for to plexiglass year move just job, mask leads Chuck, Well, a number locations. did mountains want committed vaccinations. was putting and good in so team prioritizing you. lift and a serving being thank last an associate to job and cleaning to our I great got communities today safety really which They everything and customer safety up we've like see

just pharmacies in in swings the here of and that conditions XX,XXX in are do off very took a that got on to across million buying of question we able very, end February, economy and with Chuck, we've $XX mix, the country pretty to time. over participate. so, a maybe year, number in wild And country. the per help do right And with struggled we of for all the the couple the the at really can and to out-of-stocks up think of for to pharmacists sooner and in on resulted direction. better months really the to merchandise a in close is saw it million, help grocery we're and the us of to the quarter in general for last part was gets vaccinated moving month surges. are it to impacts into high April want stock to and the your get they We people more every got ready country ready because and we've to capacity, well $XX the the us had help that back because second which we and then it big OTC, year stayed Last run phase up stock March, some back we

happened short think X.X% quarter level they're made a and and were the the together, was not impact. on open the closed for of Thanksgiving had, more We Day really just the year. difference. would had probably we proud they at Brett, put and a while Growth closed We that what's billion day that reflecting So at I just the they have few grow able $XXX also -- were an we this it on being hours, last beat that were of the plan up that strong quarter. last only that quarter, to was but team that plan

Brett Biggs

Yes.

John Furner

if share But last balanced. for in November, quarter, the had decision close quarter, business, who quarter, saw food we associates off. nice The business merchandise some December But time I our which the a make general consumable mix and great needed in a same stronger. again, in and pretty the make same also was this and Health was decision gains would had to I'd merchandise. great I wellness had general

last So, we what what back a -- categories points the probably balanced year. different saw in quarter year mix happened than late was more of the of

Dan Binder

Chuck. Thanks,

at then Paul go the Chris JPMorgan. Lejuez will we to with Next Horvers Citi. And

Chris Horvers

Thanks. Good for the and all thanks morning, information.

So, a PhonePe. follow-up and Brett, have first, a on I'll then for question

X% for the sort Is thinking are be in year, algorithm expansion message could historically, growth U.S. a earnings grower. you bigger type with type So, sales thinking the today potential of And this plus margin beyond the and like high sales that single-digit a how long-term? more Walmart we earnings about comp? you've been the contract picture, more faster mid that single-digit about

Brett Biggs

Chris. Good see. Yes, to

line what want That's we helps can. U.S higher inside International, do. and innovation, that As also in to growth having think the size the But you're can US, you seeing making you're get top still as part that that of capital the well. pretty having quickly business about growth that being the of in given automation, we as that, business to the and X% now mix a number to forward fulfillment, sure of we're the putting in we not grow said the good in with a lot big as going of a U.S the International

morning, lot ways from faster that. do investors. On the said as expect the over I what of sales and There different expect we in side, to a operating as you profit to should that’s income this is grow us time

stronger, that well growing gross things the gets and margin I as businesses these is new margin the look little well. on better we helps evolving going of general a believe higher different our helps that us margin businesses, contribution have margin that mix One out and will merchandise getting forward pieces as in mixes, eCommerce higher business

little a So to been few gives it's to operating the has in come years. sales, all opportunity together these than income that than faster grow the been different which pieces starting us we've past

Chris Horvers

on PhonePe. there as to you globally about process talk you Can your as to an other strategy? the scale on follow-up back thought And Are some longer-term Understood. thinking of to learnings take markets. it about opportunity what this the then a are

And see long-term longer Thank core a as so term commitment, monetization or do fuel that business. to over thus reinvest the provides you in a the it's this you.

Judith McKenna

PhonePe Listen, it's -- Hi, I an I were Doug, old when to ourselves, in Chris. talking business last its years this time is just amazing X reminding It's we own billion were right. just and and year, billion doing the at wowed was talking I'm I you, -- them X.X And sorry, of a now doing billion. million it all X.X transactions X.X was about -- could a month. fact say

think you that it's I the just and growing. scale the that tells way

is well. manage, we're grow We looks them excited That that really are about for through strategy, This supporting and strategy, future on that the like. and send, as continuing long-term spend, PhonePe what which have about year payment. remarkable in India. It's a in thought all overall India digital its really and and on, digital in year consolidated a been they particularly, adoption forms has stepped been where on

focus like much trying about did the the on value. moment, to growth for they’re the I to focused So potential advising the what markets two which can can with do so we At were we’ve helping is spinoff Flipkart maximize their that they’re India. is us, market. they what want this for them. dedicated we thing to is Mexico. business really which very They the both them think set the Indian future and think the is helps The we having capital both and also interesting on like, us looks a But year them that moment partial opportunities. did up we for And long-term, reason PhonePe amazing in build at

to will it which best that them at able platform, goes is aligns been the for the the own that still Like this. now what heard as business, an today, of to what shouldn't Ad it's we and we accretive as one areas mutual the Now, future And have this actually are that we to PhonePe insurance through year funds in of are many new they overlook got team things moment. Tech for you’ve management such is them. look did But like. consistently ESOP monetizing, as a and such phase create growth them the and their

So but, will we are very learnings yes, lot much in long-term them, world. the for around be there interested the a of

Doug McMillon

to a financial I Mexico, India. the financial other business relationship the U.S., great create a obviously use deepen integral is services in opportunities opportunity we've think And Canada, different commerce had services many in to got and We've and it's so the core. with focused store-centric And in future places. like. taken been which than different but cases so on more it's And we've the U.S. money, PhonePe done what the to primarily, be well more want on India we the it. save customers elaborate over because we've look time, might will John, you a approach

John Furner

Yes.

with a announced we FinTech So, start-up Capital. Ribbit

We are about that. excited really

possible which scale. to like fast heard connect. because lot we're Things your they are doors it financial sellers, is the but services And for opens and create scale. people in trusting better like having environment confident ways their some customers, a really looking I great really an omni-channel the services, the has the and marketplace wellbeing. a ad and where products possible all I clinics forward are food, us wellness sizable the of of businesses the about that's of these get for have ability you Walmart. customers' room from new our of areas about, of in of for including of got a and in where this that great think think to we with all a not really some pay others, to along to people it's And growing also have that's health have looking in buy at path a to have Walmart, And talked business, underpinning because why business center suppliers, their pay and that other question, way, path question, a ultimately, for platform you ultimately to you creatively ways just just only we've to we putting us

to on services reach buy and was And need that to customers it to it sellers at great to to Media referred previously we we was three from reason reach Group center, together. suppliers. to decided because Walmart need have business Connect, customer the our which they suppliers as sellers with So that the groups, rename business, those parties can need Walmart get a and together where connects

Dan Binder

Thanks, Chris.

will go Citi. at to Paul we Next Lejuez

Paul Lejuez

the drivers if guys. lift there has perspective be in in a in thanks I'm separately, you attention from of you And XXXX seats top line could on you're of Lots guys. ticket it, curious perspective, eComm in Hey, SG&A the what Do I'm e-Comm sorry a recent sales then thinking but wages tends XXXX been of And XXXX. on Thanks, how wage about store expect years. over see top you the in on piece to did talk comment equation, you see line areas. from but pressure a what I where about terms just curious versus missed those profitability traffic versus in if perspective. you some

John Furner

things unpack. a to few in there Probably

our associates career that with XXXX. XX% of opportunities, really let's Walmart. as And because couple hourly hourly looked years ladder. started the changed as XX% the proud in specifically, as fact provide of of we've I managers stores associate the has an happened been really Chris, start And the in maybe, So for start we almost -- we've associates. of And the proud changed. in way customer that has career at, we what's last really step and seen work the back we're shops at the years over

pickup talking years now U.S., day. XXXX, was shop, pilot not or only sizable Judith was it's back how in so, every about starting a part we X ago So of but experiment. what the when Doug around do probably that It's a customer

critical the look a What work and back the customers' groups groups. to I'll second, at to our then and referring that but just the we next is And about as it's to business. a years digital this four the step the the talk looked into and includes work to dispense announcement broke which store two inventory invest really drivers. delivery most in of as maintaining that's it the the store, morning big we in or we're So pickup and omni and really took store business, to few levels, stocking business, dispensing cars and

way different we've the proud long phase, position. We time. of and in the the to We're a which amount supply shopper business, order is inventory in-store customers had dispense extreme day we stocks customer. who And in it. out of in-stock the stay it the comes our surges every going a year, to of last had chain. would that going each right so got to picker When us year parts where where had that's a include And and put an trying are times year, for to the and go. But to we ahead times stock stores we of the availability, in be position for we together had the to of of availability, left And other in of were up pressure

And time of for career invest them. so it's right and the to in map for a great groups associates those us create

the but to they only or opportunities, stay being regional future store being work us, want or of see including So businesses. that not a manager, with one a they and the CEO being to come operator,

we're an week, accomplish they is how doing trying Walmart it's So starts at what sure are, what who clear we're make and invest that associate in their to really a to this way opportunities it.

Doug McMillon

of them is where place it's generally every going speaking for the and if a market obviously of. the it's day. up us in wages disposable every good they operate, we're first working good for more inflation have us also good they country are in States. Many associates Wage are United our going is for there think up, If us income we

eCommerce, wages on to it pace things to get go see up. all do right So And you relates Brett, want as comment the do want to got that? just considered. We to we

Brett Biggs

Yes.

that's losses it's in reduced said, direction. year integrated significantly eCommerce definitely right And business. we this business. in been the part of such as We moving So an the our

give growth We not be sales. faster without laid that. out can going grow But tough imagine that morning, on the forward to you it. this it guidance did miss than progress profit would operating we with not algorithm income in continued did and You that,

give some of -- So that that progress should will assume continue. you we indication

Doug McMillon

We P&L as just omni it an these days … think of

Brett Biggs

Yes.

Doug McMillon

than more even … ever.

pieces step are job we on to we're And more the to we Brett's cadence shared be we've to gas, as got conservative. won't it sight think through a today, that So work decide we're and different we've eComm holistically. -- of. to where at And nice going a variables. lose I before, the going The P&L done where look all manage explaining we it we financials these

stores great got generally contribution business, sales, speaking, visibility about category, are GMV eComm and track customer profit a anymore. we costs. in still the obviously fixed this into by will We holistic that. not omni relationship thinking the We've But pulls together. as silos And in

Dan Binder

our session. That's Q&A We to conclude Thanks, do Paul. going questions. your appreciate of all good Doug?

Doug McMillon

close so pay time view. Yes, thank most and you mean, the company. the I I'll many to you appreciate saying are by of we Hopefully, know of aligned our attention with you. and just you

where to manage this these positive have long-term, few to short-term. times able to quarters past a We been going upside. we've we the been for have are the surprise building are the There

We are work. to go to going

execute. We are going to

based us accountable guys as the actual to going on and for us results. give long-term we and can hold the and you are We manage build the short-term feedback go

of you So back back and back we the this lot and bit stores of around little them open get build all. will our warmer part a to of get there. we world get Thank and work. customers see in will a temperature from Hopefully, a

Brett Biggs

Thanks, everybody.

Dan Binder

program. you. our Thank conclude will That

Walmart (WMT) 20 Feb 212021 Q4 Earnings call transcript