Wal-Mart Stores Inc. (NYSE:WMT) Q4 2019 Earnings Conference Call - Final Transcript

Feb 19, 2019 • 08:00 am ET


Wal-Mart Stores Inc. (NYSE:WMT) Q4 2019 Earnings Conference Call - Final Transcript


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Greetings. Welcome to the Walmart Incorporated Fourth Quarter Fiscal Year 2019 Earnings Call and Q&A. At this time, all participants will be in a listen-only mode. A brief question and answer session will follow the formal presentation. (Operator Instructions) Please note, this conference is being recorded.

I'll now turn the conference over to Dan Binder with Investor Relations. Mr. Binder, you may begin.

Dan Binder

Thank you. Good morning, and welcome to Walmart's Fourth Quarter Fiscal 2019 Earnings Call. I'm joined by Doug McMillon, Walmart's President and CEO; and Brett Biggs, Executive Vice President and Chief Financial Officer. In a few moments, Doug and Brett will provide their view on the fourth quarter, our outlook for fiscal year 2020 and discuss progress on our strategic initiatives. That will be followed by our question-and-answer session.

Now before I turn the call over to Doug, let me remind you that today's call is being recorded and will include forward-looking statements. These statements are subject to the risks and uncertainties that could cause actual results to differ materially from these statements. These risks and uncertainties include, but are not limited to the factors identified in our earnings release and in our filings with the SEC.

Please review our press release and accompanying slide presentation for cautionary statement regarding forward-looking statements, as well as our entire Safe Harbor statement and non-GAAP reconciliations on our website at stock.walmart.com.

It is now my pleasure to turn the call over to Doug McMillon.

Doug McMillon

Good morning, everyone, and thanks for joining us today. We're encouraged by our performance for the year, because we believe our customers are noticing our improvements but we continue to see many ways we can serve them better.

We're even more convinced they want us and expect us to bring our stores and eCommerce business together, an additionally connected seamless way that make shopping easier. We experienced a favorable economic environment in the U.S. for much of the year and our associates made a lot happen to draw the strength of our results. Brett will go into more detail on our results shortly.

I am particularly encouraged by our sales results in the quarter. In Q4, Walmart U.S. grew comp sales 4.2% excluding fuel, eCommerce sales increased 43% and we gained market share in key categories such as grocery and toys, according to Nielsen and the NPD Group.

Sam's Club finished the year with another strong quarter with comp sales growth of 5.3% excluding fuel and tobacco. And in international, comps were positive in the majority of our markets. Strong top line results allow us to reiterate the FY 2020 sales and profit guidance we gave in October, even as we landed FY 2019 ahead of where we expected.

We strive to make every day easier for busy families as we increase convenience and save them money and time. Part of our strategy is to build on our existing strengths, such as having a broad assortment including fresh and perishable foods within 10 miles of 90% of