Walmart FY 1Q17 Earnings Call Notes

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Doug McMillon

Comp sales +1% in US believe its because of improvement in in store experience

“We’re encouraged by the Walmart U.S. comp and believe it is attributable to real improvement in our store experience. Our customers are giving us positive feedback and I’m seeing it myself on store visits and you can see it in the traffic numbers. We delivered comp sales of 1% in Walmart U.S. due to continuing traffic increases which improved 1.5% this quarter.”

Brett Biggs

E-commerce added 20 bps

“E-commerce contributed approximately 20 basis points to the overall comp. In addition, our Neighborhood Market format also delivered a comp sales increase of approximately 7%. We have good momentum in the business as on a two-year stack basis comp sales for Walmart U.S. were up 2.1%. ”

Saw strength in home. Some improvement in consumer electronics

“We saw strength in general merchandise driven by solid sales growth in hardlines, home and seasonal and apparel. While entertainment continues to be a sales headwind, we did see some improving trends in electronics. Branded drug inflation and script growth drove pharmacy sales while better in-stock levels and a focus on the right assortment drove sales growth in both consumables and OTC.”

Positive comps in China despite challenging macro environment

” Despite a challenging macroeconomic environment, strong performance during Chinese New Year, double-digit growth in gift card loading and continued strengthening of fresh categories led to good sales growth and positive comps. In Brazil, despite ongoing economic challenges, our team is making the right decisions to better position the business for both short- and long term success.”