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Company Participants Brett Biggs - EVP and CFO Conference Call Participants Kendall Toscano - BFA Securities Robert Ohms - BFA Securities Robert Ohms Okay, everybody. We have stored the most important and fine for ultimate on the BFA Consumer Conference. I'm Robby Ohms from BFA Global Research. So look, we are without a doubt thrilled to have Brett Biggs, the EVP and CFO of Walmart shops, with us right here today. If you do not know Brett, I'm quite certain maximum of you do. Brett has been with Walmart considering 2000, running in numerous extraordinary roles. He turned into EVP and CFO of Walmart International. He turned into EVP and CFO of Walmart U.S. division. Furthermore, he's additionally labored as each the CFO and later - and SVP of Operations at Sam's Club. Furthermore, he turned into additionally SVP of International Strategy and M&A. So I suppose I - this will be the ultimate time which you seem right here due to the fact I suppose the - as Brett, I suppose, plans to depart the organization on the give up of this monetary 12 months after 22 years. So he goes to be very missed, I'm certain, from Walmart, however certainly through humans like me at BFA. So Kendall and I experience venerated that Brett made it right here today. And I need to thank Mary Brunner for displaying up as properly. Question-and-Answer Session Q - Robert Ohms But I'm going to start out with my first query for Brett, that's are you able to simply stroll us through the drivers to the over 3% comps? And perhaps placed it with inside the context of inflation and different matters that is probably happening for - Brett Biggs Yes, you bet. Yes, thank you for having me. It's a piece surreal to be again in person. I suppose it is being - genuinely it is being multiple years without a doubt considering we have got executed this live. So it is high-quality to be again round humans and answering those questions live, extra than what we are doing over the past couple of years. Yes, I suggest the enterprise, as you'll have visible in Q4, is appearing without a doubt properly throughout the organization, whether this is Sam's U.S., international, I experience high-quality approximately the electricity of the underlying enterprise. The 3% comp that we pointed our is on the pinnacle of a quite massive number. We've delivered an extensive income quantity to the U.S. over the past couple of years. Walmart U.S. is sort of a 15% 2-12 months stack over years. But there is without a doubt more than a few of factors that I suppose get us cushy with that, and a number of this is simply the evolving nature of the enterprise as we are seeing humans glaringly come again in shops. Store visitor's been very sturdy. Our e-trade enterprise has kind of doubled over the past couple of years with those more recent companies that we are additionally spending time and assets and seeing desirable consequences of those. It's all of these matters blended that make us experience desirable approximately the enterprise. We've endured to develop marketplace percentage in meals. So this is continually been a motive force for the organization, in particular with the appearance of the supercenter many, a few years ago. But our GM enterprise is sturdy, and we nevertheless get desirable attachment with the GM basket to meals. So while you reflect inconsideration on all of these matters together, and you have got heard me say some of the times, Robby, approximately our cap potential to drag extraordinary levers, it is all the levers that we had to drag that I suppose makes us experience desirable approximately that steerage and desirable approximately the enterprise. Robert Ohms And inside that, I suppose you keep visitors has remained positive. Is that proper? Brett Biggs Yes. Robert Ohms How a good deal of this is humans returning to shops as opposed to your pickup in shipping persevering with to develop so fast? And perhaps a touch assist on what you are doing proper there. Brett Biggs, Yes, it is a number of each. I suggest definitely went through a time frame in the course of COVID, the early elements of COVID in which humans both could not come with inside the shops or have been deciding on to leave home. And we have got visible a reversal. We noticed a reversal of that ultimate 12 months, probable a touch faster than we'd have predicted that the shop visitors might come again, in particular in elements of the United States of America got here again extra quick than we'd have thought. But the companies that we hold to develop, whether, you stated choose up, shipping, the paintings we are doing in in-home, it is all of those extraordinary approaches that clients can save with us, Local, that I suppose makes a distinction and keeps to get us pinnacle of thoughts with shoppers. That's what we need whilst we communicate approximately OFNI method and our flywheel is whilst clients reflect inconsideration on buying, that Walmart is the primary location that involves thoughts for them, due to the fact they recognize whether I need to move pay at my car, I need to move in the shop, I need to save at home, I can do all that with one organization, and we suppose we are giving the client that today. Robert Ohms And talking of clients, I desired to invite you the - I suggest, you men probable recognize the wider U.S. client higher than anybody. So without a doubt from 3 aspects, the primary is simply what's your client? How are they responding to simply fashionable inflation out there? And perhaps we ought to encompass perhaps fashionable inflation, after which fuelling inflation can be too separate, however connected. How does that traditionally affected your client? And how do you suspect it'll this time? Brett Biggs We recognize from our personal surveys and matters which you read, that definitely inflation is on human's minds. They're noticing it. We stated this in our Q4 profits release. So the client and consumer, we nevertheless experience like is in quite desirable form, and that turned into a part of our steerage that we gave as we got here into these 12 months. The boom in gasoline fees goes to get human's attention, certainly, and I'm certain we're going to communicate approximately that. But Walmart, in case you have a take an observe our client base, we without a doubt span the whole demographics of the United States. We do have an issue of our client that could decrease middle-profits clients, however we without a doubt span the entire breadth. We suppose this is useful to us as an organization that we will do rather properly, like we did with inside the ultimate couple of years. Now we had tailwinds, which we recognize with stimulus and different matters. But whilst the client without a doubt desires us, we are there with decrease fees. And in which fee caps in high-quality form, we are capable of satisfy the desires that they have, and I suppose we will try this higher than all people else. What we have got visible traditionally with gasoline fees once they boom is you generally tend to look a touch bit of consolidation with buying trips. You'll mostly tend to look fewer trips. You'll mostly tend to look in larger baskets, which again, larger baskets are without a doubt our candy spot. And in order clients want us, like they continually do, however perhaps want us a touch extra now, we experience like we are in high-quality form to be there for them. Robert Ohms And the alternative one is simply on stimulus. Can you perhaps remind us what you spot ultimate 12 months in February and March or March, April, whilst this massive stuff hit? And then what is the expectancy while you anniversary it? Brett Biggs Yes. If you remember, we had - I suppose we had our Analyst Meeting mid-February after which proper after that turned into whilst the massive stimulus turned into announced. So without a doubt March and April, we noticed a huge boom in income and working profits, in particular with inside the fashionable products side. And meals, meals remains regular because it continually is, however fashionable products turned into massive. And this is why we have got pointed out first area can be down pretty substantially due to ultimate 12 months. But while you have a take an observe of the 2 years together, we are in a without a doubt sturdy nevertheless 2-12 months stack. Every area proper now feels a touch a bit extraordinary, fairly due to what we are lapping from ultimate 12 months as you went through the stimulus, and then you definitely had COVID rail a touch bit with inside the 2nd area after which glaringly, again, with inside the fourth area ultimate 12 months. And that encouraged shopping for behavior in addition to humans, our personal friends and their cap potential to get to paintings and all of these matters. And in order we undergo the 12 months, we're going to be without a doubt obvious approximately how, what we are seeing in this area in comparison to what we noticed ultimate 12 months.