Seth Sigman

Richard attributed the gap to ~25bps FX plus strong international and SRS results; Ann-Marie noted Canada and Mexico both out-comped the company and SRS comped above the company average in all verticals.

Richard said Q3 started consistent with Q2 demand but kept the range, citing volatility, cost pressure and frozen housing, and noted the extremes become less likely as the year progresses.

Ted highlighted Pro outperformance vs DIY and that complex purchase occasions were the highest-comping Pro segment, demonstrating capability build-out is gaining traction.

Ted was candid that H2 improvement is driven by easier comps from normalized store activity, not improved underlying demand.

Billy attributed transaction decline strictly to storm impact. Said it's too early to assess tariff-driven price elasticity given multiple dynamics over past 60-90 days.

Billy and Ted clarified big ticket strength reflects individual high-value items like appliances and power tools, plus Pro initiative share gains, not a leading indicator for large remodel projects.

Ted said a couple markets showed slight housing softening but no associated sales impact. Weather is the dominant factor in regional performance this time of year.

Ted said HD is well past demand destruction concerns. Customer with $110K avg income and 80% homeownership is among strongest in economy. Watching energy and food but gas prices declining.

Richard pointed back to 2023 investor conference framework: normalized market = 3-4% top line growth, flat gross margin, operating expense leverage, mid-to-high single digit EPS growth.

Richard credited supply chain productivity, merchant initiatives, and 18 months of consecutive shrink improvement as offsets to SRS margin mix pressure.

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Stewart confirmed the raise passes through the beat and lower share count, walked through the ~$0.39 Q2 benefit bridge, and said lower tariff rates (~12.5% vs 20% assumed) are being absorbed by consumables mix and by protecting price against inflation.

Mike framed the refunds as accelerating existing initiatives (assortment, signage, marketing) plus the 40th anniversary dollar price points; Stewart said no real return was baked in given competitive price reinvestment and SG&A-heavy spend that builds momentum rather than immediate benefit.

Mike cited the 200bps two-year traffic acceleration, anniversarying pricing actions and value positioning in tougher times as confidence drivers.

Stewart explained the only changed assumption was longer-lasting higher fuel; outlined three potential upsides from oil, tariffs and refund reinvestment.

Creedon framed current traffic decline as more muted (down 1% vs 4% in 2022) and expected shorter duration versus break-the-dollar period, citing more strategic pricing approach this time. Restickering now behind them.

Glendinning split segment vs corporate SG&A. Segment: cycling $100M stickering, implementing new workforce management software, targeting very small leverage or flat on underlying basis. Corporate: continuing to drive down toward 2% of sales by FY2028, will see absolute leverage.

Creedon declined to break out specific multi-price lift but confirmed higher baskets in multi-price stores. Glendinning added hardware example, $1.25 hammers didn't sell, $5 hammers can't stay in stock.

Creedon explained narrowing gap driven by 1.0/2.0 improvement, not 3.0 weakness. Confirmed longer multi-price tenure correlates with stronger comp performance.

Glendinning confirmed first-round tariffs embedded in gross margin outlook, second round excluded. Noted modest freight benefit and offsetting factors in SG&A from prior-year liability charges and higher depreciation.

Davis quantified offsets to the raised freight benefit: hurricane-related costs of $0.02-$0.03 from markdowns and store restoration, plus additional balance sheet accruals and inventory markdowns taken to address below-plan sales. Confirmed guidance reflects all puts and takes across the business.

Brandon deferred specifics to the Q3 and Q4 calls, reiterating a commitment to reinvest refund benefits in customer-facing actions that reinforce the value proposition.

Brandon cited the tariff refund and credit revenue favorability from loss reserves as gross margin factors, and flagged fuel and transportation pressure as the big second-half item, expected to be more elevated as new cost layers from the first half turn through.

Brandon attributed ticket moderation to Q1 seasonal mix toward smaller spring projects. Big ticket still positive over 2%. Tariff environment managed with IEEPA, Section 122/232 actions, country diversification. Expecting Section 301 developments.

Brandon noted ADG is fully exposed to new home construction, FBM is 50-50 and showing strength on commercial side with data center and stadium contracts. Synergies on procurement progressing well. Marvin framed the $250B TAM opportunity with 12M new homes needed by 2033.

Brandon noted $1B PPI split evenly between SG&A and gross margin enables margin expansion on soft sales. Tariff ramp in Q3/Q4 with wrap into first half of FY26.

Brandon attributed Q3 gross margin expansion to lapping storm pressure, credit portfolio outperformance, and SKU rationalization sell-through benefits.

Brandon confirmed no macro assumption change, with second half momentum driven by Total Home strategy initiatives offset by ~100bps hurricane lap in Q3 and Q4.

Marvin confirmed geographic variation was exclusively weather-driven and that trends in May are consistent with guidance. Brandon noted 50bps of hurricane benefit in Q1.

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Donny confirmed ~15bps of reinvestment into SG&A, notably marketing, with essentially flat SG&A delivering leverage.

Donny confirmed the raise was roughly half Q1 outperformance and half a lower ~24.5% tax rate, and called the outlook prudent given macro uncertainty.

CFO detailed capital allocation priorities: fortress balance sheet, investment-grade rating, high-return projects, dividend, share repurchases when appropriate. Redeemed $1.7B in senior notes in 2025. Share repurchase program restart contemplated in 2027 per long-term framework. Continued AP leverage expected but less than 2025.

CEO quantified 70%+ incrementality, larger baskets suggesting stock-up vs fill-in behavior, and 70%+ of deliveries in under one hour. CFO confirmed sales and profit accretive.

CFO confirmed incentive comp headwind should normalize exiting 2025, with ongoing work to mitigate SG&A deleverage through simplification, efficiency, and CapEx optimization.

CEO explained linkage between inventory, shrink, and damages. CFO noted 3bp improvement in damages and confirmed 40bp long-term opportunity from financial framework.

CEO acknowledged the math adds up to more than 6-7% but framed the target as a conservative anchor. Did not directly address specific offsets or drags.

Dilts identified shrink as the biggest gross margin opportunity, expecting continued tailwind in Q4 and into 2025. Emphasized the long tail of shrink improvement taking time to fully show in financial statements through inventory counts. Reiterated goal of reaching pre-pandemic shrink levels.

Daniele said the Mega Hub lift has been consistent over time, driving the target increase toward 300, with acceleration when a Mega Hub attaches to a satellite network.

Jackson expects more favorable elasticity as consumers lap tariff inflation (ticket up 9% on a two-year stack) and reiterated the industry is disciplined on pricing.

Jamere said SG&A per store now normalized at 3% growth; productivity initiatives and expense management driving results, no expected reacceleration.

Philip noted mix between discretionary, maintenance, and failure has been stable. Industry is inelastic with most spend being break-fix; expects stability to continue.

Management reported broad-based share gains everywhere, not just where competitor closed. Attributed success primarily to own initiatives.

Management attributed shrink to growing business activity and new DC ramp, expects pressure to abate in Q4 with tough Q3 comparison behind.

Guggina pointed to broad-based grocery share gains with strong unit volume and value investments like the bettergoods brand and a sub-$40 grilling basket driving traffic and units.

Rainey attributed the headline moderation to maximum fair pricing legislation creating ~100bp comp headwind. Guggina noted underlying business growing mid-to-high single digits ex-MFP with script volumes growing. GLP-1 question was not directly addressed.

Rainey said pleased to demonstrate leverage first time in 2 years given e-commerce mix shift. More than 50% of FC volume from automation translating to lower shipping costs down double digits continuing 30% range improvements. Helping e-commerce economics and overall SG&A. Value and convenience not a trade-off at Walmart. Furner said tariff impact less than expected with some relief on key food categories. Only notable pressure in beef from commodity cycle. 7,400 rollbacks with about half in food. McMillon impressed with team managing tariffs holistically through inventory price gaps and fashion mix strength. McLay noted BBD housed in Q3 with OI up 16.9% and lower e-commerce losses than historically. Nicholas said Sam's 2-year stack consistent at 11% despite lapping port strike.

McMillon said advertising and membership growth helps with flexibility when deciding to absorb tariff cost increases. General merchandise business positive which is encouraging for mix. As costs go up units change but that is always true. Customers are quick and understand what is going on making rational trade-offs from one category to next. Ability to manage mix gives a lot of flexibility.

Rainey said VIZIO dilution about 70 basis points in first quarter but expect transaction to begin being accretive next year. Will create new channels to reach customers and enable them to avail themselves of Walmart and Sam's offerings. Furner said VIZIO SmartCast operating system impressive and easy to set up. Excited to distribute advertising for sellers and suppliers through new ways. Starting integration process with bigger plans as teams work together.

John Furner attributed ticket strength to highest food unit growth in several years, positive GM comps despite deflation, and growing digital business on top of stores. Some one-time storm tailwinds acknowledged.