Adjusted EPS Financial Overview slide image

Adjusted EPS Financial Overview

• Gross profit rate +36 bps, without fuel +26 bps Rate increase primarily due to lapping elevated supply chain costs last year LIFO expense $48M Operating expenses as a percentage of net sales +47 bps, without fuel +23 bps • Lower fuel sales negatively affected expense leverage Without fuel, deleverage primarily due to elevated technology investments Membership income +6.3% • Continued strength primarily due to Plus membership growth, acquisitions, and renewals • Membership count and Plus penetration reached all-time highs in the quarter Operating income $458M, -0.4%, without fuel $354M, +5.7% Sam's Club Celebrating 40 years of Member Obsession • LIFO reduced operating income by 10.0% y/y Inventory -6.0% • Better inventory efficiency and merchandise flow as well as a LIFO reserve adjustment
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