3-to-1 stock split to support associate ownership

To: All Walmart associates
From: Doug McMillon, President and CEO
Date: January 30, 2024
RE: 3-to-1 stock split to support associate ownership

Editor’s Note: For more information about this news, you can find frequently asked questions here

After Walmart became publicly traded in 1970, Sam said the decision to go public “turned the company loose to grow.” Just 800 shareholders bought into the initial public offering. Among those early believers in Walmart’s purpose and ability to grow were our associates and customers. They believed we would be successful, and they wanted to be part of it.

Sam wanted all our associates to have the opportunity to create wealth for their families, and we still want that. Today, we have millions of shareholders who are investing their dollars in Walmart because of their belief in our ability to grow. And I am proud that more than 400,000 associates participate in the Associate Stock Purchase Plan (ASPP) today. These associates share in the performance of the company. As a reminder, the company puts in 15% on top of every dollar that you contribute, up to the first $1,800 each year, which means you start out with a positive return on the dollars you invest. Walmart creates many opportunities for us, as associates, and owning shares is one more way to take advantage of those opportunities.

Over time, as our company has grown, our stock price has gone up — which is good — but it has also become more expensive to acquire. We’ve reached the point where we believe that more people could choose to own our stock and benefit from our company’s success if the per-share price were at a lower price point. It feels better to purchase a whole share instead of a fraction of a share.

So, our board of directors has approved a 3-to-1 stock split, effective Feb. 23, for those who hold shares on Feb. 22. To illustrate what this means using today’s closing share price, if you own one share of Walmart stock today at $165.59, then after the split you would have three shares, each worth $55.20.

Sam believed we should keep the share price in a range where it felt accessible to all of our associates. A share price over $100 may feel out of reach to some. So, Sam decided to split the stock nine times during his lifetime. We also did it twice after he passed away, in 1993 and 1999, which is the last time we did it. We’re excited to continue this legacy today.

We’re confident in our future, and I appreciate all you do.

The Huddle: We’re in it to Win it
Doug McMillon joins John Furner on The Huddle to share what splitting Walmart’s stock for the first time since 1999 means for associates.
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