Walmart Sales, Earnings Up for Q1
Wal-Mart Stores Inc. reported net sales for the first quarter of fiscal year 2013 were $112.3 billion, an increase of 8.6 percent from $103.4 billion in the first quarter last year.
Walmart U.S. comparable store sales rose 2.6 percent for the quarter. Diluted earnings per share for Q1 were $1.09, versus 98 cents for the year-ago period.
“We are very pleased that Walmart delivered earnings and comparable sales above guidance for the first quarter. Despite a negative impact from currency, we grew sales and operating profit over last year,” said Mike Duke, Walmart president and CEO. “Our overall performance reflects the success of Walmart’s business model: driving the productivity loop, leveraging expenses and investing in price leadership. We believe that the momentum throughout our business positions us very well for the rest of the year.”
Duke continued: “In a highly competitive retail environment, Walmart U.S. is increasing price separation across categories and driving increased traffic to both the grocery and general merchandise areas of our stores. … Walmart U.S. also grew operating income faster than sales this quarter. Sam’s Club is off to a great start this year, with continued strength in traffic and ticket.” Net sales for Sam's Club, excluding fuel, grew to $12.1 billion, an increase of 7.1 percent from last year's first quarter results. Sam's membership income for the first quarter increased 2.0 percent over last year.
Also showing strong Q1 growth, Walmart International had operating income that grew faster than sales, increasing more than 20 percent, Duke noted. “We’re sharing best practices on global business processes to improve inventory management and labor scheduling to maximize product availability on the shelf. Our ability to continually find ways to reduce expenses and improve associate productivity means we can pass on those savings to customers.”