Wal-Mart Beats Expectations With Across-the-board Sales Strength
by May 17, 2012 6:55 am 73 views
Fueled by growth in its domestic and overseas operations, Wal-Mart Stores, Inc. posted first quarter profits of $3.74 billion on sales of $112.27 billion and total revenue of $113.02 billion.
Sales were up 8.6% from a year ago with strong performances from U.S. stores, Sam's Club and the Bentonville-based retail giant's international division.
U.S. stores saw a 5.9% increase in sales, Sam's Club sales rose 7.9%, and Walmart International posted a 15% jump in sales. U.S. same-store sales rose 2.6% for the quarter, higher than a 2% forecast.
Net sales for the quarter included a negative currency exchange rate impact of approximately $800 million.
“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, Wal-Mart Stores, Inc. president and CEO. “Our overall performance reflects the success of Walmart’s b
usiness 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.”
The company did not address its recent controversy related to an alleged bribery scandal in Mexico.
“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. That strategy was reflected in the 2.6 percent comp,” said Duke. “Customers count on us for one-stop shopping and our merchandising priorities are aligned with that in mind. Walmart U.S. also grew operating income faster than sales this quarter.
The City Wire, which covers northwest Arkansas news heavily, offers more analysis in this report.