Wal-Mart Stores Inc. has reported on its financial results for the first quarter (Q1) of fiscal 2012, with income from continuing operations up 3.8 per cent to US$3.4bn, and earnings per share above guidance at US$0.98.
Net sales for the quarter ended 30 April 2011 came in at US$103.4bn, the group revealed, an increase of 4.4 per cent from US$99.1bn in the first quarter last year, including a currency exchange rate benefit of US$1.3bn.
'Walmart is reporting first quarter earnings of from continuing operations of US$0.98 per share, which was above guidance,' said Mike Duke, president and CEO of Wal-Mart Stores Inc. 'This reflects the stability and strength of our global operations.'
At Walmart US, comparable store sales dropped 1.1 per cent through the 13-week period and net sales moved up 6 per cent to US$62.7bn, while Sam's Club sales increased 9.4 per cent to US$12.8bn.
'Walmart US comp sales for the quarter were within our guidance range,' Duke noted. 'We recognise we still have work to do and comp sales growth remains the greatest priority for me and the entire Walmart US team. The good news is that the plan Bill Simon and his team are executing is gaining traction. We're focused on delivering everyday low prices and a wide assortment.'
Walmart International, meanwhile, grew net sales by 11.5 per cent during the first quarter of the year to nearly US$28bn, with all countries except Japan – which was negatively impacted by the devastating earthquake in March – showing sales increases.
'International remains the key growth driver for our company, and the segment is seeing continued growth through a combination of comp sales and new stores,' Duke explained. 'Mexico, China and Chile has the highest percentage sales increases for the first quarter compared to last year.'
Charles Holley, executive vice-president and CFO of Wal-Mart Stores, said that the group expected second quarter earnings per share to range between US$1.05 and US$1.10, compared with US$0.97.
'We are committed to growing sales throughout all our businesses,' said Holley. 'Leverage will continue to be a key focus, as it drives both growth and returns.'
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