Retailer Walmart Q3 FY'13 revenues up 1.6%

This quarter included the negative impact of approximately $1.6 billion from currency exchange rate fluctuations. On a constant currency basis,1 net sales would have increased 2.7 percent to $116.2 billion. Membership and other income increased 12.3 percent versus last year. Total revenue was $115.7 billion, an increase of $1.9 billion, or 1.7 percent over last year.

Consolidated net income attributable to Walmart was $3.7 billion, up 2.8 percent. Diluted earnings per share from continuing operations attributable to Walmart were $1.14, a 6.5 percent increase, compared to $1.07 last year, which reflects $0.01 per share from Vips restaurants in Mexico now in discontinued operations. In our financial statements, Vips operating results are presented in discontinued operations, both in the current and prior periods.

Solid earnings performance

"Walmart delivered solid earnings growth that was within our guidance range. We had strong operating income across our segments, with Walmart U.S. growing almost 6 percent, Sam's Club increasing more than 9 percent, and International up 8 percent on a constant currency1 basis," said Mike Duke, Wal-Mart Stores, Inc. president and chief executive officer.

"Our most important priority is growing top line sales, including comp sales," Duke added. "The retail environment, both in stores and online, remains competitive. Walmart has aggressive plans to help our customers enjoy the holiday season, and there is no doubt that we plan to win for our customers and shareholders throughout the holidays."

Leverage

Two years ago, Walmart committed to reduce operating expenses as a percentage of net sales by 100 basis points by fiscal year 2017. Duke said the company remains committed to that goal.

"The company's expense leverage metric improved from last quarter. Walmart U.S. delivered strong expense leverage, and International made good progress on reducing costs in key markets," said Duke. "Throughout the company, we constantly focus on managing our costs so we can provide the low prices our customers count on."

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Walmart