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Wal-Mart leverages operating expenses for Q1
18 May '12
6 min read
“Based on our current trend in performance, along with seasonal impacts and the current economic and sales environment, we expect second quarter fiscal 2013 diluted earnings per share from continuing operations to range between $1.13 and $1.18. This compares to last year's second quarter reported EPS of $1.09,” said Holley. “We are committed to continued sales momentum. Expense leverage will continue to be a key focus as it drives both growth and returns.”
Constant currency consolidated net sales increased by 7.5 percent to $111.2 billion for the quarter.
Walmart International reported net sales of $32.1 billion, including acquisitions of $1.9 billion and negative currency exchange rate fluctuations of approximately $800 million. Therefore, constant currency net sales of $31.0 billion increased 10.9 percent from the prior year. Brazil, Mexico and the U.K. had the strongest overall sales growth for the first quarter.
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.
Consolidated operating income for the first quarter, which includes unallocated corporate overhead, was $6.4 billion, up 8.3 percent from last year. Excluding the $50 million of net pre-tax items realized in last year's first quarter, consolidated operating income was up 9.2 percent. On a constant currency basis, consolidated operating income rose 8.6 percent to $6.4 billion.
Walmart U.S. operating income grew 8.1 percent for the quarter, due primarily to higher sales, aided by our price investment strategy, our continued focus on productivity and expense management. Walmart U.S. leveraged expenses for the quarter.
Walmart International reported operating income that included a negative impact from currency exchange rate fluctuations of $50 million for the first quarter. Constant currency operating income increased to $1.3 billion for the first quarter. Walmart International's operating expenses grew slower than sales.
“Our strategy is clear. Our merchants are focused on increasing sales through the right assortment at the right time and for the lowest price,” said Bill Simon, Walmart U.S. president and chief executive officer. “We will continue to invest in price to lower costs for our customers by enhancing leverage initiatives and managing expenses.”
“Sam's Club provides quality merchandise at the best price in a clean and efficient shopping environment. Clearly, our first quarter results show that this strategy is resonating with members,” said Rosalind Brewer, Sam's Club president and chief executive officer. “We have great summer events planned that will create excitement and drive traffic to the clubs in the second quarter.”
Sam's Club expects comp sales, without fuel, for the current 13-week period, to increase between four percent and six percent. Last year, Sam's Club comp, without fuel, for the second quarter comparable 13-week period rose 5.0 percent.
Constant currency consolidated net sales increased by 7.5 percent to $111.2 billion for the quarter.
Walmart International reported net sales of $32.1 billion, including acquisitions of $1.9 billion and negative currency exchange rate fluctuations of approximately $800 million. Therefore, constant currency net sales of $31.0 billion increased 10.9 percent from the prior year. Brazil, Mexico and the U.K. had the strongest overall sales growth for the first quarter.
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.
Consolidated operating income for the first quarter, which includes unallocated corporate overhead, was $6.4 billion, up 8.3 percent from last year. Excluding the $50 million of net pre-tax items realized in last year's first quarter, consolidated operating income was up 9.2 percent. On a constant currency basis, consolidated operating income rose 8.6 percent to $6.4 billion.
Walmart U.S. operating income grew 8.1 percent for the quarter, due primarily to higher sales, aided by our price investment strategy, our continued focus on productivity and expense management. Walmart U.S. leveraged expenses for the quarter.
Walmart International reported operating income that included a negative impact from currency exchange rate fluctuations of $50 million for the first quarter. Constant currency operating income increased to $1.3 billion for the first quarter. Walmart International's operating expenses grew slower than sales.
“Our strategy is clear. Our merchants are focused on increasing sales through the right assortment at the right time and for the lowest price,” said Bill Simon, Walmart U.S. president and chief executive officer. “We will continue to invest in price to lower costs for our customers by enhancing leverage initiatives and managing expenses.”
“Sam's Club provides quality merchandise at the best price in a clean and efficient shopping environment. Clearly, our first quarter results show that this strategy is resonating with members,” said Rosalind Brewer, Sam's Club president and chief executive officer. “We have great summer events planned that will create excitement and drive traffic to the clubs in the second quarter.”
Sam's Club expects comp sales, without fuel, for the current 13-week period, to increase between four percent and six percent. Last year, Sam's Club comp, without fuel, for the second quarter comparable 13-week period rose 5.0 percent.
Wal-Mart Stores Inc
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