International remains the key growth driver for Walmart

20 May '11

4 min read

Walmart International net sales included a $1.3 billion currency exchange rate benefit for the quarter ended April 30, 2011. On a constant currency basis, Walmart International net sales were up 6.2 percent for the first quarter. Mexico, China and Chile had the strongest comp sales growth, and the highest increases in year-over-year net sales for the first quarter.

Walmart International reported operating income that included a currency exchange rate benefit of $49 million for the first quarter. On a constant currency basis, operating income fell 3.3 percent for the first quarter. Due to discrete items in the first quarter, Walmart International's operating expenses grew faster than sales.

Sam's Club operating income for the first quarter increased 7.0 percent. Excluding fuel, operating income for the first quarter was up 6.3 percent, compared to last year's first quarter. Sam's Club, excluding fuel, reduced operating expenses by 17 basis points as a percentage of sales.

“We are monitoring the economic environment carefully, as significant changes in gas prices and inflation during the quarter will influence our actual performance,” said Bill Simon, Walmart U.S. president and chief executive officer. “We continue to focus on delivering EDLP across the store.”

“Our second quarter is under way and we expect our strong sales momentum to continue across grocery, home and apparel,” said Brian Cornell, Sam's Club president and chief executive officer.

Wal-Mart Stores Inc

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