Retail News Breaks Archives
Walmart momentum continues
August 27th, 2012
BENTONVILLE, Ark. – Walmart continued to produce strong results in the second quarter, beating Wall Street’s expectations in the process. Management narrowed and raised its earnings guidance for the full 2013 fiscal year, but its revised projection barely met analysts’ average forecast.
Consolidated net income for the three months ended July 31 rose 5.7% to $4.02 billion, or $1.18 per diluted share, just beating the $1.17-per-share consensus of analysts polled by Thomson Reuters and meeting the high end of management’s May guidance.
Second quarter net sales gained 4.5% to $113.53 billion, despite a negative currency exchange hit from a stronger dollar. On a constant currency basis, consolidated net sales would have risen 4.7% to $113.78 billion. Total comparable-store sales in the United States expanded 2.5%; including the Sam’s Club fuel business, comps advanced 2.4%.
The Walmart U.S. division turned in another strong outing, with comparable-store sales up 2.2%. "We’re pleased with the balanced growth we’re seeing across the box," said Bill Simon, president and chief executive officer of Walmart U.S. "Our focus on assortment and pricing is resonating well and customers are shopping the entire store. Overall, both the grocery and general merchandise business performed well."