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Walmart first quarter results beat expectations

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Retailer sees momentum in many parts of its business

Walmart first quarter results beat expectations

BENTONVILLE, Ark. — Walmart reported better-than-expected results for the first quarter, with earnings-per-share and comp-store-sales figures that exceeded the company’s guidance.

Walmart’s earnings per share (EPS) for the quarter were 98 cents.  According to Thomson Reuters I/B/E/S, analysts had estimated the company’s EPS would come in at 88 cents.

Comparable store sales for Walmart U.S. increased 1%, the company said, marking the seventh consecutive quarter of growth in that measure. Store traffic was up for the sixth consecutive quarter, increasing 1.5%. Neighborhood Market comp sales increased about 7.1%, the company said, and customer experience scores continued to improve.

“We are pleased to see the U.S. comp result, strong performance outside the U.S., membership trends in Sam’s Club and EPS results versus guidance,” Walmart president and chief executive officer Doug McMillon said in a statement. “In addition, we are focused on building the e- commerce capabilities we need to drive growth to a higher level and deliver the seamless shopping experience for customers they desire. Another highlight is the improved inventory position that contributed to strong cash flow performance. We’re off to a good start for the year.”

Net sales at Walmart International reached $28.1 billion. Excluding the effects of currency fluctuation, net sales were $31.6 billion, an increase of 4.3%, and operating income increased 22%.

On a constant currency basis, Walmart’s total revenue for the quarter was $119.4 billion, an increase of 4.0%.

“We are proud of the overall results in the first quarter, and there is momentum in many parts of the business. Based on our views of the global operating environment, and assuming currency exchange rates remain at current levels, we expect second quarter fiscal 2017 earnings per share to range between $0.95 and $1.08,” said executive vice president and CFO Brett Biggs. “Additionally, we expect comp sales for Walmart U.S. to be up about 1%, and Sam’s Club, without fuel, to be slightly positive for the 13-week period ending July 29.”




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