Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nyse  >  Wal-Mart Stores, Inc.    WMT

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector news 

Wal-Mart Stores, Inc. : Wal-Mart 1st-Quarter Net Up 1.1% on Modest Sales Rise

share with twitter share with LinkedIn share with facebook
share via e-mail
0
05/16/2013 | 02:41pm CET

--First quarter earnings were relatively flat

--Same-store U.S. sales fall 1.4%

--Second quarter expected to be challenging

By Karen Talley and Saabira Chaudhuri

Wal-Mart Stores Inc.'s (WMT) fiscal first-quarter earnings rose 1.1% as the world's largest retailer reported slightly stronger revenue amid continued challenges for its lower-income customers.

Same-store sales at namesake U.S. stores fell for the first time in seven quarters amid what the company said was a delay in income tax refund checks, challenging weather conditions, less grocery inflation than expected and the payroll tax increase.

"We didn't have the first quarter performance we wanted as a company," Wal-Mart Chief Executive Mike Duke said on a conference call.

The second quarter may also be a bit rough. Chief Financial Officer Charles Holley said while the company will grow sales faster than expenses this year, the second quarter will be "challenging," given expense pressures in the international and corporate segments. "Expense leverage may not be delivered evenly across the quarters, but we believe that by executing our plans, we will continue to reduce expenses and improve productivity," he said.

U.S. same-store sales showed a 1.4% decline in the fiscal first quarter, when Wal-Mart in February forecast flat comparable-store sales. "When we provided flat comp guidance for the first quarter, we had expected among other things, to recover a reasonable portion of tax refunds, and had also assumed that customers would follow historical spending patterns with these funds," said Wal-Mart U.S. Chief Executive Bill Simon. "This did not materialize as we had anticipated."

Also, weather-sensitive departments including apparel were hurt by cool temperatures, Mr. Simon said.

Same-store sales excluding fuel at its Sam's Club warehouse clubs, meanwhile, edged up 0.2%. Wal-Mart had predicted same-store club sales excluding fuel between flat and up 2%.

Core customers of Wal-Mart generally have been grappling with less money, living paycheck to paycheck. In response, Wal-Mart has made modifications like going with smaller packaging and less expensive products. The retailer also recently announced plans to expand its ecommerce services this summer by placing lockers in stores for customers to pick up items they ordered from the company online.

Despite recent challenges to its core lower-income customers, strong expense-control efforts have helped the company's margins while increased austerity measures in Europe have benefited international sales. Mr. Duke nonetheless said he was "disappointed in our expense control in international."

Ahead of Wal-Mart's report, analysts at Barclays said they are "impressed with the company's disciplined expense management" and pointed to Wal-Mart's "defensive positioning, especially with the macro uncertainty," and its existing strategies being deployed the U.S. segment to improve same-store sales and traffic.

For the quarter, Wal-Mart reported a profit of $3.78 billion, or $1.14 a share, versus $3.74 billion, or $1.09 a share, a year earlier. The company's February forecast called for earnings of $1.11 to $1.16 a share. Analysts expected $1.15 a share.

Revenue rose 1% to $114.19 billion, missing the $116.29 billion expected by analysts polled by Thomson Reuters.

International sales rose 2.9% to $33 billion, or 5.4% on a constant currency basis.

Input costs rose 1%.

Looking ahead, the company forecast earnings of $1.22 to $1.27 a share for its current quarter, below the $1.29 per-share profit currently expected by analysts.

Earlier this week, Wal-Mart declined to sign on to a legally-binding pact meant to prevent disasters like the Bangladesh building collapse that killed more than 1,100 garment workers last month. Instead the retailer unveiled its own plan for improving safety at Bangladesh garment factories, saying it would hire an outside auditor and require factory owners to renovate when needed or risk being removed from its list of authorized factories.

Shares fell 2% to $78.25 in recent premarket trading. The stock has risen 35% in the past 12 months.

Write to Saabira Chaudhuri at saabira.chaudhuri@dowjones.com

Order free Annual Report for Wal-Mart Stores, Inc.

Visit http://djnweurope.ar.wilink.com/?ticker=US9311421039 or call +44 (0)208 391 6028

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on WAL-MART STORES, INC.
09:01a WAL MART STORES : Online Retail Sales Forecast for USA is Subject of New yStats...
07:18a WAL MART STORES : Shop with a Cop helps families, builds bridges
01:39a WAL MART STORES : Mart where 3 died when truck hit store to reopen Sunday
12/03 UKIAH, CA : Yokayo Roots Farm - We grow food! Currently organic veggies, but we&..
12/03 WAL MART STORES : Walmart agrees to $7.5 million settlement in same-sex spouse ...
12/03 CYCLE OF LOVE : Lodi Rotary donates 100 bikes for kids
12/03 WAL MART STORES : Riverfront's wish list will serve people with disabilities
12/03 WAL MART STORES : Coming Up
12/03 WAL MART STORES : Meijer superstore bound for Peoria?
12/03 WAL MART STORES : Vidant Community Calendar
More news
Sector news : Supermarkets & Convenience Stores
12/01DJKROGER : Cuts Full-Year Profit Goal -- Update
12/01 Lower food prices weigh on Kroger's profit forecast
12/01DJKROGER : Cuts Full-Year Profit Goal -- Update
11/24DJWAL MART STORES : Black Friday Sales -- Europe Style
11/24DJHouse GOP Business-Tax Plan Upends U.S. Policy, Bares Corporate Fault Lines
More sector news : Supermarkets & Convenience Stores
News from SeekingAlpha
12/02 All-star list of business leaders named to Trump advisory forum
12/02 Amazon Effectively Eliminates Competition In Another Market
12/02 Wal-Mart's E-Commerce May Click If The Company Can Tick Down Costs From Its B..
12/02 Tracking The Sequoia Fund - Q3 2016 Update
12/02 INSIDE MY PORTFOLIO : What I Hold And Why
Advertisement
Financials ($)
Sales 2017 485 731 M
EBIT 2017 22 807 M
Net income 2017 13 659 M
Debt 2017 42 298 M
Yield 2017 2,81%
P/E ratio 2017 16,04
P/E ratio 2018 16,27
EV / Sales 2017 0,54x
EV / Sales 2018 0,53x
Capitalization 219 250 M
More Financials
Chart WAL-MART STORES, INC.
Duration : Period :
Wal-Mart Stores, Inc. Technical Analysis Chart | WMT | US9311421039 | 4-Traders
Full-screen chart
Technical analysis trends WAL-MART STORES, ...
Short TermMid-TermLong Term
TrendsNeutralNeutralBullish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 31
Average target price 74,3 $
Spread / Average Target 4,8%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
C. Douglas McMillon President, Chief Executive Officer & Director
Gregory B. Penner Non-Executive Chairman
Michael J. Bender Chief Operating Officer-Global eCommerce
Brett M. Biggs Chief Financial Officer & Executive Vice President
Karenann K. Terrell Chief Information Officer & Executive VP
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
WAL-MART STORES, INC.14.89%219 250
ALIMENTATION COUCHE TA..1.07%25 981
CARREFOUR-19.10%17 406
WHOLE FOODS MARKET, IN..-8.18%9 794
DAIRY FARM INTERNATION..18.11%9 614
CENCOSUD SA--.--%8 392
More Results