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 newsTweets 

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 CEST

--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 [email protected]

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
09:07p WAL MART STORES : 15 charged in South Dakota for trafficking eagles, other prote..
06:48p WAL MART STORES : Several ribbon-cutting ceremonies set this week in Bluffton
04:46p WAL MART STORES : New Wawa, shopping center in Brick? Here are 4 things to know
03:22p WAL MART STORES : Event Celebrates Partnership Protecting Cherry Valley National..
01:33p WAL MART STORES : City of Clearlake steps up enforcement of no trespassing and u..
12:48p WAL MART STORES : Business briefs
12:20p WAL MART STORES : MessageGears Adds Account Management Executive Christopher Bro..
10:06a WAL MART STORES : DaVinci and Million Dollar Baby Co Partner with Carter's
09:10a WAL MART STORES : EHT Walmart to hire 300 employees Egg Harbor Township Walmart ..
08:31a MOBERG PHARMA PUBL : expands retail presence for Dermoplast
More news
Sector news : Supermarkets & Convenience Stores
04:16pDJP. SCHOENFELD ASSET MANAGEMENT LLP P : Form 8.3 - Tesco Plc
09:53aDJTESCO : Investec Bank plc Form 8.5 (EPT/RI) - Tesco Plc
01:24a Labor shortage a stress test for Japan's 24/7 convenience stores
04/24DJJUPITER ASSET MANAGEMENT LTD. JUPITE : Form 8.3 - Tesco Plc
04/24DJDIMENSIONAL FUND ADVISORS LTD. DIMEN : Form 8.3 - Tesco Plc - Ordinary Shares
More sector news : Supermarkets & Convenience Stores
News from SeekingAlpha
04:11p McKesson Remains Undervalued
03:02p Wal-Mart's Shiny New Thing
01:29p AMAZON : Threatened By Kroger?
12:19p 'SAFER' DOW DOGS : Put Visa In Top 3 For Gains, Per April Analyst Targets
07:00a Inflation Data May Be Signaling Relative Inflection Point For Kroger
Advertisement
Financials ($)
Sales 2018 495 100 M
EBIT 2018 22 355 M
Net income 2018 13 088 M
Debt 2018 39 104 M
Yield 2018 2,77%
P/E ratio 2018 17,27
P/E ratio 2019 16,33
EV / Sales 2018 0,54x
EV / Sales 2019 0,53x
Capitalization 226 700 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 INC
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 35
Average target price 74,3 $
Spread / Average Target -0,63%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
C. Douglas McMillon Chief Executive Officer & Director
John Furner President
Gregory B. Penner Non-Executive Chairman
Michael J. Bender Chief Operating Officer-Global eCommerce
Brett M. Biggs Chief Financial Officer & Executive Vice President
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
WAL-MART STORES INC8.19%226 700
ALIMENTATION COUCHE TA..0.16%26 030
CARREFOUR-9.04%17 580
DAIRY FARM INTERNATION..22.32%11 780
WHOLE FOODS MARKET, IN..16.09%11 615
CENCOSUD SA--.--%8 669
More Results