BENTONVILLE, Ark., Nov. 2 -- Wal-Mart Stores, Inc.
(NYSE: WMT) reported net sales for the four-week and 39-week periods ending
October 27, 2006, and October 28, 2005, respectively, as follows (dollars in
4 Weeks Ended 39 Weeks Ended
10-27-2006 10-28-2005 Change 10-27-2006 10-28-2005 Change
Wal-Mart Stores $16.583 $15.397 7.7% $162.036 $149.557 8.3%
Sam's Club 3.110 3.073 1.2% 30.432 29.087 4.6%
International 6.017 4.554 32.1% 55.354 42.445 30.4%
Total Company $25.710 $23.024 11.7% $247.822 $221.089 12.1%
Comparable store sales for the periods ending October 27, 2006, and October 28, 2005, were as follows:
4 Weeks Ended 39 Weeks Ended
10-27-2006 10-28-2005 10-27-2006 10-28-2005
Wal-Mart Stores 0.3% 4.3% 2.2% 3.5%
Sam's Club 2.0% 4.9% 2.9% 3.6%
Total U.S. 0.5% 4.4% 2.3% 3.5%
The 32.1% increase for the four-week period and the 30.4% increase for the 39-week period in International's net sales include sales from the consolidation of Seiyu and Wal-Mart Central America and the acquisition of 139 units in Southern Brazil. These entities added 17.7 and 18.1 percentage points to the net sales increases in International for the four-week and 39-week periods, respectively.
The Company continues to see a negative impact on comparable store sales from the hurricanes last year and the extensive remodeling program, according to Tom Schoewe, Wal-Mart Stores, Inc. executive vice president and chief financial officer.
"The U.S. Wal-Mart stores that were not impacted by the 2005 hurricanes had comps of approximately 1.7 percent in October," said Schoewe. "Last year, we saw a positive impact on comps from customers who restocked their homes after the hurricanes and this continued through the end of the fiscal year. The impact on comps from hurricanes will continue, but will soften somewhat during the next three months.
"Our remodeling efforts in the Wal-Mart Stores division wrap up during the next two weeks to ensure there is no disruption for our customers during the holiday shopping period," Schoewe explained. "Remodeling activities will begin again in late January and will continue into the next fiscal year."
Trends for the Company's October sales were similar to September, with food and consumables outpacing general merchandise.
"As in September, apparel sales, particularly in women's apparel, were softer than expected," Schoewe said. "We're continuing to work longer term to improve the balance between fashion and core essentials in our stores. Short-term, we're working to maximize holiday opportunities by focusing on leveraging inventory."
Schoewe added that the Company's aggressive "rollback" advertising and marketing programs should reinforce Wal-Mart's price leadership position to customers in the fourth quarter.
"Price rollbacks on key toys that went into effect in mid-October generated significant lift in unit volume," Schoewe explained. "In electronics, another dynamic category for the holiday season, we have several initiatives planned to drive holiday sales. We have expanded our brand offerings, improved our product presentations in the store, reinforced our value pricing and doubled the assortment of accessories."
The Company's pharmacy sales were strong again in October, said Schoewe. Pharmacies in Wal-Mart, Sam's Club and Neighborhood Markets now offer the $4 generics program on 314 generic prescriptions in 27 states.
The German Federal Cartel Office completed its competition review of the sale of Wal-Mart Germany to Metro AG, allowing the Company to close the transaction October 31.
"During the transition period, we appreciate all the hard work of our associates and how they have continued to serve our customers in Germany," added Schoewe.
Comparable store sales in the U.S. for the November four-week period are estimated to be approximately flat.
Comparable store sales that are presented in this release exclude the impact of fuel sales in the Company's Sam's Club segment. Fuel sales impacted the Sam's Club and total U.S. comparable sales figures for the four-week period ending October 27, 2006, by -2.3 and -0.3 percentage points, respectively. Including the impact of fuel sales, the Sam's Club and total U.S. comparable sales figures for the four-week period ending October 27, 2006, would have been -0.3 and 0.2 percent, respectively.
Fuel sales had no impact on the Sam's Club or total U.S. comparable sales figures for the 39-week period. Additional information regarding our comparable store sales can be found at http://www.walmartstores.com/investors .
Wal-Mart's earnings release for the third fiscal quarter is scheduled for Tuesday, November 14, 2006, before the NYSE opens. The dial-in number for the related pre-recorded earnings call is 203-369-1090. The call will be available for 36 hours after quarterly earnings are announced. The information from this pre-recorded phone call also will be available on the Company's website at http://www.walmartstores.com/investors .
As a reminder to the announcement made at the October analysts' and institutional investors' meeting, beginning in fiscal 2008, Wal-Mart will no longer provide a sales estimate on the Saturday following the close of the sales reporting period. The last Saturday sales call will be on February 3, 2007. Wal-Mart will continue to provide additional information on the Company's sales on Retail Thursday, which is the same as most other retailers.
Wal-Mart Stores, Inc. operates Wal-Mart discount stores, supercenters, Neighborhood Markets and Sam's Club locations in the United States. The Company operates in Argentina, Brazil, Canada, China, Costa Rica, El Salvador, Guatemala, Honduras, Japan, Mexico, Nicaragua, Puerto Rico and the United Kingdom. The Company's securities are listed on the New York Stock Exchange and NYSE Arca, formerly the Pacific Stock Exchange, under the symbol WMT. More information about Wal-Mart can be found by visiting http://www.walmartfacts.com . Online merchandise sales are available at http://www.walmart.com .
This release contains statements that Wal-Mart believes are "forward- looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that are intended to enjoy the protection of the safe harbor for forward-looking statements provided by that Act. These forward- looking statements discuss our management's expectations respecting the continuing effect of the 2005 hurricanes on our comp sales, the re-commencement and continuation of our remodeling activities, the effect of various programs on our price leadership in the fourth quarter, and our management's forecast of comparable sales for the November four-week period. These statements are identified by use of the words or phrases "estimate," "will begin," "will continue," "will reinforce," and "will soften" or similar words or phrases in the statement. These forward-looking statements are subject to risks, uncertainties and other factors, domestically and internationally, including consumer spending patterns and debt levels, inflation levels, interest rate fluctuations, fuel prices, weather conditions, competitive pressures, currency exchange fluctuations, trade restrictions, and other risks. We discuss certain of these matters and other risk factors more fully in our filings with the SEC, including our last Annual Report on Form 10-K and our last Quarterly Report on Form 10-Q filed with the SEC.
This release should be read in conjunction with that Annual Report on Form 10-K and Quarterly Report on Form 10-Q and our certain other filings with the SEC through the date of this release. We urge you to consider all of these risks, uncertainties and other factors carefully in evaluating these forward- looking statements. As a result of these and other matters, including changes in facts, assumptions not being realized or other circumstances, the actual results may differ materially from those discussed in the forward-looking statements. The forward-looking statements included in this release are made only as of the date of this report, and we undertake no obligation to update the forward-looking statements to reflect subsequent events or circumstances.
SOURCE Wal-Mart Stores, Inc.
/CONTACT: investors, Investor Relations of Wal-Mart Stores, Inc.,
+1-479-273-8446, or Carol Schumacher, +1-479-277-1498, or Pauline Tureman,
+1-479-277-9558, or media, John Simley, +1-800-331-0085, all of Wal-Mart
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4742 11/02/2006 07:41 EST http://www.prnewswire.com