BENTONVILLE, Ark., May 15 -- Wal-Mart Stores, Inc. (NYSE: WMT) today reported record sales and earnings for the quarter ended Apr. 30, 2007. Net sales for the first quarter of fiscal year 2008 were $85.387 billion, an increase of 8.3 percent over the first quarter of fiscal year 2007. Income from continuing operations for the quarter was $2.826 billion, an increase of 6.2 percent from $2.660 billion in the first quarter of fiscal year 2007.
Earnings per share from continuing operations were $0.68, up from $0.64 per share in the same prior year quarter.
Net Sales
Net sales were as follows (dollars in billions):
Three Months Ended
Apr. 30
Percent
2007 2006 Change
Net Sales:
Wal-Mart Stores $55.437 $52.499 5.6%
Sam's Club 10.323 9.775 5.6%
International 19.627 16.561 18.5%
Total Company $85.387 $78.835 8.3%
"While these are record sales and earnings, we feel there was an opportunity to have done better," said Lee Scott, Wal-Mart Stores, Inc. president and chief executive officer. "Delivering on our mission -- saving people money so they can live better -- is more important than ever around the world. The worldwide organization is focused on improving sales and returns."
Operating Income
Operating income, which is defined as income before net interest expense, income taxes, unallocated corporate overhead, minority interest and discontinued operations, was as follows (dollars in billions):
Three Months Ended
Apr. 30
Percent
2007 2006 Change
Operating Income:
Wal-Mart Stores $3.927 $3.858 1.8%
Sam's Club 0.363 0.303 19.8%
International 0.903 0.757 19.3%
The Wal-Mart Stores and Sam's Club segments' operating income includes the favorable impact of an excise tax refund on prior merchandise phone card sales of $46 million and $39 million, and a charge for certain litigation of $73 million and $10 million, respectively.
Beginning with the first quarter of fiscal 2008, the above measurement of segment operating income has been changed to be consistent with certain changes to internal management reporting. The result of the new measurement criteria is to charge certain direct segment costs to the appropriate segments that were previously retained and managed as corporate overhead costs. As a result, all prior year measurements of segment profits have been restated for comparative purposes.
Comparable Store Sales
The Company reports comparable store sales for this earnings release based on the calendar months in the quarter which ended Apr. 30, 2007. Comparable store sales for the United States were as follows:
Without Fuel With Fuel Fuel Impact
Three Months Ended Three Months Ended Three Months Ended
Apr. 30 Apr. 30 Apr. 30
2007 2006 2007 2006 2007 2006
Wal-Mart Stores -0.1% 3.8% -0.1% 3.8% 0.0% 0.0%
Sam's Club 4.7% 4.3% 4.1% 4.8% -0.6% 0.5%
Total U.S. 0.6% 3.8% 0.6% 3.9% 0.0% 0.1%
Guidance
For the second quarter of fiscal 2008, the Company estimates the comparable store sales increase in the United States to be between 1 and 2 percent.
The Company estimates earnings per share from continuing operations for the second quarter of fiscal 2008 to come in between $0.75 and $0.79.
After this earnings release has been furnished to the SEC, a pre-recorded call offering additional comments on the quarter will be available to all investors. Callers may listen to this call by dialing 203-369-1090. The information included in this release and the pre-recorded phone call will be available in the investor information area on the Company's Web site at http://www.walmartstores.com/Investors.
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 common stock is listed on the New York Stock Exchange under the symbol WMT.
More information about Wal-Mart can be found by visiting http://www.walmartstores.com. Online merchandise sales are available at http://www.walmart.com and http://www.samsclub.com.
This release contains statements as to the Company's estimate of its comparable store sales for the second quarter of fiscal year 2008 and its estimate of its earnings per share from continuing operations for the second quarter of fiscal year 2008 that Wal-Mart believes are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, and are intended to enjoy the protection of the safe harbor for forward-looking statements provided by that act. These forward-looking statements are subject to risks, uncertainties and other factors, domestically and internationally, including, the cost of goods, competitive pressures, geopolitical conditions, inflation, consumer spending patterns and debt levels, currency exchange fluctuations, trade restrictions, changes in tariff and freight rates, changes in the costs of gasoline, diesel fuel, other energy, transportation, utilities, labor and health care, accident costs, casualty and other insurance costs, interest rate fluctuations, capital market conditions, weather conditions, storm-related damage to the Company's facilities, regulatory matters and other risks. The Company discusses certain of these factors more fully in its additional filings with the SEC, including its last annual report on Form 10-K filed with the SEC, and this release should be read in conjunction with that annual report on Form 10-K, together with all of the Company's other filings, including current reports on Form 8-K, made with the SEC through the date of this release. The Company urges you to consider all of these risks, uncertainties and other factors carefully in evaluating the forward-looking statements contained in this release. As a result of these matters, changes in facts, assumptions not being realized or other circumstances, the Company's actual results may differ materially from the expected results discussed in the forward-looking statements contained in this release. The forward-looking statements made in this release are made only as of the date of this release, and the Company undertakes no obligation to update them to reflect subsequent events or circumstances.
WAL-MART STORES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Amounts in millions except per share data)
SUBJECT TO RECLASSIFICATION Three Months Ended
Apr. 30
2007 2006
Revenues:
Net sales $85,387 $78,835
Membership and other income 1,023 841
86,410 79,676
Costs and expenses:
Cost of sales 65,311 60,237
Operating, selling, general and
administrative expenses 16,249 14,944
Operating income 4,850 4,495
Interest:
Debt 406 367
Capital leases 69 69
Interest income (83) (68)
Interest, net 392 368
Income from continuing operations
before income taxes and minority interest 4,458 4,127
Provision for income taxes 1,532 1,388
Income from continuing operations
before minority interest 2,926 2,739
Minority interest (100) (79)
Income from continuing operations 2,826 2,660
Discontinued operations, net of tax -- (45)
Net income $2,826 $2,615
Net income per common share:
Basic income per share from
continuing operations $0.69 $0.64
Basic loss per share from
discontinued operations -- (0.01)
Basic net income per share $0.69 $0.63
Diluted income per share from
continuing operations $0.68 $0.64
Diluted loss per share from
discontinued operations -- (0.01)
Diluted net income per share $0.68 $0.63
Weighted-average number of common
shares:
Basic 4,122 4,167
Diluted 4,128 4,170
WAL-MART STORES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Amounts in millions)
SUBJECT TO RECLASSIFICATION Apr. 30 Jan. 31, Apr. 30
2007 2007 2006
ASSETS
Current assets:
Cash and cash equivalents $6,563 $7,373 $5,690
Receivables 3,300 2,840 2,430
Inventories 35,200 33,685 31,900
Prepaid expenses and other 2,892 2,690 2,885
Current assets of discontinued
operations -- -- 2,557
Total current assets 47,955 46,588 45,462
Property and equipment, at cost 112,972 109,798 98,633
Less accumulated depreciation (25,713) (24,408) (21,988)
Property and equipment, net 87,259 85,390 76,645
Property under capital leases 5,445 5,392 5,552
Less accumulated amortization (2,420) (2,342) (2,197)
Property under capital leases, net 3,025 3,050 3,355
Goodwill 14,585 13,759 12,807
Other assets and deferred charges 2,598 2,406 2,216
Total assets $155,422 $151,193 $140,485
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Commercial paper $4,627 $2,570 $3,653
Accounts payable 27,562 28,090 25,115
Dividends Payable 3,088 -- 2,304
Accrued liabilities 13,407 14,675 12,602
Accrued income taxes 1,558 706 1,969
Long-term debt due within one year 4,212 5,428 5,528
Obligations under capital leases due
within one year 246 285 239
Current liabilities of discontinued
operations -- -- 587
Total current liabilities 54,700 51,754 51,997
Long-term debt 29,567 27,222 25,036
Long-term obligations under capital
leases 3,548 3,513 3,920
Deferred income taxes and other 5,426 4,971 4,678
Minority interest 2,270 2,160 1,540
Commitments and contingencies
Shareholders' equity:
Common stock and capital in excess of
par value 3,284 3,247 3,070
Retained earnings 53,956 55,818 49,020
Accumulated other comprehensive
income 2,671 2,508 1,224
Total shareholders' equity 59,911 61,573 53,314
Total liabilities and shareholders'
equity $155,422 $151,193 $140,485
WAL-MART STORES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Amounts in millions)
Three Months Ended
SUBJECT TO RECLASSIFICATION Apr. 30,
2007 2006
Cash flows from operating activities:
Net income $2,826 $2,615
Loss from discontinued operations,
net of tax -- 45
Income from continuing operations 2,826 2,660
Adjustments to reconcile income from
continuing operations to net cash
provided by operating activities:
Depreciation and amortization 1,488 1,294
Other 470 (99)
Changes in certain assets and
liabilities, net of effects of
acquisitions:
Decrease in accounts receivable 62 219
(Increase) decrease in inventories (1,280) 259
Decrease in accounts payable (1,115) (442)
Decrease in accrued liabilities (604) (103)
Net cash provided by operating
activities of continuing operations 1,847 3,788
Net cash used in operating activities
of discontinued operations -- (48)
Net cash provided by operating activities 1,847 3,740
Cash flows from investing activities:
Payments for property and equipment (3,157) (3,210)
Proceeds from disposal of property
and equipment 170 257
Investment in international
operations, net of cash acquired (466) (68)
Other investing activities 11 67
Net cash used in investing activities
of continuing operations (3,442) (2,954)
Net cash used in investing activities
of discontinued operations -- (9)
Net cash used in investing activities (3,442) (2,963)
Cash flows from financing activities:
Increase (decrease) in commercial paper 1,988 (112)
Proceeds from issuance of long-term debt 3,170 1,284
Dividends paid (908) (698)
Payment of long-term debt (2,232) (1,758)
Purchase of Company stock (943) --
Other financing activities (276) (86)
Net cash provided by (used in)
financing activities 799 (1,370)
Effect of exchange rates on cash (14) 37
Net decrease in cash and cash equivalents (810) (556)
Cash and cash equivalents at
beginning of year (1) 7,373 6,414
Cash and cash equivalents at end of
year (2) $6,563 $5,858
(1) Includes cash and cash equivalents of discontinued operations of $221
million at Jan. 31, 2007.
(2) Includes cash and cash equivalents of discontinued operations of $168
million at Apr. 30, 2006.
SOURCE Wal-Mart Stores, Inc.
-0- 05/15/2007
/CONTACT: investor relations, +1-479-273-8446, or Carol Schumacher,
+1-479-277-1498, or Pauline Mohler, +1-479-277-9558, or media relations, John
Simley, +1-800-331-0085, or Pre-recorded Conference Call, +1-203-369-1090, all
of Wal-Mart Stores, Inc./
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/Web site: http://www.walmartstores.com
http://www.walmart.com
http://www.samsclub.com /
(WMT)
CO: Wal-Mart Stores, Inc.
ST: Arkansas
IN: FOD REA SUP
SU: ERN ERP CCA
CC-AH
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5028 05/15/2007 06:21 EDT http://www.prnewswire.com
