BENTONVILLE, Ark., May 12 -- Wal-Mart Stores, Inc. (NYSE: WMT) reported record sales and earnings for the first quarter ended April 30, 2005. Net sales for the first quarter were $70.9 billion, an increase of 9.5 percent over the first quarter of fiscal 2005. Net income for the quarter was $2.5 billion, an increase of 13.6 percent from $2.2 billion in the first quarter of fiscal 2005. Earnings per share were $0.58, compared with $0.50 for the prior year first quarter. First quarter earnings in fiscal 2006 were favorably impacted by two items totaling $145 million after tax or $0.03 per share: an increase due to favorable tax resolutions of $77 million and positive legal developments of $68 million after-tax. Excluding these items, earnings per share were $0.55.
Lee Scott, President and CEO, said "We achieved record results in the quarter. Yet with higher gasoline prices and a cooler and wetter spring than normal, we missed our plan. We are making the necessary adjustments and I anticipate better results in the second half of the year."
Net sales were as follows (Dollars in billions):
|Quarter Ended April 30|
Total U.S. comparable sales for the quarter increased 2.9 percent, which is represented by a 2.8 percent comp increase for Wal-Mart Stores and 3.5 percent comp increase for SAM'S CLUB.
Wal-Mart Stores Segment:
For the first quarter, the Wal-Mart Stores segment, including Supercenters, had segment operating income (income before net interest expense, income taxes, unallocated corporate overhead and minority interest) of $3.307 billion, an increase of 6.0 percent compared with $3.121 billion in the first quarter of fiscal 2005.
SAM'S CLUB Segment:
The SAM'S CLUB segment generated segment operating income for the quarter of $295 million, an increase of 10.5 percent compared with $267 million in the first quarter of fiscal 2005.
The International segment had segment operating income of $667 million for the most recent quarter, an increase of 18.5 percent compared with $563 million in the first quarter of fiscal 2005.
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. You may listen to this call by dialing 203-369-1090. The information included in this release and our pre-recorded phone call will be available on our web site at http://www.walmartstores.com, news, news releases, earnings and dividends.
Wal-Mart Stores, Inc. operates Wal-Mart Stores, Supercenters, Neighborhood Markets and SAM'S CLUB locations in the United States. Internationally, the company operates in Argentina, Brazil, Canada, China, Germany, Japan, Mexico, Puerto Rico, South Korea and the United Kingdom. The company's securities are listed on the New York and Pacific stock exchanges 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 a statement as to the view of our Chief Executive Officer regarding anticipated results for the balance of fiscal 2006 that Wal- Mart believes is a "forward-looking statement" within the meaning of the Private Securities Litigation Reform Act of 1995, and intended to enjoy the protection of the safe harbor for forward-looking statements provided by that Act. This forward-looking statement is 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 cost of energy, labor and insurance, accident costs, weather conditions, interest rate fluctuations and other capital market conditions and other risks. We discuss certain of these factors more fully in other of our filings with the SEC, including our 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, and together with all our other filings, including current reports on Form 8-K, made with the SEC through the date of this report. We urge you to consider all of these risks, uncertainties and other factors carefully in evaluating the forward-looking statement contained in this release. As a result of these matters, including changes in facts, assumptions not being realized or other circumstances, our actual results may differ materially from historical results or from anticipated results implied in the forward-looking statement contained in this release. That forward-looking statement is made only as of the date of this report and we undertake no obligation to update it to reflect subsequent events or circumstances.
WAL-MART STORES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED) AMOUNTS IN MILLIONS EXCEPT PER SHARE DATA
|Three Months Ended April 30|
|Other income, net||71,680||65,443|
|Costs and expenses:|
|Cost of sales||54,571||49,969|
|Operating, selling and general and administrative expenses||13,168||11,869|
|Income before income taxes and minority interest||3,471||3,397|
|Provision for income taxes||1,212||1,189|
|Income before minority interest||2,529||2,208|
|Basic and diluted net income per common share||$0.58||$0.50|
|Weighted-average number of common shares:|
Certain reclassifications have been made to the prior period to conform to the current presentation.
SOURCE Wal-Mart Stores, Inc.
CONTACT: Investor Relations, 1-479-273-8446, or Jay Fitzsimmons, 1-479-273-6445, or Pauline Tureman, 1-479-277-9558, or media relations, Marty Heires, 1-479-273-4314, or Pre-recorded Conference Call, 1-203-369-1090, all of Wal-Mart Stores, Inc.
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