Wal-Mart Stores, Inc. (NYSE: WMT) reported net sales for the four-week and 43-week periods ending Nov. 24, 2006, and Nov. 25, 2005, respectively, as follows (dollars in billions): 4 Weeks Ended 43 Weeks Ended Percent Percent 11-24-2006 11-25-2005 Change 11-24-2006 11-25-2005 Change Wal-Mart Stores $18.761 $17.384 7.9% $180.797 $166.941 8.3% Sam's Club 3.314 3.247 2.1% 33.746 32.334 4.4% International 6.495 4.895 32.7% 61.849 47.340 30.6% Total Company $28.570 $25.526 11.9% $276.392 $246.615 12.1%
Comparable sales for the periods ending Nov. 24, 2006, and Nov. 25, 2005, were as follows:
4 Weeks Ended 43 Weeks Ended 11-24-2006 11-25-2005 11-24-2006 11-25-2005 Wal-Mart Stores -0.5% 4.2% 1.9% 3.6% Sam's Club 2.0% 6.5% 2.7% 3.9% Total U.S. -0.1% 4.5% 2.0% 3.7%
The 32.7% increase for the four-week period and the 30.6% increase for the 43-week period in International's net sales include sales from the consolidation of Seiyu and Wal-Mart Central America and the acquisition in Southern Brazil. These entities added 17.1 and 18.0 percentage points to the net sales increases in International for the four-week and 43-week periods, respectively.
Wal-Mart Stores Segment:
"Of our five key focus areas -- electronics, home, apparel, food and pharmacy -- we are posting strong results in electronics, food and pharmacy. Comparable store sales in food were in the mid-single digits," said Eduardo Castro-Wright, president and ceo, Wal-Mart Stores Division U.S. "As I discussed at our October analysts' meeting [October 23, 2006], the home and apparel business is challenging and this will continue throughout the fourth quarter. While we were disappointed in these areas, we did see strong results in our home and apparel basics."
Increases in average ticket drove the comparable sales figure, while traffic declined.
The Company saw a negative impact on comparable store sales of approximately 80 basis points from the hurricane related sales last year. As mentioned in past months, the positive effect from the hurricanes on last year sales will continue to impact our comparable sales results for the remainder of this year and into early next year, although it will gradually lessen over time.
"We are excited to have expanded our $4 generic prescription program to all of our U.S. pharmacies," stated Castro-Wright. "The price leadership position Wal-Mart has taken in the generics category is making a difference for our customers across the country. The Company's pharmacies posted a strong double-digit comparable sales performance for the November period.
"Additionally, the strength in electronics was driven by solid performances in HDTVs, MP3 players and computers on the day after Thanksgiving," said Castro-Wright. "Throughout the month, we saw strong sales from new releases in DVDs and video gaming systems.
"Customers appreciate the fact we give them the best prices in electronics. They can afford more of the name brands and technology in electronics for the season," he added. "We are pleased at the number of customers who are adding product warranties to their electronics purchase. While the supply of PS3 and Nintendo Wii will continue to be tight, we believe Wal-Mart has the appropriate inventory levels in our other electronics product offerings to meet the demand for the rest of the Christmas season. In addition, we anticipate strong demand for the upcoming releases of Pirates of the Caribbean - Dead Man's Chest and Talladega Nights."
During the Christmas timeframe, customers will see three additional circulars communicating price leadership on great gift ideas to reinforce themes for last minute purchases, gift card redemption and resolutions for the new year. Shoppers can also look forward to additional price cuts on a large selection of key gift, entertaining and holiday items throughout the Christmas and holiday season.
"Comparable store sales in the U.S. for the December five-week period are estimated to be 0 to 1 percent," said Tom Schoewe, Wal-Mart Stores, Inc. executive vice president and chief financial officer. "Factors impacting our December comparable store sales estimate include the impact of the hurricanes from last year and continued challenges in our apparel and home business. We expect to see improvements in our apparel and home categories by spring."
Comparable 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 Nov. 24, 2006, by -1.3 and -0.2 percentage points, respectively. Fuel sales impacted Sam's Club comparable sales figures for the 43-week period by -0.1 percentage points and had no impact on the total U.S. comparable sales figures. Including the impact of fuel sales, the Sam's Club and total U.S. comparable sales figures for the four-week period ending Nov. 24, 2006, would have been 0.7 and -0.3 percent, respectively. Sam's Club sales figures for the 43-week period would have been 2.6 percent.
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 www.walmartfacts.com. Online merchandise sales are available at 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 the impact of the hurricanes last year on our comp sales, our management's forecast of comparable sales for the December five- weeks, and our expectation of improvements in our apparel and home categories. These statements are identified by use of the words "will continue", "estimated" and "expect" in these statements. These forward-looking statements are subject to risks, uncertainties and other factors, domestically and internationally, including consumer spending patterns and debt levels, 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 filed with the SEC.
This release should be read in conjunction with that Annual Report on Form 10-K 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, our actual results may differ from those stated or implied 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.
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