Wal-Mart Stores, Inc.
(NYSE: WMT) reported net sales for the five-week and 48-week periods ending
Dec. 29, 2006, and Dec. 30, 2005, respectively, as follows (dollars in
billions):
5 Weeks Ended 48 Weeks Ended
Percent Percent
12-29-2006 12-30-2005 Change 12-29-2006 12-30-2005 Change
Wal-Mart Stores $28.795 $27.920 3.1% $209.592 $194.861 7.6%
Sam's Club 4.861 4.605 5.6% 38.607 36.939 4.5%
International 10.340 7.925 30.5% 72.189 55.265 30.6%
Total Company $43.996 $40.450 8.8% $320.388 $287.065 11.6%
Comparable sales for the periods ending Dec. 29, 2006, and Dec. 30, 2005, were as follows:
5 Weeks Ended 48 Weeks Ended
12-29-2006 12-30-2005 12-29-2006 12-30-2005
Wal-Mart Stores 1.3% 2.4% 1.8% 3.4%
Sam's Club 3.5% 3.2% 2.9% 3.8%
Total U.S. 1.6% 2.5% 2.0% 3.5%
The 30.5% increase for the five-week period and the 30.6% increase for the 48-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 15.6 and 17.6 percentage points to the net sales increases in International for the five-week and 48-week periods, respectively.
Wal-Mart Sales Strong in Electronics, Food & Consumables
During December, the Wal-Mart Stores Division had a very strong performance in electronics and the grocery business, including pets, household chemicals, paper goods, health and beauty, food and pharmacy.
"We believe Wal-Mart is becoming more of a destination for electronics as consumers recognize that we have a leadership position on low prices," said Eduardo Castro-Wright, president and chief executive officer, Wal-Mart Stores Division, U.S. "Customers liked the values they found in digital TVs, digital audio products, computers and gaming systems."
The DVD release of "Pirates of the Caribbean: Deadman's Chest" was a "huge hit" according to Castro-Wright, as DVD sales did well throughout the holidays. Wal-Mart's price rollbacks on board games, which started in mid- October and ran through Dec. 24, generated strong sales for toys, as did ride- on vehicles. Marketing spending was higher this December than last year, and Castro-Wright indicated that the Company's very focused messaging helped drive sales, especially in electronics and toys.
"People entertain more during the holidays and they liked our food and seasonal entertaining offerings," Castro-Wright explained. "Sell-throughs of Christmas seasonal items were higher this year than last season, driven by strong sales in indoor decor, housewares, and poinsettias."
While overall sales were soft in apparel and home as the Company had anticipated, pricing actions in apparel provided significant unit lift. Warmer than normal temperatures in most of the United States also contributed to a slow-down in sales of some winter seasonal items.
"Our stores and marketing were well positioned for traffic in the days after Christmas, as shoppers began to come in to spend their gift cards," said Castro-Wright. "They found every day low prices and one-time offers on various electronics, as well as fitness gear and workout equipment."
Average ticket drove the December comparable sales figure and the traffic trend was similar to November. The Company continued to see a negative impact on comparable store sales for the five weeks of December from the hurricane-related sales last year.
"While the impact on our comp sales from the hurricanes continues to trend downward, we expect to see an impact through the first quarter of the next fiscal year," said Tom Schoewe, Wal-Mart Stores, Inc. executive vice president and chief financial officer.
Guidance
"Comparable store sales in the United States for the January five-week period are estimated to be between 1 and 2 percent," Schoewe said. "We reiterate our previously stated earnings guidance from continuing operations of $0.88 to 0.92 per share for the fourth quarter and $2.85 to $2.89 per share for the full fiscal year."
Detail on Comparable Sales Fuel Impact
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 comparable sales figures for the five-week and 48-week period ending Dec. 29, 2006, by (0.5) and (0.3) percentage points, respectively. Fuel sales had no impact on the total U.S. comparable sales figures. Including the impact of fuel sales, the Sam's Club comparable sales figures for the five-week and 48- week period ending Dec. 29, 2006, would have been 3.0 and 2.6, respectively.
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 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 the impact of hurricanes last year on our comp sales, our management's estimate of comparable sales for the January five- weeks, and our guidance regarding our earnings per share from continuing operations for the fourth quarter and for all of fiscal 2007. These statements are identified by use of the words "expect", "estimated" and "guidance" 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 and our most recent 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 that Quarterly Report on Form 10-Q and together with all of our other filings, including current reports on Form 8-K, made 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.
Investor Relations, +1-479-273-8446, or Carol Schumacher, +1-479-277-1498, or Pauline Tureman, +1-479-277-9558, or Media Relations, John Simley, +1-800-331-0085, all of Wal-Mart Stores, Inc.
http://www.walmartstores.com
