BENTONVILLE, Ark., May 13 -- Wal-Mart Stores, Inc. (NYSE: WMT) today reported its sales and earnings for the quarter ended April 30, 2008. Net sales for the first quarter of fiscal year 2009 were approximately $94.1 billion, an increase of 10.2 percent over $85.4 billion for the first quarter of fiscal year 2008. Net income for the quarter was $3.022 billion, an increase of 6.9 percent from $2.826 billion in the first quarter of fiscal year 2008. Diluted earnings per share for the first quarter of fiscal year 2009 were $0.76, up from $0.68 per share in the same prior year quarter.
"We're off to a solid start, with record first quarter sales and earnings," said Lee Scott, Wal-Mart Stores, Inc. president and chief executive officer. "We continue to deliver against the business model that Sam Walton started -- selling branded merchandise for less. Our business is even more relevant to our customers today, given the current economic pressures."
Price leadership, better customer service and operational improvements remained the primary drivers of sales growth worldwide, even in light of economic headwinds caused by higher energy costs and food inflation.
"Our customers appreciate that Wal-Mart is the consistent price leader," Scott added. "We continue to make progress in delivering on our mission of saving people money so they can live better."
Net Sales Net sales were as follows (dollars in billions): Three Months Ended April 30, Percent 2008 2007 Change Net Sales: Wal-Mart Stores $59.073 $55.437 6.6% Sam's Club 11.112 $10.323 7.6% International 23.937 $19.627 22.0% Total Company $94.122 $85.387 10.2% Segment Operating Income Segment operating income for each of the Company's operating segments, which is defined as income before net interest expense, income taxes, unallocated corporate overhead and minority interest, was as follows (dollars in billions): Three Months Ended April 30, Percent 2008 2007 Change Operating Income: Wal-Mart Stores $4.362 $3.979 9.6% Sam's Club 0.386 0.370 4.3% International 1.044 0.903 15.6% Comparable Store Sales The Company reports comparable store sales in this earnings release based on the calendar months in the quarters that ended April 30, 2008 and 2007. The first quarter this year included an additional selling day on Feb. 29, due to the leap year. Comparable store sales for the United States were as follows: Without Fuel With Fuel Fuel Impact Three Months Three Months Three Months Ended Ended Ended April 30, April 30, April 30, 2008 2007 2008 2007 2008 2007 Wal-Mart Stores 2.7% -0.1% 2.7% -0.1% 0.0% 0.0% Sam's Club 3.6% 4.7% 6.5% 4.1% 2.9% -0.6% Total U.S. 2.9% 0.6% 3.3% 0.6% 0.4% 0.0% Guidance
"For the second quarter of fiscal year 2009, we estimate the Company's comparable store sales increase in the United States to be between flat and two percent. As we have discussed, it is currently difficult to quantify the impact on U.S. sales from the stimulus payments," said Tom Schoewe, Wal-Mart Stores, Inc. executive vice president and chief financial officer. "We expect the Company's earnings per share for the second quarter to be between $0.78 and $0.81. As a reminder, last year's second quarter results included a net benefit of approximately $0.04 per share from the impact of a reduction of general liability and workers' compensation claims accruals, gains from the sale of certain real estate properties somewhat offset by charges for legal and other contingencies."
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 are 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 (NYSE) 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 our management's expectations regarding the comparable store sales increase in the United States in the second quarter of fiscal year 2009 and the Company's expectations for its earnings per share for the second quarter of fiscal year 2009 that Wal-Mart believes are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. These statements are intended to enjoy the protection of the safe harbor for forward-looking statements provided by that Act. These statements can be identified by the use of the word "estimate" and "expect" in the statements. These forward-looking statements are subject to risks, uncertainties and other factors, domestically and internationally, including, the cost of goods, competitive pressures, geopolitical conditions, general economic conditions, consumer credit availability, 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 CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (Amounts in millions except per share data) SUBJECT TO RECLASSIFICATION Three Months Ended April 30, 2008 2007 Revenues: Net sales $94,122 $85,387 Membership and other income 1,181 1,023 95,303 86,410 Costs and expenses: Cost of sales 71,886 65,311 Operating, selling, general and administrative expenses 18,107 16,249 Operating income 5,310 4,850 Interest: Debt 488 406 Capital leases 72 69 Interest income (64) (83) Interest, net 496 392 Income before income taxes and minority interest 4,814 4,458 Provision for income taxes 1,670 1,532 Income before minority interest 3,144 2,926 Minority interest (122) (100) Net income $3,022 $2,826 Net income per common share: Basic net income per common share $0.76 $0.69 Diluted net income per common share $0.76 $0.68 Weighted-average number of common shares: Basic 3,957 4,122 Diluted 3,967 4,128 Dividends declared per common share $0.95 $0.88 WAL-MART STORES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Amounts in millions) SUBJECT TO RECLASSIFICATION April 30, April 30, January 31, 2008 2007 2008 ASSETS Current assets: Cash and cash equivalents $8,072 $6,563 $5,569 Receivables 3,256 2,924 3,654 Inventories 35,541 35,200 35,180 Prepaid expenses and other 3,426 2,892 3,182 Total current assets 50,295 47,579 47,585 Property and equipment, at cost 124,697 112,972 122,648 Less accumulated depreciation (30,200) (25,713) (28,773) Property and equipment, net 94,497 87,259 93,875 Property under capital leases 5,808 5,445 5,736 Less accumulated amortization (2,680) (2,420) (2,594) Property under capital leases, net 3,128 3,025 3,142 Goodwill 16,620 14,585 16,071 Other assets and deferred charges 2,943 2,974 2,841 Total assets $167,483 $155,422 $163,514 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Commercial paper $5,924 $4,627 $5,040 Accounts payable 29,048 27,562 30,370 Dividends payable 3,322 3,088 - Accrued liabilities 14,912 13,407 15,799 Accrued income taxes 1,711 1,558 1,016 Long-term debt due within one year 5,864 4,212 5,913 Obligations under capital leases due within one year 321 246 316 Total current liabilities 61,102 54,700 58,454 Long-term debt 32,379 29,567 29,799 Long-term obligations under capital leases 3,584 3,548 3,603 Deferred income taxes and other 5,310 5,426 5,111 Minority interest 1,878 2,270 1,939 Commitments and contingencies Shareholders' equity: Common stock and capital in excess of par value 3,628 3,284 3,425 Retained earnings 55,257 53,956 57,319 Accumulated other comprehensive income 4,345 2,671 3,864 Total shareholders' equity 63,230 59,911 64,608 Total liabilities and shareholders' equity $167,483 $155,422 $163,514 WAL-MART STORES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Amounts in millions) Three Months Ended SUBJECT TO RECLASSIFICATION April 30, 2008 2007 Cash flows from operating activities: Net income $3,022 $2,826 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 1,628 1,488 Other operating activities 194 470 Changes in certain assets and liabilities, net of effects of acquisitions: Decrease in accounts receivable 450 62 Increase in inventories (213) (1,280) Decrease in accounts payable (1,191) (1,115) Decrease in accrued liabilities (185) (604) Net cash provided by operating activities 3,705 1,847 Cash flows from investing activities: Payments for property and equipment (2,447) (3,157) Proceeds from disposal of property and equipment 126 170 Investment in international operations, net of cash acquired - (466) Other investing activities 88 11 Net cash used in investing activities (2,233) (3,442) Cash flows from financing activities: Increase in commercial paper 892 1,988 Proceeds from issuance of long-term debt 2,521 3,170 Payment of long-term debt (361) (2,232) Dividends paid (940) (908) Purchase of Company stock (1,375) (943) Other financing activities 128 (276) Net cash provided by financing activities 865 799 Effect of exchange rates on cash 166 (14) Net increase (decrease) in cash and cash equivalents 2,503 (810) Cash and cash equivalents at beginning of year 5,569 7,373 Cash and cash equivalents at end of period $8,072 $6,563
SOURCE Wal-Mart Stores, Inc. -0- 05/13/2008 /CONTACT: Investor Relations, Investor Relations, +1-479-273-8446, or Carol Schumacher, +1-479-277-1498, or Mike Beckstead, +1-479-277-9558, or Media Relations, John Simley, 1-800-331-0085, Pre-recorded Conference Call +1-203-369-1090, all of Wal-Mart Stores, Inc./ /Photo: http://www.newscom.com/cgi-bin/prnh/20070927/WALMARTCOMLOGO AP Archive: http://photoarchive.ap.org PRN Photo Desk, email@example.com / /Web site: http://www.walmartstores.com / (WMT) CO: Wal-Mart Stores, Inc. ST: Arkansas IN: REA SU: ERN ERP CCA JP-AH -- LATU081 -- 4259 05/13/2008 06:13 EDT http://www.prnewswire.com