View all newsletters
Receive our newsletter – data, insights and analysis delivered to you
  1. News
August 17, 2010

US: Wal-Mart lifts profit guidance despite weak US sales

Wal-Mart, the world's largest retailer, today (17 August) raised its full-year profit target despite seeing US sales fall again during its second quarter.

Wal-Mart, the world’s largest retailer, today (17 August) raised its full-year profit target despite seeing US sales fall again during its second quarter.

The company said it sees its annual earnings per share now reaching US$3.95-4.05, up from an earlier forecast of $3.90-4.00.

CFO Tom Schoewe said Wal-Mart had changed its earnings target due to “the strength of our underlying operating performance” despite the “challenges” facing the retailer’s US business in the short term.

“In the second quarter, we delivered on our promise to leverage expenses, and this commitment remains a strategic priority throughout the company. We plan to continue leveraging expenses,” Schoewe said.

Wal-Mart’s earnings per share for the quarter to 31 July stood at $0.97, up from $0.89 a year earlier. Net income from continuing operations climbed 3.6% to $3.6bn. Operating income increased 4.4% to $6.19bn.

The retailer’s second-quarter net sales grew 2.8% to $103.01bn, on the back of an 11% rise in sales outside the US to $26bn.

In the US, Wal-Mart’s net sales were flat at $64.65bn, although comparable-store sales, a key metric, dropped 1.8% in the second quarter. In the first quarter of Wal-Mart’s current fiscal year, US comparable-store sales were down 1.4%.

First-half net income from continuing operations reached $6.9bn, up 6.6%. Operating income climbed 7.4% to $11.93bn. Net sales rose 4.4% to $202.11bn.

Wal-Mart’s comparable-store sales in the US fell 1.6% during the first half of its fiscal year.

Click here for the full second-quarter and first-half statement from Wal-Mart; check back later for further insight from the retailer’s results.

 

Related Companies

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Friday. The industry's most comprehensive news and information delivered every other month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU