Wal-Mart Stores has booked an increase in first-quarter profits as it reported better-than-expected sales at its US outlets.
The world’s largest retailer today (17 March) said net income rose 10.1% to US$3.7bn for the quarter ended 30 April. Net income from continuing operations was up 9.2% to US$3.74bn, as operating income rose 8.3% to $6.3bn.
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Revenue grew 8.6% to $112.3bn. Sales in its US operations increased 5.9% to $66.3bn with comparable-store sales rising 2.6%, better that its guidance, which forecast flat sales or an increase of 2% at best. Comparable-store sales in the US have grown for three quarters, following nine consecutive quarterly declines. Wal-Mart US also grew operating income faster than sales this quarter.
“In a highly competitive retail environment, Wal-Mart US is increasing price separation across categories and driving increased traffic to both the grocery and general merchandise areas of our stores. That strategy was reflected in the 2.6% comp,” said president and CEO Mike Duke. “Customers count on us for one-stop shopping and our merchandising priorities are aligned with that in mind.”
Its international division recorded a 15% increase in sales to reach $32.1bn in sales.
“Walmart International delivered strong sales growth in the first quarter and operating income grew faster than sales, increasing more than 20 percent,” Duke added.
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By GlobalData“We are very focused on improving profitability and returns, and with greater transitions to everyday low price in more markets, we have stronger customer traffic, which contributed to net sales growth.”
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