Published:
Wal-Mart Reports September Sales
BENTONVILLE, Ark., Oct. 8 /PRNewswire-FirstCall/ -- Wal-Mart Stores, Inc.
(NYSE: WMT) reported net sales for the five- and 35-week periods ending Oct.
3, 2008, and Oct. 5, 2007, respectively, as follows (dollars in billions).
Net Sales
5 Weeks Ended Percent 35 Weeks Ended Percent
10/3/2008 10/5/2007 Change 10/3/2008 10/5/2007 Change
Walmart U.S. $22.482 $21.447 4.8% $165.123 $154.744 6.7%
Sam's Club 4.391 4.066 8.0% 31.439 29.244 7.5%
International 9.356 8.718 7.3% 66.810 57.730 15.7%
Total Company $36.229 $34.231 5.8% $263.372 $241.718 9.0%
Comparable store sales for the five- and 35-week periods ending Oct. 3,
2008, and Oct. 5, 2007, respectively, appear below. The net impact of
Hurricanes Gustav, Hanna and Ike on total U.S. comparable store and club sales
was approximately negative 0.4 percentage points.
Five Weeks Comparable Store Sales
Without Fuel With Fuel Fuel Impact
10/3/2008 10/5/2007 10/3/2008 10/5/2007 10/3/2008 10/5/2007
Walmart U.S. 2.0% 0.8% 2.0% 0.8% 0.0% 0.0%
Sam's Club 4.6% 4.4% 7.4% 4.1% 2.8% -0.3%
Total U.S. 2.4% 1.4% 2.8% 1.4% 0.4% 0.0%
Thirty-five Weeks Comparable Store Sales
Without Fuel With Fuel Fuel Impact
10/3/2008 10/5/2007 10/3/2008 10/5/2007 10/3/2008 10/5/2007
Walmart U.S. 2.8% 0.8% 2.8% 0.8% 0.0% 0.0%
Sam's Club 3.5% 5.1% 6.7% 4.9% 3.2% -0.2%
Total U.S. 2.9% 1.5% 3.4% 1.5% 0.5% 0.0%
Walmart U.S.
Walmart U.S. had solid comparable store sales during the September period,
despite the negative impact of approximately 0.5 percent from store closures
due to the hurricanes that affected many areas of the country. The hurricanes
forced the temporary closure of 341 Walmart U.S. stores in coastal areas and
the upper Midwest, due primarily to the interruption of electrical power and
other disruptions to operations.
"In spite of both the impact from the hurricanes and the recent challenges
to consumer confidence as a result of the economic environment, Walmart U.S.
had another period of solid comparable store sales performance," said Eduardo
Castro-Wright, Walmart U.S. president and chief executive officer. "We
continue to believe that the strong Walmart value proposition is bringing more
and more customers to our stores. We are confident that the customers will
continue to shop with us as we enter the holiday season."
Comparable store sales during the September period were strong in both
grocery and health and wellness. Sales in grocery were led by food and
consumables. Customers continue to look for basics for their families.
Children's clothing was positive during the September period, while sales of
discretionary items were soft. During October, customers will continue to
find values on a full range of Halloween merchandise.
Sam's Club
Sales at Sam's Club during the September period were driven by strengths
in fresh food, with produce leading the category. Within general merchandise,
apparel sales were strong, as members reacted positively to new fall items.
Categories with softer sales included house wares, furniture, video games and
electronics. Within electronics, LCD TVs and small electronic devices, such as
GPS units and digital audio, performed well.
"Sam's Club members continue to search for value in this economy," said
Doug McMillon, Sam's Club president and chief executive officer. "Food and
consumables, including fresh foods, are driving increases in comparable club
traffic and ticket. While discretionary items are under pressure, members are
reacting positively to new items. Price is the primary focus, but newness and
quality still matter to them."
McMillon added that comparable club sales were strong in
hurricane-affected areas during the back half of the period, providing a
benefit to Sam's Club comparable club sales without fuel of approximately 0.5
percentage points.
Fuel sales continue to be strong, with increases both in dollars and
gallons sold. Fuel prices were up significantly over the same period last
year. The recent hurricanes in the Gulf Coast contributed to fuel market
disruptions in some southeastern locations during the period. All Sam's Club
gas stations are operating and available to serve members' needs.
Wal-Mart International
"While we are operating in tough economic conditions in many countries
around the world, comparable sales continue be solid in many of our markets,"
said Mike Duke, vice chairman, Wal-Mart International. "In this environment,
we continue to do what we do best, providing everyday low prices so customers
around the world can save money and live better."
In theUnited Kingdom, ASDA delivered strong sales growth, as fresh and
core grocery categories continued to perform well and sales of fall and winter
George apparel exceeded expectations. Baby products also experienced strong
sales growth because of a successful cross-category baby event.
Wal-Mart Brazil reported positive real comparable store sales in the low
single digits. The best performances in the period came from Todo Dia stores
and the Maxxi cash-and-carry business, which had strong sales in general
merchandise.
At Wal-Mart Canada, total sales increased in the high single digits, with
strengths in consumables, food and electronics. Sales were aided by Wal-Mart
Canada's 14th anniversary event and competitive pricing on food staples and
essentials. Sales in apparel and shoes slowed during the period. Comparable
store sales were in the low single digits and slightly lower than the year to
date.
InChina, the Wal-Mart and Trust-Mart businesses delivered solid
performances leading into the Mid-Autumn Festival. Average ticket in both
businesses increased. Five new Wal-Mart supercenters opened during the month.
At Seiyu inJapan, comparable store sales were in the negative mid-single
digits. Food sales were impacted by softer sales in beverages, produce,
seafood and chilled foods. General merchandise sales continue to be negatively
impacted by the strategic reduction of promotional activities, as Seiyu
continues to migrate toward every day low pricing (EDLP). Baby product sales
continue to improve due to this emphasis on EDLP.
Wal-Mart Mexico sales continued to be impacted by the slowdown of the
Mexican economy. While consumer confidence has sharply declined during the
past month, nominal comparable store sales were 3.8 percent higher for the
five-week sales period, led by performances at Sam's Club and Bodega Aurrera.
Wal-Mart Mexico reported its third quarter results yesterday, after the market
closed.
Total International sales were impacted negatively by the strengthening of
the U.S. dollar against the British pound.
International net sales figures for both five weeks and 35 weeks ended
Oct. 5, 2007 included an immaterial adjustment to sales as reported in last
year's September comparable store sales news release. These adjusted numbers
on page one of this news release ($8.718 billion and $57.730 billion,
respectively) do not affect Wal-Mart International's or the Company's
consolidated net sales figures disclosed in quarterly earnings press releases
or periodic filings with the U.S. Securities and Exchange Commission.
Guidance
The Company expects U.S. comparable store sales for the October four-week
period to be between one and two percent, said Tom Schoewe, executive vice
president and chief financial officer. The October four-week period runs from
Saturday, Oct. 4 through Friday, Oct. 31, 2008.
"The September period included two first-of-the-month paydays, which
generally benefit sales," Schoewe said. "However, the October period this year
contains no first-of-the-month payday, and that is accounted for in our
estimate.
"We maintain our current estimate for earnings per share from continuing
operations for the third quarter ending Oct. 31, 2008 to be in the range of
$0.73 and $0.76 per share," he said.
Wal-Mart will announce earnings for the third quarter of fiscal year 2009
on Nov. 13, 2008.
Wal-Mart Stores, Inc. operates Walmart discount stores, supercenters,
Neighborhood Markets and Sam's Club locations inthe United States. The
Company operates inArgentina,Brazil,Canada,China,Costa Rica,El Salvador,
Guatemala,Honduras,Japan,Mexico,Nicaragua,Puerto Rico and theUnited
Kingdom and, through a joint venture, inIndia. The Company's common stock is
listed on the New York Stock Exchange 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 that Wal-Mart believes are a "forward-
looking statement" within the meaning of the Private Securities Litigation
Reform Act of 1995, as amended, and that are intended to enjoy the protection
of the safe harbor for forward-looking statements provided by that act. These
forward-looking statements relate to our management's expectations regarding
the Company's customers shopping with the company during the holiday season,
the Company's values on Halloween merchandise and our management's estimates
for our comparable store sales inthe United States for the October four-week
reporting period to end October 31, 2008 and for our earnings per share from
continuing operations for the third quarter of fiscal year 2009. These
statements are identified by use of the words "will continue" "expects" and
"estimate" in the statements. These forward-looking statements are subject to
risks, uncertainties and other factors, domestically and internationally,
including general economic conditions, the availability of consumer credit,
consumer spending patterns and debt levels, unemployment levels, fuel prices,
inflation levels, weather conditions, competitive pressures and other risks.
The Company discusses certain of these matters and other risk factors more
fully in its filings with the SEC, including its most recent 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 certain other Company filings 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 made in this release and not to place undue
reliance on such 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 materially from those discussed
in such forward-looking statements. The forward-looking statements included
in this release are made only as of the date of this release, and we undertake
no obligation to update such statement to reflect subsequent events or
circumstances.
SOURCE Wal-Mart Stores, Inc.
Copyright © 2008, PRNewswire
Copyright © 2008, NewsBlaze,
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