Sam's Club sales help Wal-Mart
February 23, 2004,
Helped by an earnings turnaround at its Sam's Club unit, and continued growth abroad, Wal-Mart Stores Inc. recorded a fourth-quarter profit of $2.7 billion, up 8.5 percent from $2.5 billion last year.
Sales in U.S. stores grew by 11.3 percent, to $50.6 billion from $45.5 billion last year, a relatively subdued pace compared with the 25 and 30 percent increases the company was putting up a few years ago. Picking up some of the slack was the retailer's international operation, where sales grew almost twice as fast, rising by 17.3 percent, to $14.3 billion from $12.2 billion last year. Sam's Clubs grew by 9.5 percent, to $9.6 billion from $8.7 billion.
Same-store U.S. sales rose 4.8 percent, with a revitalized Sam's Club outpacing growth in core Wal-Mart stores. Sam's grew its comps by 6.7 percent, compared with the 4.4 percent pace at Wal-Mart.
Even more importantly, Sam's grew its operating profits at a faster pace than any of Wal-Mart's other segments — up 17.1 percent, to $343 million from $293 million last year. Growing almost twice as fast as the U.S. stores, operating profits in the international segment grew by 15.2 percent, to $862 million from $748 million a year ago.
With the rate of growth decelerating in the United States as the format matures here, operating profits in the core U.S. Wal-Mart franchise grew by 8.3 percent, to $3.9 billion from $3.6 billion the preceding year.
Wal-Mart Stores Inc.
|Qtr. 1/31 (x000)||2003||2002||% chg|
|a-Fourth-quarter results include $696 million in miscellaneous income, up 37.8 percent from $505 million last year; $54 million in interest income, up 68.8 percent from $32 million last year; and $82 million in income from the company's minority interest in a joint venture, up 28.1 percent from $64 million last year. Prior-year results include $56 million in income from the McLane Co. subsidiary, sold in May 2003 to Berkshire Hathaway Inc.
b-12-month results include $2.4 billion in miscellaneous income, up 19.9 percent from a year ago; $164 million in interest income, up 24.2 percent from $132 million last year; $214 million in income from a minority interest in a joint venture, up 10.9 percent from $193 million in 2002; and $193 million in income form the discontinued McLane operation, up 40.9 percent from $137 million last year.
|Oper. income (EBIT)||4,050,000||3,602,000||12.4|
|Per share (diluted)||0.63||0.57||10.5|
|Average gross margin||21.8%||21.7%||—|
|12 months||2003||2002||% chg|
|Oper. income (EBIT)||12,673,000||11,334,000||11.8|
|Per share (diluted)||2.07||1.79||15.6|
|Average gross margin||22.5%||22.3%||—|
Fourth quarter segment results
|Sam's Club||2003||2002||% change|