Wal-Mart sees profits climb by 26%
August 26, 2002,
Lifted by rising sales, wider margins and steady gains in its international business, second-quarter profits at Wal-Mart Stores Inc. jumped up by 25.6 percent, to $2.0 billion from $1.6 billion last year.
In an assist to the bottom line, in addition to the stronger sales, average gross margin widened by 30 basis points, to 21.9 percent from 21.6 percent a year ago. Climbing faster than the rate of sales, gross margin dollars improved by 15.6 percent, well ahead of the 13.1 percent increase in sales.
In the retailer's core Wal-Mart Stores segment, sales improved by 14.1 percent, to $38.6 billion, while operating profits climbed even faster, by 17.2 percent, to $3.0 billion.
Sam's Club sales advanced by 9.2 percent, to $7.9 billion, but operating profits grew at a slower pace of 3.0 percent, to $275 million.
International sales climbed by 15.9 percent, to $9.7 billion, and operating profits shot up by 61.9 percent, to $510 million.
Wal-Mart Stores Inc.
|Qtr. 7/31 (x000)||2002||2001||% chg|
|Oper. income (EBIT)||3,469,000||2,964,000||17.0|
|Per share (diluted)||0.46||0.36||27.8|
|Average gross margin||21.9%||21.6%||—|
|Six months||2002||2001||% chg|
|Oper. income (EBIT)||6,375,000||5,536,000||15.2|
|Per share (diluted)||0.83||0.67||—|
|Average gross margin||21.8%||21.4%||—|