follow us

Wal-Mart Still Strong

Helped by a double-digit rise in sales and strong operating profits in its warehouse clubs and international units, third quarter profits at Wal-Mart Stores Inc. edged up 3.8 percent, to $2.4 billion from $2.3 billion, despite a $109 million after-tax hit from hurricane damage and expenses tied to warranty programs.

Overall sales improved 10.1 percent, to $75.4 billion from $68.5 billion during the same period a year ago. Overall same-store sales improved 3.8 percent, helped by a strong boost from warehouse clubs. Same-store sales at the no-frills Sam's Club unit jumped up 8.1 percent, more than twice as high as the 2.9 percent increase at the core U.S. Wal-Mart business.

Taking a bite out of the bottom line, Wal-Mart said it took a one-time, after-tax charge of $40 million to cover the cost of damage from hurricanes Katrina, Rita and William. Putting further pressure on profits was $69 million in expenses tied to product warranty programs. Acting as an offset and providing some relief was $29 million the world's largest retailer received as its share of an antitrust litigation settlement with Visa and MasterCard.

As it relentlessly pursues its low-pricing philosophy, average gross margin thinned somewhat during the period, narrowing by 20 basis points, or two-tenths of a percentage point, to 23.1 percent from 23.3 percent. Operating costs held relatively steady, slipping by 10 basis points, or one-tenth of a percentage point, to 18.8 percent of sales from 18.9 percent a year ago.

Wal-Mart Stores Inc.

a. Third quarter results include $817 million in miscellaneous income, up 7.2 percent from $762 million during the same period a year ago. Total sales were $76.3 billion, up 10.1 percent from $69.3 billion.
b. Nine month results include $2.4 billion in miscellaneous income, up 6.5 percent from $2.2 billion in 2004. Total sales of $222.5 billion rose 9.9 percent from $205.2 billion.
Qtr. 10/31 (x000) 2005 2004 % change
Sales $75,436,000a $68,520,000a 10.1
Oper. income (EBIT) 4,049,000 3,784,000 7.0
Net income 2,374,000 2,286,000 3.8
Per share (diluted) 0.57 0.54 5.6
Average gross margin 23.1% 23.3%
SG&A expenses 18.8% 18.9%
Nine months (x000) 2005 2004 % change
Sales 223,155,000b 203,005,000b 9.9
Oper. income (EBIT) 12,669,000 11,793,000 7.4
Net income 7,640,000 7,103,000 7.6
Per share (diluted) 1.82 1.66 9.6
Average gross margin 23.2% 23.1%
SG&A expenses 18.6% 18.4%


Wal-Mart Results by Segment

Qtr. 10/31 (x000) 2005 2004 % change
Wal-Mart Stores
Sales $50,243,000 $45,888,000 9.5
Same-store sales 2.9% NA
Operating income 3,312,000 3,115,000 6.3
Sam's Club
Sales 10,019,000 9.082,000 10.3
Same-store sales 8.1% NA
Operating income 342,000 306,000 11.8
International
Sales 15,174,000 13,550,000 12.0
Same-store sales NA NA
Operating income 797,000 698,000 14.2
Nine months
Wal-Mart Stores
Sales 149,693,000 136,373,000 9.8
Same-store sales 3.1% NA
Operating income 10,610,000 9,921,000 6.9
Sam's Club
Sales 29,143,000 27,139,000 7.4
Same-store sales 5.0% NA
Operating income 342,000 306,000 11.8
International
Sales 44,319,000 39,493,000 12.2
Same-store sales NA NA
Operating income 2,214,000 2,009,000 10.2


Featured Video

  • Online Moves From Afterthought To Main Thought For Textiles Suppliers

    Camera Icon More Videos

Other Home Furnishings Sites

Casual Living
Gifts and Decorative Accessories
Home Accents Today
Kids Today
Furniture Today