Wal-Mart Improves Comps Across Board

Bentonville, Ark.— Wal-Mart Stores, Inc. reported increased second fiscal quarter net sales rose 10.2 percent, to $76.8 billion from $69.7 billion a year ago.

Comparable-store sales for the quarter increased 3.5 percent — made up of a comp increase for Wal-Mart Stores of 3.6 percent and a comp increase at Sam's Club of 2.9 percent. Net income for the quarter was $77.5 million, an increase of 10 percent from $70.5 million last year.

For the six months ended July 31, Wal-Mart reported net sales were up 9.8 percent. Net income for the period was up 9.8 percent as well, to $149 million from $136 million a year ago. Total U.S. comps for the six-month period were up 3.2 percent — made up of a comp increase of 3.2 percent at Wal-Mart Stores as well as a 3.2 percent increase at Sam's Club.

Net income for the six months ended July 31 was favorably impacted by two items totaling $145 million after tax or 3 cents per share: an increase due to favorable tax resolutions of $77 million and positive legal developments of $68 million after-tax.

Lee Scott, president and CEO, said, “Early in the quarter, our results were disappointing; however, July came in stronger than expected. Wal-Mart Stores did miss their plan as our customer continues to be impacted by higher gas prices and it is difficult to improve our expense leverage in the current environment.”

The company forecast earnings per share in the third quarter to come in between 55 and 59 cents and, for the year, the forecast was set between $2.63 and $2.70.