Walmart “proud” of financial results in Q1 2017

Published: 23-May-2016

Walmart puts in solid performance amid shaky results from other US retailers

Wal-Mart Stores has announced its Q1 2017 results with its US operation providing a welcome sales boost.

The US retail market has been under increasing pressure in the last quarter, with a flurry of poor financial results reported by the likes of Macy’s, Nordstrom and Kohl’s, among others.

But Walmart managed to pull in ahead in its first quarter, with its US operation notably picking up pace. Walmart US’ net sales grew 4.3% up to $73,295, drawing in an additional $3,050m. Meanwhile comparable same-store sales were up 1%, representing the retailer’s seventh consecutive quarter of growth. Operating income did take a dive down 8.8%, however, to $4,232m.

The picture was not as rosy outside of Walmart’s domestic market. Walmart International suffered a 7.2% drop in Q1 2017 net sales, down to $28,083m. Net sales did grow 4.3% at a constant currency rate and operating income was up 22%.

Brett Biggs, Wal-Mart Stores, Inc. Executive Vice President and CFO, said: “We are proud of the overall results in the first quarter and there is momentum in many parts of the business. Based on our views of the global operating environment, and assuming currency exchange rates remain at current levels, we expect second quarter fiscal 2017 EPS to range between $0.95-$1.08.”

“Additionally, we expect comp sales for Walmart U.S. to be about 1.0%, and Sam's Club, without fuel, to be slightly positive for the 13-week period ending July 29, 2016," added Biggs.

Overall, Walmart revenues grew 0.9% to $115,904m while operating income dropped 7.1% to $5,275m. At the time of press, Wal-Mart Stores shares were at $69.85, up 9.3% and under the year high of $75.83.

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