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Walmart Posts Q1 Gains

5/17/2011 09:28:07 AM Eastern

Bentonville, Ark .- Walmart
Stores reported higher net sales and net income in its fiscal first quarter and
a slightly better performance for its U.S. operation.

Net sales for the first quarter
of the fiscal year, ended April 30, were $103.4 billion, an increase of 4.4
percent from $99.1 billion in the first quarter last year. Net sales for the
quarter included a currency exchange rate benefit of $1.3 billion.

Consolidated net income in the
quarter was $3.55 billion, up 3.1 percent from the prior year's $3.44 billion.

During the quarter Walmart's
U.S. sales were $62.7 billion, up 0.6 percent from the prior year's $62.3
billion. Operating income for the segment was $4.65 billion, up 0.8 percent
from the prior year's $4.615 billion.

Sam's Club reported sales of
$12.8 billion in the quarter, up 9.4 percent from the prior year's $11.7
billion. Operating income in the quarter was $459 million, up 7 percent from
the prior year's $429 million.

Comp-store sales, without fuel, were
down for Walmart's U.S. unit, but up for Sam's Club. Walmart's U.S. comp sales were
down 1.1 percent, compared with the prior year's first quarter when it was down
1.4 percent. Sam's Club had comp-store sales up 4.2 percent compared with a 0.7
percent increase last year.

Total U.S. comp-store sales were
down 0.3 percent compared to a drop of 1.1 percent for last year's first quarter.

Mike Duke, president/CEO,
commented in a statement that, "Walmart U.S. comp sales for the first quarter
were within our guidance range. We recognize we still have work to do and comp
sales growth remains the greatest priority for me and the entire Walmart U.S.
team. We're focused on delivering every day low price and a wide assortment."

Duke also highlighted the strong
Sam's Club performance.

"Sam's Club delivered really
good results this quarter, with a 4.2 percent comp that was well above our
guidance," he explained. "Sam's momentum is reflected in comp sales and
increases in new members. The warehouse channel is increasing in importance in
the retail landscape and Sam's is gaining further momentum. We expect Sam's to
add even more value to the company's overall portfolio."