UPDATED!
Bentonville,
Ark. – Wal-Mart Stores reported that Walmart U.S. and Sam’s Club reported
higher sales in its fiscal second quarter, but corporate comp sales were flat
in the U.S.
Walmart U.S.
stores had sales of $64.9 billion, up 0.4 percent, but comp-store sales,
excluding fuel, was down 0.9 percent in the quarter, compared with a 1.8
percent drop the prior year.
Sam’s Club
reported sales of $12 billion, excluding fuel, an increase of 4.9 percent when
compared with the prior year’s second quarter. Sam’s Club had a 5 percent
increase in comp-store sales for the quarter vs. the prior year’s 1 percent
increase.
Total comp-store
sales for Wal-Mart Stores were flat in the quarter, excluding fuel, compared
with a 1.4 percent drop in last year’s quarter.
Operating income
for Walmart U.S. stores was up 2.1 percent to $4.9 billion compared with last
year, while Sam’s Club had a gain of 15 percent to $492 million.
Bill Simon,
Walmart U.S. president/CEO, commented, “Our hardlines [sales] are improving,”
but he noted, “We remain concerned about the economic pressure on our customers
and the uncertain impact it can have on their shopping behavior.”
In a recorded
earnings announcement, Simon reported that “Double-digit deflation in TV prices
still exists, but our unit sales were up again. Customers want innovation, and
tablets continue to sell very well. We continue to see strength in our prepaid
wireless business [and] Straight Talk remains a $1 billion-plus brand for
Walmart U.S.”
He added that
during the quarter, “we also launched a delivery and installation service
program for electronics. We’re providing delivery, setup and installations for
TVs. We also offer basic set-up for home theater and wireless networks. The
in-home service network has up to 50,000 technicians available to service our
customers. Our prices are very competitive, and this now puts us on par with
other electronics retailers.”
At Sam’s Club,
Brian Cornell, president/CEO, said, “We had an outstanding second quarter, and
our sales momentum remains strong. New member signups have been growing. It was
in the third quarter last year that our comp performance began to accelerate,
so our comparisons for the back half of this year are more challenging, but we
are confident in continuing our momentum.”
And in the earnings
announcement, Cornell noted, “Even with average selling price deflation, our
consumer electronics business delivered a mid-single-digit comp sales increase.
New products like tablets are driving greater sales in electronics.”
For Wal-Mart
Stores as a corporation, total sales in the quarter were $108.6 billion, up 5.5
percent. Consolidated net income for the quarter was $3.8 billion, up 5.7
percent from the prior year.
