Wal-Mart earned $0.76 per share in the first quarter last year. Net sales for the first quarter were $93.471bn, a decrease of 0.6% from $94.042bn in the first quarter last year. Without the negative impact of currency exchange rates, equal to $4.836bn, net sales for the quarter increased 4.5% to approximately $98.307bn on a constant currency basis. In addition, this year’s first quarter contained one less selling day than the same quarter last year, because 2008 was a leap year.
Income from continuing operations for the first quarter of $3.030bn was relatively flat compared to the same period last year.
“We’re pleased to report that fiscal year 2010 is off to a very good start,” said Mike Duke, Wal-Mart Stores Inc president and CEO. “These results were achieved in the face of a very challenging global economy. When economic conditions improve, we believe customers who shop Wal-Mart today will stay with us, because of the business improvements we’re making and continue to make. Across the company, we’re building our brand by reducing costs, sharpening our merchandising and updating our stores.
“Customers trust Wal-Mart. As a result of the increasing shift to value, they have long-term loyalty to the Wal-Mart brand because we save them money.”
Reported International sales were negatively affected by currency translations to the US dollar equal to $4.836bn. On a constant currency basis (assuming currency exchange rates remained the same as the prior year), international sales increased 9.1% to $26.099bn in the first quarter compared to the same quarter last year.
Reported international operating income for the three months ended 30 April 2009 was also negatively affected by $252m as a result of currency translations to the US dollar. On a constant currency basis (assuming currency exchange rates remained the same as the prior year), international operating income increased 7.8% to $1.132bn in the first quarter.
“We expect earnings per share from continuing operations for the second quarter of fiscal year 2010 to be between $0.83 and $0.88,” said Tom Schoewe, Wal-Mart Stores Inc executive vice president and chief financial officer. “Our guidance takes into account Wal-Mart’s strong underlying performance and the difficult economic environment. Plus, our US businesses will be up against the economic stimulus checks in the second quarter last year.
“The company is in a great financial position, and we’re proud of our strong balance sheet and the free cash flow generated by our operations. We’re doing an excellent job taking care of our customers and we’ll continue to help them save money so they can live better long after the economy recovers.”
Source: Wal-Mart
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