Summary
Walmart Inc. reported solid financial results for the quarter ending October 31, 2009, demonstrating resilience amidst economic challenges. Net sales saw a modest increase, driven by customer traffic and global expansion, although impacted by currency fluctuations. Profitability remained strong, with operating income growing at a faster rate than net sales, a testament to effective cost management and improved gross margins across all segments. The company also highlighted strong operational execution, including effective inventory management that contributed to a significant increase in free cash flow. Key financial health indicators remained robust. The company maintained a healthy balance sheet, with significant investments in property and equipment for growth. While short-term borrowings saw an increase, overall leverage ratios remained within manageable levels. Walmart continued its commitment to shareholder returns through consistent dividend payments and an active share repurchase program. Despite ongoing legal proceedings and economic uncertainties, the company's performance suggests a stable and well-managed operation.
Financial Highlights
48 data points| Revenue | $98.67B |
| Cost of Revenue | $73.92B |
| Gross Profit | $24.75B |
| SG&A Expenses | $20.02B |
| Operating Income | $5.44B |
| Interest Expense | $442.00M |
| Net Income | $3.14B |
| EPS (Basic) | $0.27 |
| EPS (Diluted) | $0.27 |
| Shares Outstanding (Basic) | 11.55B |
| Shares Outstanding (Diluted) | 11.58B |
Key Highlights
- 1Consolidated net sales increased 1.1% to $98.7 billion for the third quarter of fiscal 2010 compared to the prior year, with Walmart U.S. showing a 1.2% increase.
- 2Operating income for the third quarter of fiscal 2010 increased by 5.7% to $5.6 billion, outpacing the net sales growth and indicating effective cost management.
- 3Diluted earnings per share attributable to Walmart were $0.84 for the third quarter, an increase from $0.80 in the prior year's quarter.
- 4The company generated $3.555 billion in free cash flow for the nine months ended October 31, 2009, a significant increase from $2.252 billion in the prior year, primarily due to improved inventory management.
- 5Walmart U.S. segment operating income increased by 6.9% to $4.5 billion for the quarter, driven by effective merchandising and inventory management.
- 6The International segment's net sales increased by 1.6% to $25.3 billion, despite a $2.6 billion unfavorable impact from currency exchange rates.
- 7The company declared dividends of $1.09 per share for fiscal 2010, an increase of 15% over fiscal 2009.