Summary
Walmart Inc. reported a solid first quarter for fiscal year 2011, with net sales increasing by 6.0% to $99.1 billion, driven by global expansion and favorable currency exchange rates. Net income attributable to Walmart also saw a healthy increase of 10.1% to $3.32 billion, or $0.88 per diluted share, up from $3.02 billion, or $0.77 per diluted share, in the prior year. The company demonstrated effective cost management, with operating expenses growing at a slower rate than net sales, leading to a 10.6% increase in operating income. Key operational highlights include robust growth in the Walmart International segment, up 21.4% in net sales, bolstered by new store openings and currency impacts. While Walmart U.S. saw a modest 1.1% increase in net sales, comparable store sales experienced a slight decline of 0.8%, reflecting challenges such as higher unemployment rates and competitive pressures. Sam's Club showed resilience with a 4.6% increase in net sales, largely influenced by fuel prices and strength in specific categories. Despite a significant swing to negative free cash flow in the quarter ($1.59 billion compared to positive $964 million in the prior year) due to increased inventory investment, the company maintained its dividend payout and continued its share repurchase program, underscoring a commitment to returning value to shareholders.
Financial Highlights
48 data points| Revenue | $99.10B |
| Cost of Revenue | $74.62B |
| Gross Profit | $24.48B |
| SG&A Expenses | $19.46B |
| Operating Income | $5.74B |
| Interest Expense | $455.00M |
| Net Income | $3.30B |
| EPS (Basic) | $0.29 |
| EPS (Diluted) | $0.29 |
| Shares Outstanding (Basic) | 11.29B |
| Shares Outstanding (Diluted) | 11.34B |
Key Highlights
- 1Net sales increased by 6.0% to $99.1 billion for the first quarter ended April 30, 2010.
- 2Consolidated net income attributable to Walmart rose by 10.1% to $3.32 billion ($0.88 per diluted share) from $3.02 billion ($0.77 per diluted share) in the prior year.
- 3Operating income grew by 10.6% to $5.77 billion, outpacing net sales growth, indicating effective cost management.
- 4Walmart International segment experienced strong net sales growth of 21.4%, significantly boosted by currency exchange rate fluctuations.
- 5Walmart U.S. comparable store sales declined by 0.8%, reflecting challenging economic conditions and competitive pressures.
- 6Free cash flow turned negative in the quarter at $(1.59) billion, primarily due to increased inventory investment, compared to positive $964 million in the prior year.
- 7The company announced a new $15 billion share repurchase program, replacing the previous one, demonstrating continued commitment to shareholder returns.