10-QPeriod: Q1 FY2012

Walmart Inc. Quarterly Report for Q1 Ended Apr 30, 2011

Filed June 3, 2011For Securities:WMT

Summary

Walmart Inc. reported solid revenue growth for the first quarter of fiscal year 2012, with net sales reaching $103.4 billion, a 4.4% increase year-over-year. This growth was primarily driven by the Walmart International segment, which saw an 11.5% increase in net sales, benefiting from favorable currency exchange rates and expansion activities. The Walmart U.S. segment experienced modest growth of 0.6% in net sales, while Sam's Club demonstrated strong performance with a 9.4% increase in net sales, largely due to robust comparable club sales. Profitability showed a slight improvement, with operating income rising by 2.8% to $5.9 billion. Diluted earnings per share (EPS) stood at $0.97, up from $0.87 in the prior year's comparable period, reflecting effective cost management and a favorable tax rate. The company also continued its commitment to returning value to shareholders, declaring a dividend of $1.46 per share and actively repurchasing shares. Despite positive operational performance, the company faces ongoing litigation risks, particularly concerning wage-and-hour and gender discrimination class actions, although management believes these will not materially affect financial condition.

Financial Highlights

49 data points
Beta

Revenue

$103.42B

24.4% Gross Margin

Net Income

$3.40B

3.3% Net Margin

EPS (Diluted)

$0.32

Total Assets

$186.22B

Cash & Equivalents

$9.40B

Free Cash Flow

-$415.00M

Financial Statements
Beta
Revenue$103.42B
Cost of Revenue$78.18B
Gross Profit$25.24B
SG&A Expenses$20.12B
Operating Income$5.90B
Interest Expense$491.00M
Net Income$3.40B
EPS (Basic)$0.32
EPS (Diluted)$0.32
Shares Outstanding (Basic)10.49B
Shares Outstanding (Diluted)10.54B

Key Highlights

  • 1Net sales increased by 4.4% to $103.4 billion, driven by strong performance in Walmart International and Sam's Club.
  • 2Operating income grew by 2.8% to $5.9 billion, indicating effective cost management across segments.
  • 3Diluted EPS rose to $0.97 from $0.87 in the prior year's comparable period.
  • 4Walmart International segment net sales increased by 11.5%, significantly aided by favorable currency exchange rates ($1.3 billion).
  • 5Sam's Club reported a 9.4% increase in net sales, boosted by an 8.8% rise in comparable club sales.
  • 6The company declared an annual dividend of $1.46 per share, representing a 21% increase over the previous fiscal year.
  • 7Capital expenditures for property and equipment were $2.39 billion, with full fiscal year 2012 expected to be between $12.5 billion and $13.5 billion (excluding acquisitions).

Frequently Asked Questions

Walmart's net sales for the three months ended April 30, 2011, increased by 4.4% to $103.4 billion compared to the same period in the prior year. This growth was driven by a combination of comparable store sales increases, expansion activities, and favorable currency exchange rates, particularly in the Walmart International segment.

Operating income for the quarter was $5.9 billion, a 2.8% increase year-over-year. Diluted earnings per share (EPS) attributable to Walmart were $0.97, up from $0.87 in the prior year's comparable period. The company also managed its operating expenses effectively, with expenses as a percentage of net sales remaining relatively stable.

The Walmart International segment was a significant growth driver, with net sales up 11.5%, benefiting from expansion and a $1.3 billion positive impact from currency fluctuations. Sam's Club also showed strong performance, with net sales up 9.4% driven by an 8.8% increase in comparable club sales. Walmart U.S. experienced more modest growth, with net sales up 0.6%, impacted by a 0.9% decrease in comparable store sales primarily due to lower customer traffic.

Capital expenditures for property and equipment totaled $2.39 billion for the quarter. Walmart expects full-year fiscal 2012 capital expenditures to range between $12.5 billion and $13.5 billion, excluding acquisitions. The company primarily funds its operations and expansion through cash flows from operating activities, supplemented by long-term debt and short-term borrowings. The company also continues to return capital to shareholders through dividends and share repurchases.