Industry Intelligence

Wal-Mart Stores Inc. has reported net sales for the fourth quarter of fiscal 2012 of $122.3 billion, an increase of 5.8 percent from $115.6 billion in last year’s fourth quarter. Net sales included about $1.0 billion of negative impact from currency exchange rates. Before acquisitions, and on a constant-currency basis, net sales rose 4.5 percent to $120.9 billion.

Income from continuing operations attributable to Walmart for the quarter was $5.2 billion, a 3.4 percent increase from the $5.0 billion posted last year. Diluted earnings per share (EPS) from continuing operations attributable to Walmart for the fourth quarter were $1.51.

Consolidated net sales for fiscal year 2012 were $443.9 billion, an increase of 5.9 percent over fiscal year 2011. Net sales included about $4.7 billion of positive impact from acquisitions and around $4.0 billion of positive impact from currency exchange rates. Before acquisitions, and on a constant-currency basis, net sales increased 3.9 percent to $435.1 billion.

Income from continuing operations attributable to Walmart for fiscal 2012 was $15.8 billion, a 2.7 percent rise from the $15.4 billion posted last year. EPS for fiscal 2012 was $4.54 versus last year’s $4.18.

“Today, every segment of our business is stronger than it was a year ago, and we’re in a great position for fiscal year 2013,” said Mike Duke, president and CEO of Bentonville, Ark.-based Wal-Mart Stores Inc.

Continued Duke: “Our company leveraged expenses for both the quarter and the full year. In fact, Walmart has now leveraged operating expenses for two consecutive years. We have a relentless focus on the productivity loop to drive down costs and pass those savings on to customers. And as I look forward to our 50th anniversary this year, I see tremendous opportunities still ahead for our company and our shareholders.”

“Looking at our goals for the full fiscal year, we expect continued growth in sales and earnings,” added EVP and CFO Charles Holley.

Duke noted in particular the progress made during the quarter by Walmart U.S, which “reported positive comps of 1.5 percent for the fourth quarter, including positive comp traffic. This is now the second consecutive quarter of positive comp sales,” he observed. “Our price leadership is making a difference across the United States, as many families are settling into a new normal. Core customers remain cautious about their finances, and they rely on Walmart’s EDLP promise to help them manage through today’s economic challenges.”

“All three Walmart U.S. geographic units delivered positive comps, reinforcing that our plan is working and resonating with customers,” said Bill Simon, Walmart U.S. president and CEO. “Our stores have greater price leadership, broader assortment and improved on-shelf availability. The combination of these factors contributed to positive traffic. We invested in price in the fourth quarter and will continue to do so through this fiscal year, so we can pass savings on to customers."

Additionally, Walmart International and Sam’s Club turned in solid results.

Walmart International fourth-quarter net sales included about $2.4 billion related to acquisitions and about $1.0 billion of negative impact from currency exchange rates. Before acquisitions and on a constant-currency basis, net sales were $34.1 billion, representing an 8.5 percent increase over last year. Fourth-quarter net sales for Sam’s Club, excluding fuel, were $12.6 billion, a rise of 5.4 percent from last year.

Walmart International fiscal 2012 net sales included about $4.7 billion related to acquisitions for and about $4.0 billion of positive impact from currency exchange translation. Before acquisitions and on a constant-currency basis, net sales were $117.1 billion, representing a 7.2 percent increase from last year. Fiscal 2012 net sales for Sam’s Club, excluding fuel, came to $47.6 billion, an increase of 5.4 percent.

“Sam’s Club net sales were strong, and we managed our gross margin rate well in a competitive and inflationary pricing environment in the fourth quarter,” said Rosalind Brewer, Sam’s Club president and CEO. “Our entire organization is motivated to continue our top-line and comp-sales momentum. Our members continue to respond to key merchandising initiatives.”

Walmart operates 10,130 retail units under 69 banners in 27 countries and employs more than 2 million associates worldwide.