Walmart profit rises 2.6 percent during third quarter

[News_Editor]

Walmart profit rises 2.6 percent during third quarter

2010-11-17 00:44:09 GMT+7 (ICT)

BENTONVILLE, ARKANSAS (BNO NEWS) -- Walmart Inc. on Tuesday announced its results for the third quarter of 2011 which reflect a 2.6 percent increase in its net sales and a 9.3 percent rise in its International division.

Net sales for the period were $101.2 billion in contrast with the $98.7 billion in the third quarter last year. Walmart International continued to drive growth for the company after registering $26.8 billion in net sales due to the growing demand from countries such as Mexico, Brazil, China and Canada.

"Walmart performed well in the third quarter, and we delivered solid earnings per share growth for our shareholders," said Mike Duke, Wal-Mart Stores, Inc. president and chief executive officer. "Our company now has delivered four consecutive quarters of operating expense leverage, and we continue to grow operating income faster than sales."

Income from continuing operations attributable to Walmart for the period was $3.4 billion and slight increase from the $3.2 billion registered in the third quarter last year. Walmart reported third quarter diluted earnings per share (EPS) of $0.95, last year it reported $0.82 per share. The company's EPS for the period included a tax benefit of $191 million, which is approximately $0.05 cents per share.

"I'm pleased that we increased our full-year earnings per share guidance to reflect the tax benefit from the third quarter and our expectations for our business performance in the fourth quarter," Duke added.

The international market continues to be an important factor in Walmart's finances as it is expanding its reach through new units and multi-channel initiatives worldwide. The company added almost 10 million square feet of retail space this quarter, with 37 percent of the square footage growth in Walmart International.

Walmart U.S. net sales were relatively flat for the third quarter, $62.17 billion, when compared with the $62.21 billion from the previous year. However, the strong sales growth from Mexico, Brazil, Japan and China, as well as the Sam’s Club sales (which were up by 2.7 percent) helped the company to register an increment on its overall net sales.

"Our International business continues to deliver impressive results, with sales up more than nine percent," Duke said. "We also were pleased with the ongoing sales momentum at Sam's Club and expect that momentum to continue in the fourth quarter. Our Walmart U.S. business is on the right track, with third quarter comp sales within guidance and operating income growing faster than sales.â€

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