Walmart gains share in Q3

Wal-Mart has posted Q3 results, stating that net sales were USD98.67 billion, a 1.1% increase. On a constant currency basis, net sales for the third quarter would have been USD2.62 billion higher, increasing 3.8% to approximately USD101.28 billion. Income from continuing operations increased to USD3.25 billion from USD3.03 billion. Mike Duke, Walmart President and Chief Executive Officer, said: "Increased productivity and improved inventory management led to a better customer experience and contributed to our strong financial performance. The sales environment continued to be difficult this quarter, but customer traffic is up throughout the company. We gained market share, especially in the United States, the United Kingdom and Mexico, as customers around the globe continued to count on Walmart for quality and low prices. We are encouraged by both our traffic and market share gains across the company. Few companies have the momentum or opportunity that Walmart has around the world."  In Q3, Walmart US saw sales increase 1.2% to USD61.81 billion, with Sam’s Club seeing sales slip 0.7% to USD11.55 billion. Operating income was up 6.9% to USD4.52 billion at Walmart US, up 5.6% to USD39 million at Sam’s and down 5.3% to USD1.119 billion in International. International sales were up by 1.6% to USD25.31 billion. On a constant currency basis, International sales increased 12.1% to USD27.92 billion. Comparable store sales (excluding fuel) were down 0.5% at Walmart US and up 4.1% at Sam’s Club. During the third quarter, Walmart US delivered very strong operating performance, fuelled by productivity initiatives and efficient inventory management. Comparable store sales were below expectations, but continued increases in customer traffic and market share gains, especially in grocery and health and wellness, “underscore the strength of the underlying business”. During the third quarter, Sam's Club upgraded and added memberships, driven by its eValues programme. Comparable club sales were within its guidance, due to strong performance in food, consumables and health and beauty aids.  International remains Walmart's fastest-growing segment, with strong sales performances in the United Kingdom, Mexico and Brazil. Including the Chilean acquisition, sales increased 12.1% and operating income increased 9.2%, both on a constant currency basis. Price leadership and strong underlying operating performance “continue to drive market share gains in every major market.” Sales in its Canadian operations grew 5.2% over last year, primarily due to the Supercentre expansion programme. The retailer now operates 69 Supercentres in Canada, with plans to have 83 by the end of the fiscal year. It delivered a 1.2% comparable store sales increase with a shift towards food and consumables.  Both customer traffic and overall sales growth at Wal-Mart’s Japanese subsidiary, Seiyu, continued to increase in the third quarter, showing a 1.9% increase year-on-year. The performance was despite deflationary pressure, which negatively affected average transaction size. Wal-Mart continued a rapid pace of opening stores in China, with 10 new stores in the third quarter, now with a store count of 266, including TrustMart stores. Operations in the country delivered a 0.7% positive comparable sales growth over the third quarter of last year, despite continued deflation in core food categories such as pork and seafood.  www.planetretail.net