Wal-Mart Earnings Jump 10% in Q1

May 17, 2012
U.S. sales up 5.9% while international market increased 15%

Wal-Mart posted a surge in first quarter earnings on May 17, rebounding on account of steady U.S. sales growth and strong contributions from Mexico after a fall in the previous period.

Net income for the period to April 27 rose 10.1% from a year earlier to $3.74 billion, while earnings per share for the company, the world's largest retailer, at $1.10 were up 13.4%, better than analysts had forecast.

Net sales were up 8.6% to $112.3 billion, with the main domestic retailing arm Wal-Mart US contributing $66.3 billion (up 5.9%) and the international arm adding $32 billion, up 15%. The Sam's Club membership sales outlets added $13.9 billion.

Wal-Mart credited sales growth in Mexico, where it has its largest number of stores outside the United States but also faces bribery allegations, Brazil and Britain for the strongest growth internationally.

The retail behemoth came under pressure in the first quarter after scrutiny in the United States and Mexico over allegations it had paid $24 million in bribes in Mexico to help aid its rapid expansion in that market in the 2000s.

Wal-Mart said the allegations are more than six years old and it has already taken action to prevent any possible recurrence.

In the United States, comparable store sales grew a steady 2.6%, better than the expected 2%.

"In a highly competitive retail environment, Wal-Mart U.S. is increasing price separation across categories and driving increased traffic to both the grocery and general merchandise areas of our stores," said chief executive Mike Duke.

"Wal-Mart International delivered strong sales growth in the first quarter, and operating income grew faster than sales," he added.

Copyright Agence France-Presse, 2012

Popular Sponsored Recommendations

Top 3 Ways AI is Transforming Manufacturing Operations

Feb. 17, 2024
Unlock the power of Industry 4.0 with AI and IoT. Explore how real-time data and automation are reshaping manufacturing, driving efficiency and quality to new heights. Dive into...

What Does Agility Look Like for Today's Auto Industry?

Dec. 4, 2023
Without modern technologies, enterprises aren't able to fully analyze the risks and respond to ongoing supply chain issues and semiconductor shortages.

How to Build a Predictive Maintenance Program: Lessons Learned from LSB Industries’ Success

Dec. 21, 2023
Register today and join this webinar to gain insight on best practices for setting up a predictive maintenance program from industry experts.

Shop Floor Optimization Solves Manufacturers’ Labor Challenges

Dec. 27, 2023
Read this FAQ to learn how mid-market manufacturers can use technology to optimize their shop floors and make better use of their available labor forces.

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!