Wal-Mart Stores, Inc. reported net sales for the month of June were $21.47 billion compared to $20.23 billion last year, an increase of 6.1%. Comparable store sales increased 1.1%.
5 Weeks Ended 22 Weeks Ended Percent Percent 6-30-2006 7-1-2005 Change 6-30-2006 7-1-2005 Change Wal-Mart Stores $21.470 $20.230 6.1% $91.839 $84.573 8.6% SAM's CLUB 4.054 3.898 4.0% 17.278 16.291 6.1% International 7.596 5.865 29.5% 31.812 25.196 26.3% Total Company $33.120 $29.993 10.4% $140.929 $126.060 11.8%
Comparable sales for the periods ending June 30, 2006, and July 1, 2005,
were as follows:
5 Weeks Ended 22 Weeks Ended 6-30-2006 7-1-2005 6-30-2006 7-1-2005 Wal-Mart Stores 1.1% 4.9% 2.6% 3.4% SAM's CLUB 1.3% 3.8% 3.5% 2.5% Total U.S. 1.2% 4.7% 2.7% 3.3%
The 29.5% increase for the five-week period and the 26.3% increase for the 22-week period in International’s net sales includes sales from the consolidation of Seiyu and Wal-Mart Central America and the acquisition in Southern Brazil. These entities added 17.6 and 17.0 percentage points to the net sales increases in International for the five-week and 22-week periods, respectively.
“Despite various pressures on U.S. consumers, Wal-Mart Stores, Inc. added more than $3 billion in sales during the five-week period in June,” said Tom Schoewe, executive vice president and chief financial officer of Wal-Mart Stores, Inc. “Average ticket continues to drive our comp, as traffic was down during the month. Several factors contributed to the June comp of 1.2 percent.”
Schoewe said Wal-Mart continues to see customers consolidating their trips, as company research among shoppers points to an increasing concern about the rise in gas prices over last year.
“The priority in spending by our customers is on food and consumables,” Schoewe said. “In June, we reinforced Wal-Mart’s low prices and value throughout the store by highlighting rollback prices on approximately 500 products through national advertising and increased signage. The rollback ads emphasized summer essentials and included food, beverages and health and beauty items.
“In addition, cooler trends in some regions of the country did result in softer sales of seasonal merchandise for the start of summer,” he added.
Schoewe said that the estimate for comparable sales in the U.S. for the July four-week period is in the 1 to 3 percent range.
“Based on the results of the first two months, we estimate that the earnings per share for the second quarter of fiscal 2007 will be within our previously stated guidance of $0.70 to $0.74,” he said.