Wal-Mart Stores, Inc. net sales for the month of October were $25.710 billion compared to $23.024 billion last year, an 11.7% increase. Comparable store sales for the period were up 0.5%.
Results as follows (dollars in billions):
4 Weeks Ended 39 Weeks Ended
Percent Percent
10-27-2006 10-28-2005 Change 10-27-2006 10-28-2005 Change
Wal-Mart Stores $16.583 $15.397 7.7% $162.036 $149.557 8.3%
Sam's Club 3.110 3.073 1.2% 30.432 29.087 4.6%
International 6.017 4.554 32.1% 55.354 42.445 30.4%
Total Company $25.710 $23.024 11.7% $247.822 $221.089 12.1%
Comparable store sales for the periods ending October 27, 2006, and October 28, 2005, were as follows:
4 Weeks Ended 39 Weeks Ended
10-27-2006 10-28-2005 10-27-2006 10-28-2005
Wal-Mart Stores 0.3% 4.3% 2.2% 3.5%
Sam's Club 2.0% 4.9% 2.9% 3.6%
Total U.S. 0.5% 4.4% 2.3% 3.5%
The 32.1% increase for the four-week period and the 30.4% increase for the 39-week period in International's net sales include sales from the consolidation of Seiyu and Wal-Mart Central America and the acquisition of 139 units in Southern Brazil. These entities added 17.7 and 18.1 percentage points to the net sales increases in International for the four-week and 39-week periods, respectively.
The Company continues to see a negative impact on comparable store sales from the hurricanes last year and the extensive remodeling program, according to Tom Schoewe, Wal-Mart Stores, Inc. executive vice president and chief financial officer.
“The U.S. Wal-Mart stores that were not impacted by the 2005 hurricanes had comps of approximately 1.7 percent in October,” said Schoewe. “Last year, we saw a positive impact on comps from customers who restocked their homes after the hurricanes and this continued through the end of the fiscal year. The impact on comps from hurricanes will continue, but will soften somewhat during the next three months.
“Our remodeling efforts in the Wal-Mart Stores division wrap up during the next two weeks to ensure there is no disruption for our customers during the holiday shopping period,” Schoewe explained. “Remodeling activities will begin again in late January and will continue into the next fiscal year.”
Trends for the Company's October sales were similar to September, with food and consumables outpacing general merchandise.
“As in September, apparel sales, particularly in women's apparel, were softer than expected,” Schoewe said. “We're continuing to work longer term to improve the balance between fashion and core essentials in our stores. Short-term, we're working to maximize holiday opportunities by focusing on leveraging inventory.”
Schoewe added that the Company's aggressive “rollback” advertising and marketing programs should reinforce Wal-Mart's price leadership position to customers in the fourth quarter.
“Price rollbacks on key toys that went into effect in mid-October generated significant lift in unit volume,” Schoewe explained. “In electronics, another dynamic category for the holiday season, we have several initiatives planned to drive holiday sales. We have expanded our brand offerings, improved our product presentations in the store, reinforced our value pricing and doubled the assortment of accessories.”
The Company's pharmacy sales were strong again in October, said Schoewe. Pharmacies in Wal-Mart, Sam's Club and Neighborhood Markets now offer the $4 generics program on 314 generic prescriptions in 27 states.
The German Federal Cartel Office completed its competition review of the sale of Wal-Mart Germany to Metro AG, allowing the Company to close the transaction October 31.
“During the transition period, we appreciate all the hard work of our associates and how they have continued to serve our customers in Germany,” added Schoewe.
Comparable store sales in the U.S. for the November four-week period are estimated to be approximately flat.
