Wal-Mart Stores, Inc. reported same-store sales rose 5.0% in April. Excluding fuel, comps were up 5%. Total company sales  increased 2.4% to $29.9 billion from $29.2 billion.


 


Walmart U.S.


 


Comparable store sales at Walmart U.S. increased 5.9 percent during the April period, due in part to the Easter calendar shift. Comparable store sales for the combined March-April nine-week period increased 2.9 percent, driven by an acceleration of traffic and strength in seasonal and discretionary categories. The 13-week comparable result was 3.6 percent, exceeding Walmart's expectations for the period.


 


“Walmart U.S. comparable store sales in April continued to show the underlying strength of our business,” said Eduardo Castro-Wright, vice chairman, Wal-Mart Stores, Inc. “We gained new customers, improved our market share position and found that when customers had more money to spend, they spent it more often at Walmart.”


 


Grocery, health and wellness, hardlines, entertainment and home had positive comparable store sales growth in the April period. Comparable store traffic has increased for seven consecutive reporting periods, and was higher in April than in any of the previous six periods. Customers responded well to Easter seasonal offerings, resulting in high single-digit comps for seasonal products compared to the Easter period last year.


 


“The initiatives we have undertaken to improve the shopping experience have driven our strong performance during the last 18 months, and our stores are now converted and ready for summer,” Castro-Wright said. “We are facing challenging comparisons to last year's second quarter, which benefitted from the economic stimulus checks and a higher rate of food inflation. We expect this will be offset somewhat by higher customer traffic and improved assortments.”


 


Sam's Club


 


Sam's Club's sales during the April period continued to be driven by member demand for fresh food and consumables. The Easter shift unfavorably affected comparable club sales, as Sam's was closed for Easter Sunday, losing one selling day compared to last year. Comparable club sales for the March-April nine-week period were 3.5 percent, excluding fuel.


 


Strong categories during the April period included produce, bread and pastry, floral, pet supplies and office electronics. Discretionary categories, such as jewelry, patio and furniture remain soft. The decline in certain commodity prices versus last year contributed to softer sales of some dry grocery products.


 


“Both Business and Advantage members increased their visits to our clubs this month, despite the closure on Easter Sunday,” said Brian Cornell, Sam's Club president and CEO. “Our members continue to appreciate the quality, value and flexibility that Sam's Club provides. Business members in particular appreciate how we help them manage their cash flow, since we do not have minimum order requirements. Our Advantage members responded to our Taste of Spring event to purchase exceptional fresh produce and meat for their Easter dinners.”


 


Lower fuel sales, when compared to the prior year, negatively impacted comparable club sales by 5.4 percentage points for the April period.


 


Wal-Mart International


 


“Customers around the world are responding to basics such as fresh food, consumables and grocery. They are finding the value they're searching for in our stores and clubs,” said Doug McMillon, president and CEO of Wal-Mart International. “Our leadership is focused on increasing productivity and managing expenses to ensure our ability to deliver value.”


 


Sales performance for each country is discussed on a constant currency basis, excluding any impact from changes in exchange rates. As expected, those countries with significant Easter sales benefited due to the calendar shift.


 


It was another strong month for ASDA in the United Kingdom. Comparable store sales were strong, driven by greater customer traffic during the Easter season. Meat and grocery were again the best performing categories, while 200 new fresh product lines were launched during April. In non-food, George apparel sales continued to grow ahead of the market, with women's wear the strongest performer.


 


At Wal-Mart de Mexico, total sales growth in the April period was 15.8 percent and comparable store sales increased 7.8 percent. The strong performance was driven by an increase in customer count and average ticket at self-service formats. Bodega Aurrera and Walmart were the best performing in terms of comparable store sales and traffic, while Superama and Sam's Club had the strongest increases in average ticket.


 


During the past two weeks, the H1N1 outbreak has affected operations at Walmex. The company worked with government health authorities to put in place measures designed to ensure the health and safety of customers and associates at all self-service stores. The Health Secretariat worked with Walmex to install 40 Mobile Medical Units in parking lots at key Mexico City locations. Walmex activated its Continuous Operations Center to ensure that all its 1,221 retail units remained in stock. Home office associates worked from home.


 


Total sales at Wal-Mart Canada increased in the high single digits for the period, while comparable store sales were in the low single digits. Overall sales growth came from continued strengthening of food and consumable categories. The Canadian team is focused on executing the supercentre strategy, as customers continue to focus on necessities and seek out value.


 


In Brazil, real sales growth was in the low double digits and real comparable store sales were in the high single digits. Sales were impacted positively by the Easter season, which contributed to both higher average ticket and customer count. Hypermarkets and soft discounts posted comparable store sales of high single to low double digits, with the best performances in fresh, perishables and pharmacy.


 


In Japan, comparable store sales were positive in the low single digits. Grocery continues to show strength, as well as the consumables categories where Seiyu has instituted every day low prices. Sales of apparel and general merchandise continue to be down because customers are limiting their discretionary spending.


 


In China, comparable store sales were negative in low single digits at both Wal-Mart and Trust-Mart. A contracting economy in China is causing caution among customers, resulting in a decrease in traffic. Deflation in food and consumables impacted average ticket. At Wal-Mart, however, average ticket benefited from a variety of seasonal events, which helped improve basket size.


 


Policy Change for Reporting Comparable Store Sales


 


“At the start of this fiscal year, Wal-Mart revised its approach to providing guidance for sales. We went from providing guidance for monthly sales to forecasting a guidance range for our U.S. businesses for the full 13-week period,” said Tom Schoewe, executive vice president and chief financial officer for Wal-Mart Stores, Inc. “Moving forward, we will no longer report monthly sales. We will provide comparable store sales results on a 13-week basis, along with guidance for the upcoming 13-week period. And, we will release this information during our scheduled quarterly earnings calls.


 


“Wal-Mart was built on a foundation that manages for long-term success,” Schoewe said. “This decision aligns investors with the long-term view we take to build shareholder value. We feel this also will reduce the intra-period volatility related to events such as calendar shifts. Reporting sales quarterly also places us in line with most other large retailers.”


 


 


(NYSE: WMT) reported net sales for the four-week and 13-week periods ending May 1, 2009, and May 2, 2008, as follows (dollars in billions).


 


                                Net Sales                     Net Sales


                       4 Weeks Ended      Percent    13 Weeks Ended    Percent


                    5/1/2009    5/2/2008  Change   5/1/2009  5/2/2008  Change


 


    Walmart U.S.    $19.326    $17.944     7.7%     $63.147  $59.659    5.8%


    International     7.065      7.599    -7.0%      21.614   24.333  -11.2%


    Sam's Club        3.462      3.618    -4.3%      11.316   11.272    0.4%


      Total Company $29.853    $29.161     2.4%     $96.077  $95.264    0.9%


 


 


 


On a constant currency basis (assuming exchange rates remained the same as the prior year), International sales increased 13.0 percent in the April period. With a 20.0-percent impact from currency exchange rates, reported sales decreased 7.0 percent in the International segment.


 


Comparable store sales for the four-week and 13-week periods ending May 1, 2009, and May 2, 2008, appear below.


 


                            Four Weeks Comparable Store Sales


                  Without Fuel           With Fuel          Fuel Impact


                5/1/2009 5/2/2008   5/1/2009  5/2/2008  5/1/2009  5/2/2008


 


    Walmart U.S.  5.9%     2.5%       5.9%       2.5%     0.0%       0.0%


    Sam's Club    0.3%     6.7%      -5.1%       9.6%    -5.4%       2.9%


      Total U.S.  5.0%     3.1%       4.0%       3.7%    -1.0%       0.6%


 


 


                           Thirteen Weeks Comparable Store Sales


                   Without Fuel          With Fuel          Fuel Impact


                5/1/2009 5/2/2008   5/1/2009  5/2/2008  5/1/2009  5/2/2008


 


    Walmart U.S.  3.6%     1.9%       3.6%       1.9%     0.0%       0.0%


    Sam's Club    4.2%     2.8%      -0.5%       5.6%    -4.7%       2.8%


      Total U.S.  3.7%     2.0%       2.9%       2.5%    -0.8%       0.5%


 


 


Wal-Mart will report results for the first quarter of fiscal year 2010 on May 14, 2009, before the opening of trading on the New York Stock Exchange. The company expects to report total net sales for the fiscal quarter ended April 30, 2009 of approximately $93 billion, which includes an impact from currency exchange rates.


 


 


Wal-Mart will report earnings for the first quarter of fiscal year 2010 on May 14, at which time it will provide a comparable store sales forecast for the next 13-week period, from May 2 through July 31, 2009.