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Wal-Mart Posts Flat Q1

14 May, 2009 By: Chris Tribbey


No. 1 retailer Wal-Mart May 14 reported profits of just more than $3 billion for its first fiscal quarter of 2010 (ended April 30), flat compared to the same period a year ago.

The retailer, which did not break down revenue or profit from home entertainment or DVD, saw its net sales (more than $93 billion) drop less than 1% from the same period last year, mostly due to a decrease in international store sales.

“We’re pleased to report that fiscal year 2010 is off to a very good start,” said Wal-Mart president and CEO Mike Duke. “These results were achieved in the face of a very challenging global economy.   
“When economic conditions improve, we believe customers who shop Wal-Mart today will stay with us, because of the business improvements we’re making and continue to make. Across the company, we are building our brand by reducing costs, sharpening our merchandising and updating our stores.”

Tom Schoewe, Wal-Mart EVP and CFO, said second-quarter fiscal 2010 earnings per share are expected to be between 83 cents and 88 cents.

“Our guidance takes into account Wal-Mart’s strong underlying performance and the difficult economic environment. Plus, our U.S. businesses will be up against the economic stimulus checks in the second quarter last year,” he said.

Wal-Mart also has announced that it would no longer report monthly comparable store sales going forward.

In after hours trading, shares of the retailer were up 31% to $49.25.

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