earnings were again flat for U.S. Walmart and Sam's Club stores — down at Walmarts and up slightly at Sam's Club. The company found reason for hope in international, neighborhood market and on-line sales. The City Wire reports.
The company's summary follows:
Wal-Mart Stores, Inc. (NYSE: WMT) today reported financial results for the second quarter ended July 31, 2014. Consolidated net sales for the second quarter were $119.3 billion, an increase of 2.8 percent over last year. This quarter included the negative impact of $696 million from currency exchange rate fluctuations. On a constant currency basis,1 net sales would have increased 3.4 percent to $120.0 billion. Membership and other income increased 8.2 percent versus last year. Total revenue was $120.1 billion, an increase of approximately $3.3 billion, or 2.8 percent. Consolidated net income attributable to Walmart was $4.1 billion, an increase of 0.6 percent. Diluted earnings per share from continuing operations attributable to Walmart were $1.21, or 1.6 percent below last year's $1.23.2
“I’m pleased with our solid earnings per share performance,” said Doug McMillon, Wal-Mart Stores, Inc. president and CEO. “As it relates to the positives from the quarter, I’m encouraged by the performance of our International business, our Neighborhood Market sales in the U.S. and by our e-commerce growth. As it relates to our challenges in the quarter, we wanted to see stronger comps in Walmart U.S. and Sam's Club, but both reported flat comp sales. Stronger sales in the U.S. businesses would've also helped our profit performance."
Walmart is continuing to invest in enhancing its e-commerce capabilities and McMillon pointed out the need to move quickly to serve customers more effectively.
“We see opportunities to improve in merchandising, pricing and store level service in our supercenters, and we are working to close those gaps," added McMillon. "Our investments in e-commerce and mobile are very important, as the lines between digital and physical retail continue to blur. Our customers expect a seamless experience, and we're working to deliver that for them around the world."