Wal-Mart misses by $0.05, misses on revs; guides Q2 EPS below consensus
Reports Q1 (Apr) earnings of $1.10 per share, $0.05 worse than the Capital IQ Consensus of $1.15; revenues rose 0.8% year/year to $114.17 bln vs the $115.6 bln consensus.
"Walmart's first quarter net sales increased 0.8 percent over last year. Like other retailers in the United States, the unseasonably cold and disruptive weather negatively impacted U.S. sales and drove operating expenses higher than expected," said Doug McMillon, Wal-Mart Stores, Inc. president and chief executive officer. "Walmart's underlying business is solid, and I'm confident in our long-term strategies. We'll continue to invest in price and enhance our service to improve sales," added McMillon. "We remain focused on growth across the enterprise, especially in small formats like Neighborhood Market in the U.S."
- U.S. Q1 comparable store sales relatively flat (down 8 bps) vs flat guidance; Sam's Club Q1 comparable store sales of -0.5% vs flat guidance (excluding fuel).
- Severe weather adversely impacted comp sales by ~20 basis points. Comp sales for the Neighborhood Market format rose ~5 percent.
- Severe weather in the U.S. businesses negatively impacted EPS by ~ $0.03. Additionally, the company's effective tax rate for the quarter was higher than anticipated.
- E-commerce sales globally increased ~ 27 percent for the quarter.
"Walmart's first quarter net sales increased 0.8 percent over last year. Like other retailers in the United States, the unseasonably cold and disruptive weather negatively impacted U.S. sales and drove operating expenses higher than expected," said Doug McMillon, Wal-Mart Stores, Inc. president and chief executive officer. "Walmart's underlying business is solid, and I'm confident in our long-term strategies. We'll continue to invest in price and enhance our service to improve sales," added McMillon. "We remain focused on growth across the enterprise, especially in small formats like Neighborhood Market in the U.S."