Wal-Mart Reports Record Sales and Earnings for Quarter and Year
PR News Wire via Dow Jones
BENTONVILLE, Ark., Feb. 24 /PRNewswire/ -- Wal-Mart Stores, Inc. (NYSE: WMT)
reported record earnings and sales for the quarter ended January 31, 1998. Net
income for the quarter was $1,287,000,000 compared to $1,095,000,000 for the
year ended January 31, 1997. Earnings per share were $0.57 up 19% from the
$0.48 per share reported in the same prior year quarter. Total sales were
$35,386,000,000, an increase of 15% over the similar prior year quarter.
Net sales for the year ended January 31, 1998, were $117,958,000,000, an
increase of 12% over the prior fiscal year. Net income for the fiscal year
increased 15% to a record $3,526,000,000, or $1.56 per share, as compared with
$3,056,000,000, or $1.33 per share, for the prior fiscal year.
David Glass, President and CEO said, "I am happy to report our 27th
consecutive year of record sales and earnings growth. Each of our divisions
grew sales and earnings while improving their return on assets. International
profits rose more than ten fold while Wal-Mart, Sam's and McLane all increased
earnings at a rate in excess of their sales growth. Inventory in our domestic
retail operating units actually declined on a double-digit increase in sales.
With the momentum we have, I am confident that fiscal 1999 will be another
record year."
Sales were as follows:
(Dollars in millions)
Quarter ended Year ended
Jan. 31, Percent Jan. 31, Percent
1998 1997 Change 1998 1997 Change
Wal-Mart $24,731 $22,036 12% $83,820 $74,840 12%
Sam's Club 5,844 5,466 7 20,668 19,785 4
McLane 1,849 1,700 9 5,953 5,232 14
International 2,962 1,654 79 7,517 5,002 50
Total Company $35,386 $30,856 15% $117,958 $104,859 12%
Total company comparable sales for the quarter were up 6.9%. This is
represented by a 7.1% increase for the Wal-Mart stores and a 6.1% increase for
Sam's.
Wal-Mart Division:
For the fourth quarter, the Wal-Mart division, including Supercenters, had an
operating profit (profit before interest, unallocated corporate expenses, and
income taxes) of $2,148,000,000 versus $1,888,000,000 for the same prior year
quarter, a 14% increase. Fiscal year operating profit for the division was
$6,419,000,000, a 16% increase, compared with the $5,548,000,000 reported last
year.
Sam's Division:
The Sam's division recorded operating profit for the quarter of $307,000,000,
an increase of 12% compared to $274,000,000 for the similar prior year quarter.
Sam's operating profit for year ended January 31, 1998, was $950,000,000, an
increase of 10% over the $864,000,000 reported in the prior fiscal year.
International Division:
The International division recorded an operating profit of $177,000,000 for
the most recent quarter, compared with $65,000,000 for the same quarter in the
prior year. For the year ended January 31, 1998, the international division
recorded an operating profit of $262,000,000, compared with $24,000,000 in the
prior fiscal year.
During the fiscal year, the Company:
-- Opened 37 discount stores, closed 1, and relocated or expanded
4 additional stores.
-- Opened 97 Supercenters (including 75 discount store replacements).
-- Opened or acquired 289 international units - Argentina (3),
Brazil (3), Canada (7), China (1), Germany (21), Indonesia (1),
Mexico (250), and Puerto Rico (3).
-- Opened 8 new Sam's Clubs, closed 1, and relocated 1 club.
-- Opened 2 regional, and 2 food distribution centers.
As of January 31, 1998, the Company had 1,921 Wal-Mart stores, 441
Supercenters, and 443 Sam's Clubs in the United States. Internationally, the
Company operated units in Argentina (9), Brazil (8), Canada (144), Germany (21),
Mexico (402), and Puerto Rico (14), and under joint venture or franchise
agreements in China (3) and Indonesia (2). Wal-Mart employs more than 720,000
Associates in the U.S. and 105,000 internationally. Its securities are listed
on the New York and Pacific stock exchanges.
WAL-MART STORES, INC., AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)
(Amounts in millions except per share data)
Quarter Ended January 31,
% to % to
1998 Sales 1997 Sales
Net Sales $ 35,386 --- $ 30,856 ---
Other income-net 387 1.09% 399 1.29%
Total 35,773 101.09% 31,255 101.29%
Cost of sales 28,153 79.56% 24,726 80.13%
Operating, selling, and
general and administrative
expenses 5,300 14.98% 4,553 14.76%
Interest Costs:
Debt 142 0.40% 139 0.45%
Capital leases 63 0.18% 56 0.18%
Total 33,658 95.12% 29,474 95.52%
Income Before Income Taxes,
Minority Interest, and
Equity in Unconsolidated
Subsidiaries 2,115 5.98% 1,781 5.77%
Provision for Income Taxes 782 2.21% 648 2.10%
Income Before Minority
Interest and Equity in
Unconsolidated
Subsidiaries 1,333 3.77% 1,133 3.67%
Minority Interest and
Equity in Unconsolidated
Subsidiaries (46) -0.13% (38) -0.12%
Net Income $ 1,287 3.64% $ 1,095 3.55%
Net Income Per Share
Basic and Dilutive $ 0.57 --- $ 0.48 ---
Average number of common
shares
Basic 2,244 --- 2,289 ---
Dilutive 2,255 --- 2,293 ---
WAL-MART STORES, INC., AND SUBSIDIARIES
Consolidated Statements of Income
(unaudited)
(Amounts in millions except per share data)
Year Ended January 31,
% to % to
1998 Sales 1997 Sales
Net Sales $117,958 --- $104,859 ---
Other income-net 1,341 1.14% 1,319 1.26%
Total 119,299 101.14% 106,178 101.26%
Cost of sales 93,438 79.21% 83,510 79.64%
Operating, selling, and
general and administrative
expenses 19,358 16.41% 16,946 16.16%
Interest Costs:
Debt 555 0.47% 629 0.60%
Capital leases 229 0.19% 216 0.21%
Total 113,580 96.29% 101,301 96.61%
Income Before Income Taxes,
Minority Interest, and
Equity in Unconsolidated
Subsidiaries 5,719 4.85% 4,877 4.65%
Provision for Income Taxes 2,115 1.79% 1,794 1.71%
Income Before Minority
Interest and Equity in
Unconsolidated Subsidiaries 3,604 3.06% 3,083 2.94%
Minority Interest and Equity
in Unconsolidated
Subsidiaries (78) -0.07% (27) -0.03%
Net Income $ 3,526 2.99% $ 3,056 2.91%
Net Income Per Share
Basic and Dilutive $ 1.56 --- $ 1.33 ---
Average number of common
shares
Basic 2,258 --- 2,292 ---
Dilutive 2,267 --- 2,296 ---
/CONTACT: Investor Relations: Investor Relations, 501-273-8446, Jay
Fitzsimmons, 501-273-6445, Steve Hunter, 501-277-9558, or Media: Jay Allen,
501-273-4314, all of Wal-Mart Stores, Inc./
07:56 EST |
