Despite concerns to the contrary, Wal-Mart (NYSE: WMT) is still growing. It posted the first $100 billion quarter in its history. The world's largest retailer said net sales for the fourth quarter of fiscal year 2008 were $106.269 billion, an increase of 8.3% from the year-earlier period. Earnings from continuing operations were $1.02 per share, up 7.4% from 95 cents a year earlier, including a net charge of approximately 2 cents per share for certain items this year.
The top-line numbers were a bit misleading. US sales at the Wal-Mart flagship brand rose a pathetic 5% to $67.4 billion. Sales from international operations rose almost 19% to $27 billion. At that growth rate, overseas sales could match domestic sale in seven or eight years.
Operating income overseas rose over 14% to more than $1.7 billion, or 23% of the global total.
Wal-Mart says it expects expects earnings of 70 cents to 74 cents for the first quarter of fiscal year 2009, and between $3.30 and $3.43 for the full fiscal year 2009. Both numbers were below analysts' estimates of 74 cents and $3.44.
It is clear that Wal-Mart will now have to rely almost completely on international sales to meet its forecasts for the up-coming year. China and Mexico better deliver.
Douglas A. McIntyre is an editor at 247wallst.com
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Reader Comments (Page 1 of 1)
2-19-2008 @ 7:23AM
BizIntel said...
Interesting, I had no idea that Wal-Mart entered the Chinese market as early as 1996. Also, the foray into Costa Rica, El Salvador, Guatemala, etc. in '05 is interesting. Here is the Wal-Mart international data sheet (below) from the shareholder site. Looks like they will be entering the Indian market this year as well.
http://walmartstores.com/Files/Intl_operations.pdf
Cheers,
BizIntel
http://www.evaluatingstocks.com