BENTONVILLE, AK - Overall, Wal-Mart reported a quarter that President and CEO Doug McMillon felt remained strong, having generated nearly $115 billion in revenue and delivered earnings per share within the retailer’s reported guidance range at $1.03, despite this being about 0.1 percent lower than the same time last year.
"We had a solid first quarter,” McMillon said in a press release. “We took some important strategic steps to strengthen the foundation of our business for the future. We need to continue to get better at consistently running great stores, clubs and e-commerce everywhere we operate...and we are."
While overall numbers are being reported to have fallen short of expectations, the company’s fresh foods sector reported a positive over the quarter.
“We were pleased by the operational improvement we saw in fresh,” Greg Foran, President and CEO of Wal-Mart U.S., said during this morning’s Management Earnings call. “As we mentioned in April, this is a key area of focus, and getting fresh right is critical to the customer experience.”
According to Foran, overall net food inflation negatively impacted comps by approximately 20 basis points, but the company estimates that moderation in fresh foods (partially offset by inflationary trends in dry and frozen foods) impacted Wal-Mart’s overall comp performance by almost 70 basis points this quarter, a healthy boost in the company's fresh category.
The overall financial summary included:
- Q1 diluted EPS from continuing operations was $1.03, within guidance of $0.95 to $1.10.
- Currency negatively impacted EPS by approximately $0.03.
- Wal-Mart U.S. 1.1% comp includes positive traffic for the second consecutive quarter.
- Customer experience scores improved in all formats. Customers benefited from lower gas prices.
- E-commerce sales globally increased approximately 17%.
- Consolidated operating income declined 8.3%, due to impacts from currency fluctuation.
"Based on our views of the global macro-economic environment, and assuming currency exchange rates remain at current levels, we expect second quarter fiscal 2016 earnings per share to range between $1.06 and $1.18,” Charles Holley, Executive Vice President and CFO of Wal-Mart Stores, Inc, said in the report.
Holley also noted that the company’s second quarter guidance includes the impact of approximately $0.04 per share from the company’s previously announced investments in both U.S. associate wages and training, as well as $0.04 per share from currency.
