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CPG Management., CPG Sales, Research

Wal-Mart Posts Gains in U.S. Comps


BENTONVILLE, Ark. — Price investments in food and other consumables helped drive sales growth at Wal-Mart Stores in the first quarter, but also pressured profit margins at the world’s largest retailer.

“Price was the focus of our first-quarter marketing, and this will continue to be a key message this year,” said Bill Simon, president and chief executive officer, Walmart U.S., in a prerecorded earnings call on Thursday.

Comparable-store sales in the U.S. division, which does not include Sam’s Club, were up 2.6% for the 13-week period ending April 27. Traffic was up 1.1% and the average ticket size increased 1.5%, relative to the comparable period of a year ago, the company said.

Operating income in the U.S. grew 8.1% in the first quarter, to $5 billion, on a 5.9% increase in sales, to $66.3 billion. The company said gross profit in the U.S. was up 4.9% to $18 billion, but the gross profit rate was down 24 basis points vs. a year ago, reflecting the price investments.

Overall, the company posted a 9.2% increase in net income, to $3.7 billion, on an 8.5% gain in revenues, to $113 billion. Operating income was up 7.7% at Sam’s Club to $490 million, and up 21.2% at Walmart International, to $1.3 billion. Comps were up 5.3%, excluding fuel, at Sam’s Club in the U.S.

via Wal-Mart Posts Gains in U.S. Comps | Retail & Financial content from Supermarket News.

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About Bob Innes

Who am I and what I do best! I am a skilled Sales and Marketing team player known for performing behind the scenes miracles that increase base distribution, improve customer relationship management, exceed annual sales volume,and profitability for Consumer Packaged Goods companies. And I've been doing it for over 15 years. My successful contributions include such clients as Kraft Foods, Mars, Bumble Bee Foods, Unilever, Johnson and Johnson and SC Johnson, and JM Smuckers.

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