Wal-Mart quarterly profits increase
Earnings growth outpacing sales
Wal-Mart has seen profit growth outpace sales growth in the three months to July 31, showing that internal cost savings are helping the world’s biggest retailer ride out a tough US market.
For its second quarter, Wal-Mart reported net sales of $69.7bn, an increase of 11.3 per cent year on year, while profits increased by 16.1 per cent to $2.7 bn.
Lee Scott, President and CEO said: “I am pleased to report another quarter of record sales and earnings. This quarter, earnings grew faster than sales, and we improved operating profits in all of our divisions.
“We consider this a solid performance in a difficult retail environment. Now at the half way point, we are on track for another record year.”
Total US comparable sales for the quarter increased 4.1 per cent, up 3.2 per cent in Wal-Mart Stores and 8.8 per cent in the Sam’s Club division.
The International division made an operating profit of $748m across the quarter, an increase of 33.3 per cent.
Group sales for the six months to July 31 were $134.5bn, an increase of 12.7 per cent.
