Walmart 3Q13 Earnings Call Notes

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This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings.

“6.5% increase in diluted earnings per share from continuing operations of $1.14 for the third quarter.”

“Walmart U.S. grew net sales 2.4% to nearly $68 billion in the third quarter. Comp sales declined 0.3% in the 13 week period ended October 25.”

“Sam’s Club comp sales without increased 1.1% for the 13 week period. ”

“Walmart’s International’s constant currency net sales were up 4.1%, operating income on a constant currency basis increased at nearly twice the rate of sales.”

“Global e-commerce continues to deliver impressive sales results, including sales from Yihaodian acquired last year, third quarter sales grew nearly 40%. We’re investing in fulfillment centers like the facility recently opened in Fort Worth, Texas to be closer to our customers and to expedite the delivery of their merchandize and we’re accelerating the integration of e-commerce with our business segments. I’m really excited about the fantastic growth opportunities that lie ahead of us as Walmart serves millions of additional customers through our e-commerce sites in 10 countries.”

“CDs, tablets and videogame consoles are the top items on layaway.’

“The environment in South Africa remains challenging in the short term with high-end employment, rising utility rates and tighter consumer credits. But our team continues to take steps to make the business even stronger for the future in food and general merchandise”

“Comparable sales were negative 0.9%. Comp ticket grew 7.1% in China while traffic declined 8% as the customer behavior shift towards fewer trips continued in the third quarter. Our growth was slightly below the market compared to modern retail. Yet according to the Nielsen Company, we outperform the hypermarket segment for the quarter.”

“Japan continues to be a challenging retail environment. Net sales increased 1.2% and we delivered positive comp sales. The first comp increased since the second quarter of fiscal year 2013. Average ticket was up 2% and traffic was down 1.9%. According to statistics released by the Japanese Ministry of the Economy, Trade and Industry, overall supermarket comparable sales for the third quarter declined 1%, indicating that Walmart continues to outperform the market.”

“Around the world the company added approximately 11.7 million net new square feet of retail space during the quarter, bringing our net year-to-date additional square footage to 22.7 million”