June 2006 Sales Summary
Investor Relations Contacts
Investor Relations 479-273-8446
Carol Schumacher 479-277-1498
Pauline Tureman 479-277-9558
Media Relations Contact
Gail Lavielle 479-273-4314
The text below is also available via a recorded telephone call, which is accessible by calling 479-273-8446.
Hello and thank you for calling Wal-Mart for the June sales release.
The sales reporting period included the five weeks ended Friday, June 30th, and compares with the five weeks ended Friday, July 1st, last year.
For this year’s five-week period, comparable sales were up 1.1 percent at the Wal-Mart Stores and up 1.3 percent at SAM’S CLUB. Total U.S. comparable sales increased 1.2 percent for the five-week period.
The actual sales results for the five-week period were:
The 29.5 percent increase for the five-week period in International includes sales from the consolidation of Seiyu and Wal-Mart Central America and our acquisition in Southern Brazil. These entities added 17.6 percentage points to the net sales increase in International for the five-week period.
Geographically in the Wal-Mart Stores, the North (Rocky Mountain area) and the Southeast were the strongest regions for the period. Comparable sales in food were stronger than general merchandise.
International strengths came from Argentina, Brazil, China, Mexico, and the United Kingdom.
Tom Schoewe, executive vice president and chief financial officer is quoted in the June sales release as saying, “Despite various pressures on U.S. consumers, Wal-Mart Stores, Inc. added more than $3 billion in sales during the five-week period in June. Average ticket continues to drive our comp, as traffic was down during the month. Several factors contributed to the June comp of 1.2 percent.”
Schoewe said Wal-Mart continues to see customers consolidating their trips, as company research among shoppers points to an increasing concern about the rise in gas prices over last year.
“The priority in spending by our customers is on food and consumables,” Schoewe said. “In June, we reinforced Wal-Mart’s low prices and value throughout the store by highlighting rollback prices on approximately 500 products through national advertising and increased signage. The rollback ads emphasized summer essentials and included food, beverages and health and beauty items.
“In addition, cooler trends in some regions of the country did result in softer sales of seasonal merchandise for the start of summer,” he added.
Schoewe said that the estimate for comparable sales in the U.S. for the July four-week period is in the 1 to 3 percent range.
“Based on the results of the first two months, we estimate that the current earnings per share for the second quarter of fiscal 2007 will be within our previously stated guidance of $0.70 to $0.74,” he said.
Comparable sales that are presented in this release exclude the impact of fuel sales in our SAM’S CLUB segment. Fuel sales impacted the SAM’S CLUB and total U.S. comparable sales figures for the five-week period ending June 30, 2006, by 1.1 and 0.1 percentage points, respectively. Including the impact of fuel sales, the SAM’S CLUB and total U.S. comparable sales figures for the five-week period ending June 30, 2006, would have been 2.4 percent and 1.3 percent, respectively. Additional information regarding our comparable store sales can be found at www.walmartstores.com/investors.
Information from this sales pre-recorded phone call is available at www.walmartstores.com/sales.
Thank you for your interest in Wal-Mart Stores.
This call is the property of Wal-Mart Stores, Inc. and intended solely for the use of Wal-Mart shareholders. It should not be reproduced in any way.
This release contains statements that Wal-Mart believes are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, and intended to enjoy the protection of the safe harbor for forward-looking statements provided by that Act. These forward-looking statements generally can be identified by use of phrases such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “foresee,” “forecast,” or other similar words or phrases. Similarly, descriptions of our objectives, strategies, plans, goals or targets are also forward-looking statements. These statements discuss, among other things, expected growth, future revenues, future cash flows, future performance and the anticipation and expectations of Wal-Mart and its management as to future occurrences and trends. These forward-looking statements are subject to risks, uncertainties and other factors, domestically and internationally, including, the cost of goods, competitive pressures, inflation, consumer spending patterns and debt levels, currency exchange fluctuations, trade restrictions, changes in tariff and freight rates, interest rate fluctuations and other capital market conditions, and other risks. We discuss certain of these matters more fully in other of our filings with the SEC, including our last annual report on Form 10-K filed with the SEC; this release should be read in conjunction with our annual report on Form 10-K, and together with all our other filings, including current reports on Form 8-K, made with the SEC through the date of this report. You are urged to consider all of these risks, uncertainties and other factors carefully in evaluating the forward-looking statements. As a result of these matters, including changes in facts, assumptions not being realized or other circumstances, our actual results June differ materially from historical results or from anticipated results expressed or implied in these forward-looking statements. The forward-looking statements included in this release are made only as of the date of this report and we undertake no obligation to update these forward-looking statements to reflect subsequent events or circumstances.
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