Wal-Mart reports solid 3Q in tough economy

BENTONVILLE, Ark. Wal-Mart Stores continued to show its strength in a tough retail environment by reporting that net sales for the third quarter of fiscal year 2009 were $97.6 billion, an increase of 7.5% from $90.8 billion in the third quarter last year.

"We are very pleased with our results this quarter," said Lee Scott, Wal- Mart Stores, Inc. president and ceo. "Despite economic difficulties around the world, we achieved solid sales and earnings growth and we are optimistic about the upcoming holidays. At a time when our customer is feeling the pressure of a tough economy, Wal-Mart's price leadership is more important than ever."

Income from continuing operations for the third quarter was $3.03 billion, an increase of 6.6% from $2.85 billion in the third quarter last year. Diluted earnings per share from continuing operations for the third quarter of fiscal year 2009 increased to 77 cents from the previous year's third quarter result of 70 cents per share. The prior year included a net benefit of 1 cent per share due to the recognition of $46.5 million in after-tax gains from the sale of certain real estate properties.

Total U.S. comparable-store sales (excluding fuel) for the third quarter increased by 3%.

For the fourth quarter of fiscal year 2009, the company estimates the comparable-store sales increase in the United States to be between 1% and 3%, according to Tom Schoewe, Wal-Mart Stores evp and cfo.

"We estimate diluted earnings per share from continuing operations for the fourth quarter will be between $1.03 and $1.07," Schoewe said. "The rapid changes in currency exchange rates during the last few weeks are projected to negatively affect this year's fourth-quarter results by approximately six cents per share. In U.S. dollar terms, strong operating performance in International may be overshadowed by these currency fluctuations.

"For the full year, ending Jan. 31, we have tightened and modestly reduced our guidance and now forecast diluted earnings per share from continuing operations to be within a range of $3.42 to $3.46," he said.