Walmart Net Rises 3.6 Percent in Second Quarter
August 17, 2010,
BENTONVILLE, Ark.-Net income for Walmart finished the second quarter at $3.6 billion, up 3.6 percent from the second quarter of 2009.
The world's largest retailer posted a net sales gain of 2.8 percent to $103 billion in the quarter, which included an 11 percent jump in international sales. Driving global sales were strong growth in Mexico, and increases in new stores in Brazil and China. The international operation represented 60 percent of the five million total square feet Walmart added in retail space in the second quarter.
Walmart also kept selling, general and administrative expenses in check, with a 0.6 percent increase in this item. Gross margin declined by 33 basis points to 25.3 percent.
Same-store sales for Walmart's U.S. locations fell 1.8 percent in the quarter, while for Sam's Club they increased 1 percent without factoring in gasoline sales, and 2.6 percent when including gas sales.
In a company statement, Mike Duke, president and chief executive officer, said Walmart improved its bottom line in spite of "the ongoing challenges of the global economy. The slow economic recovery will continue to affect our customers, and we expect they will remain cautious about spending."