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In a press release dated May 19th Walmart Stores Inc. (WMT) announced results for the 1st Quarter of FY 2020 ending April 30th.
The following table summarizes the results for the period compared with the values for the corresponding quarter of the previous fiscal year (Values expressed as US$ x 1,000 except EPS)
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Doug McMillon |
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Quarter Ending
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2020
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2019
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Difference (%)
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Sales:
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$134,622,000
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$123,925,000
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+8.6
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Gross profit:
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$31,646,000
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$29,915,000
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+5.8
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Operating income:
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$5,224,000
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$4,945,000
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+5.6
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Pre-tax Income
Net Income
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$5,936,000
$3,990,000
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$5,517,000
$3,842,000
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+15.1
+3.9
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Diluted earnings per share:
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$1.40
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$1.33
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+5.3
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Gross Margin (%)
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23.5
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24.1
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-2.5
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Operating Margin (%)
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3.9
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4.0
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-2.5
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Profit Margin (%)
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3.0
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3.1
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-3.2
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Long-term debt and lease obligations:
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$58,675,000
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$59,885,000
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-2.0
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12 Months Trailing:
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Return on Assets (%)
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5.9
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Return on Equity (%)
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18.8
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Operating Margin (%)
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4.1
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Profit Margin (%)
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2.8
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Total Assets
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$232,892,000
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$234,544,000
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-0.7
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Market Capitalization
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$
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52-Week Range in Share Price: $100.40 to $ 130.42 50-day Moving average $124.50
Market Close May 18th $127.70. Open May 19th post-release $130.42
Forward P/E 24.3 Beta 0.3
Walmart USA posted a 10 percent increase in same-store sales growth and a 4.8 percent operating margin
Walmart International posted a 3.0 percent operating margin
Sam’s Club posted a 13 percent increase in same-store sales growth and a 3.3 percent operating margin.
E-commerce increased by 74 percent over the 1st quarter of 2020. The Company will end the Jet.com brand, acquired for $3 billion in 2016 having integrated the operation and technology into Walmart E-commerce enterprises.
In response to the COVID-19 outbreak WMT has assigned $755 to special bonuses for workers, increased hourly pay by $2 and hired 235 additional employees. Philanthropic activities have been extended in the U.S and where the company operates internationally.
Doug McMillon president and CEO commented on the performance of the Company during a difficult quarter stating “The company’s approach to leadership through shared value has never been more evident than it is now. From associates to customers to communities, shareholders and more, Walmart is working hard to make a difference”.
The Company declined to provide guidance for FY given uncertainties associated with COVID-19