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Walmart general overview
Wal-Mart Financial Update Net sales for the twelve
months ended January 31, 2004, were a record $256.3 billion,
an increase of 11.6 percent over net sales of the similar
prior year period. Income from continuing operations after
minority interest and taxes for the twelve months increased
13.3 percent to a record $8.9 billion or $2.03 earnings
per share, up from $7.8 billion or $1.76 earnings per share
in the same prior year period.
Total U.S. comparable sales for the quarter increased 4.8
percent which is represented by a 4.4 percent comp increase
for Wal-Mart Stores and 6.7 percent comp increase for SAM’S
CLUB. Total US comparable sales for the twelve month period
were up 4.1 percent, which is represented by a 3.9 percent
comp increase for Wal-Mart Stores and a 5.3 percent comp
increase for SAM’S CLUB.
Wal-Mart Stores Segment:
For the fourth quarter, the Wal-Mart Stores segment, including
Supercenters, had operating profit (profit before interest,
unallocated corporate expenses, and income taxes) of $3.880
billion, an increase of 8.3 percent compared with $3.584
billion in the similar period in the prior year.
For the twelve month period, the Wal-Mart Stores segment,
including Supercenters, had operating profit of $12.916
billion, an increase of 9.1 percent as compared with operating
profit of $11.840 billion in the similar period in the prior
year.
International Segment:
The International segment had an operating profit of $862
million for the most recent quarter, an increase of 15.2
percent compared with $748 million in the similar period
in the prior year.
The International segment had an operating profit of $2.370
billion for the twelve month period, an increase of 18.6
percent compared with $1.998 billion in the similar period
in the prior year.
After this earnings release has been furnished to the SEC,
a pre-recorded call offering additional comments on the
quarter will be available to all investors. You may listen
to this call by dialing 402-998-1748. The information included
in this release and our prerecorded phone call will be available
on our web site at www.walmartstores.com,
news, news releases, earnings and dividends.
Wal-Mart acquires Bompreco Brazil:
Vincent Trius, President of Wal-Mart Brazil, recently announced
the acquisition of Bompreco, a retail chain in northeastern
Brazil with 118 units (hypermarkets, supermarkets and mini
markets). Bompreco, formerly owned by Ahold, has more than
20,000 employees, who will be joining forces with Wal-Mart
Brazil to continue offering superior services to customers
in the Northeast.
Total value of the transaction is approximately $500 million,
Trius said, about $300 million for the Bompreco assets and
about $200 million for Hipercard.
With the acquisition, Wal-Mart Brazil will operate 143
units in the country, including 13 Wal-Mart Supercenters,
10 SAM'S CLUBS, two Wal-Mart Todo Dias and the 118 Bompreco
hypermarkets, supermarkets and mini markets. Trius said
Wal-Mart Brazil, would keep its current home office in SÃO
Paulo, but would retain Bompreco's headquarters in Recife
as its regional base of operations.
Wal-Mart Still No. 1 at Fortune
Magazine: FORTUNE recently announced that Wal-Mart
is No. 1 on the magazine's annual list of America's Most
Admired Companies. Despite a year of bad press and lagging
stock price, "the 10,000 executives, directors, and
analysts whom FORTUNE polled in late 2003 weren't deterred:
They have named the retailing juggernaut America's Most
Admired Company for the second year in a row," writes
FORTUNE senior reporter Ann Harrington.
To arrive at the industry category rankings, the Hay Group,
a management-consulting firm, took the ten largest companies
by revenue in 64 industries, including foreign firms with
large US operations. Then it asked 10,000 executives, directors,
and securities analysts to rate the companies in their own
industries according to eight criteria, using a scale of
one to ten. The Top Ten list is the result of another poll
which asked respondents to select the ten companies they
admire most in any industry, choosing from a list of corporations
that ranked in the top 25% overall last year, plus any that
finished in the top 20% of their category. Because insiders
may grade differently from the business world as a whole,
high scorers on the industry lists don't always make the
overall top ten.
Toddler and infant department
overview
The department is looking awesome with sharp visuals,
clean cuts and sharp styling in a balanced mix of all of
the house tags. George, the English designer tag that has,
until now, been the cornerstone of the career gear in women’s
and men’s, is here in the infant and toddler department.
The angle for the tag here is much like the Genuine Kids
by Osh Kosh looks that are at Target; clean, basic and easy
to coordinate. Mary Kate and Ashley is here with delicious
coordinates while Athletic Works offers up sassy knit casuals
with athletic touches. Kid Connection is the opening price
point tag. Faded Glory rounds out the woven selection with
fashion denims and related separates.
Opportunities in the infant's
and toddler's department
As in the boy’s department, we would be hard
pressed to come up with particular items that could either
be made cheaper or better for the buck. The only option
is to offer more options! Like in boys, we would offer a
twofer of a tank with a tee that can be layered or worn
separately. Perhaps a capri and a scooter could be paired
off and sold as ‘ basic necessities’ with a twist.
We also stand behind reversible items and sets that include
shoes or wearable hats. Lastly, we see just a tiny sliver
of room for Pique knit in dresses, bottoms and tops!
A look into the department:
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