Wal-Mart 1Q Earnings Up 8.1%

Bentonville, AR, May 15, 2007–Wal-Mart reported an 8.1 percent increase in its first quarter to $2.83 billion or 68 cents per share up from $2.62 billion, or 63 cents per share, in the year ago period. Sales rose 8.3 percent to $85.387 billion.

The company however missed analyst’s estimates; they were expecting EPS of 68 cents per share.

“While these are record sales and earnings, we feel there was an opportunity to have done better,” said Lee Scott, Wal-Mart Stores, Inc. president and chief executive officer. “Delivering on our mission — saving people money so they can live better — is more important than ever around the world. The worldwide organization is focused on improving sales and returns.”

The company forecast earnings per share continuing operations between 75 cents to 79 cents for its fiscal second-quarter. Analysts, on average, had been expecting it to earn 79 cents per share, according to Reuters Estimates.

Wal-Mart’s April same-store sales fell 3.5 percent, the largest decline since the retailer began reporting such numbers in 1979.

After downplaying its discount roots last year to try to sell more goods to affluent shoppers, Wal-Mart is now reemphasizing its low prices.