Retail giant Wal-Mart Stores reported profit for the third quarter of 2013, which increased 3% from last year, reflecting revenue growth across all three geographic business units.
Walmart US saw net sales growth of 2.4%, blaming negative comparable store sales of 0.3% on a competitive retail environment. The entity’s operating income grew faster than sales this quarter at 5.8%.
Sam’s Club net sales grew 1.1%, with comparable sales, without fuel, increasing 1.1%. Operating income grew sharply, faster than sales at 9.4%, without fuel.
Walmart International net sales also edged up 0.2%, and operating income grew faster than sales at 1.7%. On constant currency basis, net sales would have increased 4.1%.
The world’s largest retailer reported net income of $3.74bn for the third quarter, higher than $3.64bn in the year-ago quarter, which includes $0.01 per share from Vips restaurants in Mexico, now in discontinued operations.
Walmart’s revenues for the quarter increased 1.7% to $115.69bn from $113.80bn in the same quarter last year.
Total net sales rose 1.6% to $114.88bn from last year, and included a negative currency exchange rate impact of $1.62bn. Constant currency sales grew 2.7% to $116.18bn.
However, total comparable store sales edged down 0.1%.
Walmart’s consolidated operating income increased 3.6% to $6.31bn, and grew faster than sales.
Walmart president and CEO Mike Duke said the company delivered solid earnings growth that was within the guidance range.
"We had strong operating income across our segments, with Walmart U.S. growing almost 6 percent, Sam’s Club increasing more than 9 percent, and International up 8 percent on a constant currency basis," Duke added.