Strong dollar hits Wal-Mart Q1 earnings

US: Strong dollar hits Wal-Mart Q1 earnings

By just-style.com | 14 May 2009

The strength of the US dollar has weighed on quarterly earnings at Wal-Mart, the world's largest retailer, with first quarter profit flat compared to the same period last year.

The US retail giant today (14 May) booked net income of US$3.02bn for the three months to 30 April as revenues from its operations outside the US were hit by the dollar.

Revenue dipped 0.6% to $93.47bn and Wal-Mart said that, without the negative impact of foreign exchange, turnover would have risen 4.5% to $98.31bn.

Operating income fell from US$5.32bn to US$5.22bn.

The retailer said that operating income from its international division would have risen by 7.8% to US$1.13bn if currency fluctuations were removed from the numbers.

Nevertheless, president and CEO Mike Duke said Wal-Mart had got off to "a very good start" in its current fiscal year.

"These results were achieved in the face of a very challenging global economy," Duke said.

"When economic conditions improve, we believe customers who shop Wal-Mart today will stay with us, because of the business improvements we're making and continue to make."

US comparable-store sales excluding fuel rose 2%, Wal-Mart said.

Sectors: Apparel, Retail

Companies: Wal-Mart