Charles Holley, executive vice president chief financial officer of Wal-Mart Stores, Inc. (NYSE:WMT) said the retail giant had “very good sales” over the past several weeks since the extreme weather conditions in mid-February during the Bank of America Merill Lynch (BAML) Consumer and Retail Conference today.
Wal-Mart small stores expansion
Holley also said the Wal-Mart Stores, Inc. (NYSE:WMT) will continue expanding its small stores format. According to him, the retail giant feels good about its small stores.
Last month, the company announced that it expects to add around 270 to 300 small stores during the fiscal year. The retail giant noted that its small stores continued to generate positive comp sales and traffic increases every quarter.
Wal-Mart FY 2014 performance
During the conference, Holley made a presentation showing that the 1.6% sales growth of Wal-Mart Stores, Inc. (NYSE:WMT) in fiscal year 2013 did not meet its guidance of 2% to 3%. However, the retail giant’s square footage growth of 3% met its guidance and delivered strong free cash flow.
Wal-Mart Stores, Inc. (NYSE:WMT) delivered approximately $279.4 billion net sales, an increase of 2% and $22.4 billion operating income, an increase of 4% for its fiscal 2014. Over the past consecutive years, the retail giant delivered operating expenses with 18 bps of leverage. Its price investment gross profit rate was -1 bps during the period. Holley also demonstrated that Sam’s Club’s membership income increased 5.9% in FY 2014.
Keys to FY 2015 success
In his presentation, Holley showed that the keys to the success of Wal-Mart Stores, Inc. (NYSE:WMT) included continuing strong financial position, strengthening global compliance and ethics model, driving EDLC, & EDLP, developing associate talent, increasing comp sales, and growing e-commerce and m-commerce.
The priorities of Wal-Mart Stores, Inc. (NYSE:WMT) for the FY 2015 included increasing its comp sales, acceleration of its small stores format and e-commerce, product and brand innovation, and driving its productivity.
The retail giant plans to continue its incremental investments, adding strategic acquisitions, launching Pangaea, Walmart.com enhancements, increasing fulfillment capabilities, and driving higher sales in four key markets as part of its priorities for global e-commerce.
Wal-Mart Stores, Inc. (NYSE:WMT) intends to expand its Walmart Express and Neighborhood Market approximately 645 units in FY 2015.
The shares of Wal-Mart Stores, Inc. (NYSE:WMT) gained nearly 1% to $74.76 per share after Holley’s presentation at the BAML consumer and retail conference.