Earnings Call Excerpt
Wal-Mart Stores, Inc. (WMT)
F2Q10 Earnings Call
August 13, 2009 7:00 am ET
Executives
Carol Schumacher - Vice President of Investor Relations
Mike Duke - President and CEO
Charles Holley - EVP of Finance and Treasurer
Eduardo Castro-Wright - Vice Chairman
Doug McMillon - President and CEO of Wal-Mart International
Brian Cornell - President and CEO of Sam’s Club
Tom Schoewe - Executive Vice President and CFO
Presentation
Welcome to the Wal-Mart Stores, Inc. earnings call for the second quarter of fiscal year 2010. The date of this call is August 13, 2009. This call is the property of Wal-Mart Stores, Inc. and intended solely for the use of Wal-Mart shareholders. It should not be reproduced in any way. You may navigate through this call as follows: Press one to rewind 10 seconds, press two to pause and press eight to resume playing. Press three to fast forward 10 seconds.
This call will contain statements that Wal-Mart believes are forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, and intended to enjoy the protection of the safe harbor for forward looking statements provided by that Act. These forward looking statements generally are identified by the use of the words or phrases can operate, estimate, expect, expectation, guidance, may affect, to expect, what you will see, will be, will continue, will give, will remain, will result, will stay, will step up, or a variation of one of those words or phrases in those statements or by the use of words or phrases of similar import.
Similarly, descriptions of our objectives, plans, goals, targets, or expectations are forward looking statements. These statements discuss, among other things, the anticipated comparable store sales for our Wal-Mart US segment and for our Sam’s Club segment for the current 13-week period, our anticipated diluted earnings per share from continuing operations for the current fiscal quarter and fiscal year 2010 as a whole, our anticipated tax rate for fiscal year 2010 and the factors that may impact that tax rate, the amount of the company’s expected capital expenditures for fiscal year 2010, working capital management for the balance of fiscal year 2010, Wal-Mart continuing to leverage expenses in the second half of the year, Wal-Mart’s continuing expense pressure to decline for the second half of this fiscal year, a sustainability index proposed by Wal-Mart giving customers a consistent view of the environmental impacts of products they buy, work on our merchandising transformation initiative continuing through the end of fiscal year 2010, leveraging of new merchandising systems in countries other than the United States, completion of foundational work on the finance transformation project to support certain countries within the next twelve months, the benefits of Wal-Mart’s finance transformation project, year over year inventory improvements staying with our Wal-Mart US segment for quite some time in the future, our Wal-Mart US segment’s focus on improving its expense structure and managing expenses resulting in driving better earnings, the rollout of the remodeling program of the Wal-Mart US segment continuing through October, 2009, our Wal-Mart US segment continuing to be focused on its price leadership message, our Wal-Mart US segment’s strategic framework continuing to help offset an economy that will be challenging the rest of this year, our International segment being able to operate on less inventory while increasing in stock levels, Wal-Mart’s Sam’s Club segment continuing to elevate its focus on using consumer and member insights to guide its business and stepping up the relevancy, uniqueness and quality of its merchandise assortment at a superior value and best in class club experience, the Sam’s Club segment continuing to roll out its eValues program, our Sam’s Club segment seeing continued sales pressure from fuel in the third quarter of fiscal year 2010 and a potential turnaround in such sales in the fourth quarter, our Sam’s Club segment continuing to monitor apparel sales for inventory management purposes, the health care costs of the Sam’s Club segment continuing to grow for the remainder of fiscal year 2010, Wal-Mart continuing to be focused on expense management, as well as increasing productivity and the efficiency throughout its global operations for the balance of fiscal 2010 and Wal-Mart doing a great job for its customers long after the economy recovers, and the anticipation and expectations of Wal-Mart and its management as to future occurrences and trends.
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