Wal-Mart (WMT) reported first-quarter earnings today. On surface, the results don’t appear to be that strong, but when you look at the details, I think Wal-Mart is doing quite well.
For the quarter, Wal-Mart earned $3.02 billion which is the same as last year’s first quarter. However, the company has fewer outstanding shares so the EPS increased from 76 to 77 cents.
The really telling part is that net sales fell 0.6% to 93.47 billion. But the dollar was strong in the first quarter. If you exclude the impact of currency exchange, Wal-Mart’s sales would have increased 4.5%.
As I’ve said many times, I expect the dollar to start to fall soon due to the weight of our reckless fiscal policies. What’s bad for the dollar will be good for Wal-Mart. I’m also impressed by the way shoppers are turning to Wal-Mart in order to find good bargains.
The stock is up today. Wal-Mart a member of my Blue Chip Growth Buy List although I’ve temporarily put it on Hold.