Asda Q1 Easter adjusted like for like sales up by 0.8 per cent exc VAT, and by 1.7 per cent inc VAT
Walmart today released its Q1 earnings for FY 2012, which includes an update of Asda’s Q1 sales performance.
- Asda’s first quarter covers the trading period from 1st January 2011 to 31st March 2011 ie it excludes Easter and the Royal Wedding bank holiday.
- Asda’s strong sales during Easter and the Royal Wedding will be included in Walmart’s next quarter earnings on 16th August.
- Easter adjusted like for like sales (ie removing the benefit of Easter from the comparable January-March period in 2010) increased by 0.8 per cent excluding VAT, and by 1.7 per cent including VAT.
- Unadjusted like for like sales increased 0.1 per cent for the quarter to 31 March 2011.
Doug McMillon, Walmart International President and CEO, on a conference call with analysts said: “Andy Clarke and the Asda team had a solid start to the year, growing sales in the first quarter of this year.”
Asda’s operating income declined from last year, however this was primarily as a result of the charge for the closure of Asda’s defined benefit pension plan and, to a lesser extent, acquisition costs for Netto. Excluding these charges, Asda’s expenses grew slower than sales under the We Operate for Less programme. Operating income was essentially flat to last year.
Doug McMillon added: “Our team in the UK completed its purchase of the 147 Netto stores from Dansk Supermarked in April 2011, which falls in our second fiscal quarter. We expect to complete the in-store conversions this year, investing more than £100 million and creating more than 1,500 jobs. Two of our leaders in the UK, Judith McKenna (Asda CFO) and Karen Hubbard (Asda Operations Director Supermarkets), have done a great job getting us to this point and we look forward to seeing the results of our conversions and integration. In fact, we have already opened our first three converted stores – Wakefield, Worksop, Stainforth.”
In the first quarter Asda increased its price guarantee to 10 per cent, and as a result almost three million customer baskets have now been checked online.
Doug McMillon said: “Asda’s commitment to EDLP comes at an important time for its customers who are dealing with the burden of inflation, taxes, and record petrol prices.”
Asda’s private brands continue to perform well, with its premium brand Extra Special and mid-tier brand Chosen by you ranked by Kantar Worldpanel as the fastest growing private brand across the top four UK grocery retailers. Earlier today Asda announced it had completed the full rollout of Chosen by you, and had now embarked on the next phase of its food quality investment programme.
In the last 12 months (up to 31st March 2011), Asda opened 12 new stores, and had a total store count of 386.
For more detail visit Walmart’s website