Wal-Mart Q1 Results Summary

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Tue, 05/18/2010 - 08:37 | 357818 silvertrain
silvertrain's picture

 Largest Income return in history..My Wal-mart has been a ghost town over the last month with long lines at the return counter..

Tue, 05/18/2010 - 08:38 | 357822 Whizbang
Whizbang's picture

-1.6 billion cash flow?! Holy crap

Tue, 05/18/2010 - 09:53 | 357939 Cursive
Cursive's picture

Wow.  That is really bad for the retail bottom-feeder king.  I guess we can expect more layoffs, right?

Tue, 05/18/2010 - 10:06 | 357948 Agent P
Agent P's picture

It's FCF...CFO was positive, albeit way down from Q1'09 ($973M vs. $3.6B).  92% of the y/y CFO decline was due to inventory restocking (remember that in Q1'09 retailers were caught with their pants down with excess inventory, WMT was no exception with positive cash flow from inventory liquidations in Q1'09 & Q2'09).  Throw in capex of $2.6B for store remodelings, etc. and presto, you get negative FCF.  It's not a big deal.

Tue, 05/18/2010 - 08:45 | 357831 Samsonov
Samsonov's picture

Spin: Consumers, newly confident and ready to spend, return to spendthrift ways and abandon discount stores.

Tue, 05/18/2010 - 09:51 | 357933 Cursive
Cursive's picture

+1  They are losing customers to JWN!

Tue, 05/18/2010 - 08:48 | 357840 cossack55
cossack55's picture

I certainly hope this does not negatively impact my accummulation of worthless Chinese crap.

Tue, 05/18/2010 - 08:49 | 357843 pan-the-ist
pan-the-ist's picture

This is good news right, it's because people have started spending their money at small business ... right?  Shopping local and spending more than at Walmart to help the economy.  Sounds bullish to me ;)

Tue, 05/18/2010 - 09:03 | 357860 overmedicatedun...
overmedicatedundersexed's picture

Walmart is signal that the W is here..did you see those building permit #'s? feeling really good about my short ETF's.

Tue, 05/18/2010 - 09:09 | 357865 JohnKing
JohnKing's picture

Wal-Mart and Office Depot pretty much tell the story of US economy. Green shoots!

Tue, 05/18/2010 - 09:14 | 357870 trillion_dollar...
trillion_dollar_deficit's picture

TD, I think it would be interesting for you to start discussing the video game NPD data. If there's anything that throws cold water on the "retail comeback" argument its that. There's been several consecutive months of -20% to -25% declines in revenue y-o-y.

Tue, 05/18/2010 - 09:23 | 357882 Sniper
Sniper's picture

I don't know the video game industry that well but aren't comps volatile due to the new releases each period (GTA 4, Call of Duty, etc.)?

Tue, 05/18/2010 - 09:48 | 357930 trillion_dollar...
trillion_dollar_deficit's picture

True to a certain extent. But, barring the release of the games you mentioned above, the y-o-y comparisons should be relatively good.

Tue, 05/18/2010 - 10:09 | 357955 Mark McGoldrick
Mark McGoldrick's picture

Look at Goldman.  Ever so steadily approaching its 52 week low. 

Tue, 05/18/2010 - 10:41 | 358009 vote_libertaria...
vote_libertarian_party's picture

....aaaaand the buy buy buy bots love massive negative cash flow (WMT up 4%)


who du thunk it?

Tue, 05/18/2010 - 10:45 | 358021 Crummy
Crummy's picture

Wal-Mart's profit margin is wholly dependent on the strength of the dollar vs foreign currency and is thus equally unsound.

Tue, 05/18/2010 - 20:08 | 359439 Gloppie
Gloppie's picture

I noticed that Walmart has been shuffeling gondolas and offers waaayyy less choice than before. The two that I go to are usually empty with long lines because not enough registers are opened.

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