Walmart 2006 Annual Report Download - page 14

To our shareholders, associates and customers:
Last year was a good year for Wal-Mart. We delivered record financial results and strong,
steady growth. But just as important as what we achieved are the changes we made to
position our Company for the future. We at Wal-Mart are optimistic – or smiling, if you will
– about our ability to continue to grow and touch the lives of millions more working
families around the world.
When it comes to our performance during fiscal 2006, we have a lot to
be proud of at Wal-Mart. Our net sales rose 9.5% to a record $312.4 bil-
lion. Net income rose 9.4% to a record $11.2 billion. Our earnings per
share grew double-digits from $2.41 to $2.68 per share. And despite high-
er energy costs – which will likely remain a challenge in the coming year
– comparative store sales in the U.S. rose a healthy 3.4%. We were also
pleased with strong international sales in Argentina, Mexico and Brazil.
All of this success is a tribute to the 1.8 million associates who serve
our customers every day in our more than 6,100 stores worldwide. And
thanks to these hard-working men and women and their ability to grow
with our Company, we are excited about the future. Together, we are going
to leverage the changes of this past year into even greater success for
Wal-Mart and the communities we serve and support.
One area where we made major changes last year was management.
John Menzer and Mike Duke switched leadership roles. As a vice chair-
man, John now runs U.S. operations and several divisions. Mike, also a
vice chairman, now runs our international operations. After a superb job
at the helm of Wal-Mex, Eduardo Castro-Wright took over our U.S. stores.
And we elevated Company veteran Doug McMillon to president and CEO
of SAM’S CLUB. We also strengthened the leadership in both our domes-
tic and international divisions by attracting some outstanding talent from
outside the Company. With these moves, our entire management team
is now sharply focused on strengthening the customer experience in our
stores and clubs.
Another area where we made significant changes was in our inter-
national business. With our purchase of the retail operations of Sonae
in Brazil and our consolidation of Seiyu in Japan, we added 537 new
international stores and 50,000 new associates. And, with our purchase
of an interest in CARHCO in Central America, we increased the num-
ber of countries in which we operate by 50% – from 10 countries to
15 countries. These aggressive moves are helping us continue to drive
robust growth in our international division. So will our expansion plans.
Of the almost 600 stores we plan to open this year, we expect more
than a third will be international.
“ When it comes to our performance
during fiscal 2006, we have a lot to be
proud of at Wal-Mart. Our net sales
rose 9.5% to a record $312.4 billion.
Net income rose 9.4% to a record
$11.2 billion. Our earnings per share
grew double-digits from $2.41 to
$2.68 per share.”
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– Lee Scott, President and Chief Executive Offi cer