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Wal-Mart profit up, US same-store sales decline

Wal-Mart profit up, US same-store sales decline
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First Published: Tue, Nov 16 2010. 05 19 PM IST
Updated: Tue, Nov 16 2010. 05 19 PM IST
New York: Wal-Mart Stores Inc posted a higher quarterly profit and raised its full-year earnings forecast, but US same-store sales declined as its shoppers remain under pressure in a weak economy.
Sales at US Wal-Mart stores open at least a year fell 1.3%, the sixth consecutive quarterly decline at the world’s largest retailer.
Sales at Wal-Mart’s US discount stores have suffered from the company’s missteps in terms of merchandise selection and promotion. In addition, high unemployment has forced Wal-Mart’s lower-income customers to cut back on even some essential items or to search out lower prices at dollar stores.
Wal-Mart said profit in the third quarter ended 31 Oct. was $3.44 billion, or 95 cents a share, compared with $3.15 billion, or 82 cents a share, a year earlier. The latest results included a tax benefit of 5 cents per share.
Net sales rose 2.6% to $101.2 billion.
Earnings per share, excluding the tax benefit, were in line with analysts’ average forecast of 90 cents, according to Thomson Reuters I/B/E/S.
Wal-Mart said it now expects fiscal 2011 earnings per share of $4.08 to $4.12, up from a previous forecast of $3.95 to $4.05, reflecting the tax benefit and an expectation for a solid operational performance in its fourth quarter.
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First Published: Tue, Nov 16 2010. 05 19 PM IST
More Topics: Walmart | US | Profit | Merchandise | Promotion |