Sales at Wal-Mart Increase

Wal-Mart earned a rare increase in an important measure for sales during the recent third quarter as it posted profits that were better than Wall Street projections on Thursday.

However, the largest retailer in the world issued a profit outlook for the fourth quarter that missed Wall Street estimates due to expected deep discounting during the holidays.

The quarter marked two complete years of declines in store traffic at Wal-Mart U.S. stores.

JC Penney, Kohl’s and Macy’s all posted results during this week that showed their shoppers were still cautious heading toward the holiday shopping season.

Wal-Mart is in itself a barometer for consumer spending. Its challenges are a reflection of the struggles of it shoppers that are low income, who have become squeezed due to stagnant wages and lower food stamps offered by state governments.

However, Wal-Mart said there is potential help: Gas prices falling that could help put additional money into the pockets of shoppers.

To earn its shares of the dollars spent during the holidays, Wal-Mart has announced a plan that is very aggressive, which includes free shipping on 100 items and cuts in prices for 20,000 products.

Starting November 14, Wal-Mart will match prices online at Amazon in its own stores. Managers of 50% of Wal-Mart stores had already started to offer the price matching, but now the policy is official.

Doug McMillon the CEO, who took over this past February, said the price leader is a priority for Wal-Mart that is ongoing and with each year, it becomes even more important at the time of the holiday shopping season.

McMillon added that he is encouraged by an increase in sales at Wal-Mart stores, but he is not satisfied with overall performance.

Wal-Mart posted earnings of just over $3.71 billion equal to $1.15 a share, in the quarter that ended October 31.

Wal-Mart, which is Bentonville, Arkansas, based reported revenue of over $119 billion for that period, which beat forecasts on Wall Street that were expecting $18.4 billion.

The discount division for Wal-Mart in the U.S. posted an increase of 0.5% for revenue in stores that were opened 13 months or more. That increase represented the first for the past seven quarters.

 

Latest News

Oracle Buying Textura at a Price of $663 Million
Oracle Buying Textura at a Price of $663 Million
AB InBev Offering More Assets of SABMiller in Europe to Win EU Approval
AB InBev Offering More Assets of SABMiller in Europe to Win EU Approval
Verizon Working With Authorities On Sabotage Incidents
Verizon Working With Authorities On Sabotage Incidents
UPS Profit Increases During First Quarter by 10%
UPS Profit Increases During First Quarter by 10%
FY2016 EPS Estimates for Bank of Marin Bancorp  Lifted by Analyst
FY2016 EPS Estimates for Bank of Marin Bancorp Lifted by Analyst
KeyBanc Equities Analysts Lift Earnings Estimates for Brandywine Realty Trust
KeyBanc Equities Analysts Lift Earnings Estimates for Brandywine Realty Trust


Leave a Reply

 
 

Parse error: syntax error, unexpected end of file in /home/vistavoice/public_html/wp-content/themes/newswire-light/footer.php on line 117