Glenn, I'm told Wal-Mart still spends a *ton* on IT. That appears to give it a competitive edge.
August 14, 2002
Wal-Mart Stores Inc. reported a 26 percent rise in second-quarter profits, beating the consensus of industry analysts for per share earnings by a penny. The company earned $2.04 billion, or 46 cents per share for the three months ended July 31, compared with $1.62 billion, or 36 cents per share, in the year-ago period.
"For the first time in our history, we generated over $2 billion in net income in a nonholiday quarter," Wal-Mart chief executive Lee Scott said in a statement.
Citing a slowing in business at the end of the second quarter, the company lowered its forecast for sales at stores opened at least a year, known as same-store sales, for the third quarter. Same-store sales are considered the best indicator of a retailer's health.
Wal-Mart now expects same-store sales gains in the range of 4 to 6 percent in the third quarter. That's down from the previous 5 to 7 percent increase, but that had been upgraded from a 3 to 5 percent estimate earlier in the year.
Second-quarter earnings last year were hurt when the retailer reduced prices in response to a failed price-cutting plan by Kmart to grab more market share. Kmart filed for bankruptcy protection in January and has closed 283 stores.
Wal-Mart has benefited from picking up former Kmart shoppers as the economy recovered from last year's recession, analysts have said. |
