<<Bentonville, Arkansas, Nov. 9 (Bloomberg) -- Wal-Mart Stores Inc., the world's biggest retailer, said fiscal third-quarter profit rose 29 percent on increased U.S. and international sales.
Net income rose to $1.30 billion, or 29 cents a share, from $1.01 billion, or a split-adjusted 22 cents, a year ago. Sales in the three months ended Oct. 31 rose 21 percent to $40.4 billion from $33.5 billion.
Low prices on brand-name goods, promotions for Halloween and back-to-school merchandise and expanded grocery aisles helped draw shoppers to Wal-Mart's 2,485 U.S. stores. Now, the company is implementing its low-price strategy overseas. It cut prices on more than 2,000 goods at its newly acquired British supermarket chain, Asda Group Plc, setting off a discount war in the U.K.
``The company's focus now is international,' said Argus Research analyst Alan Mak, who has a ``buy' rating on Wal-Mart shares. ``Everyone knows they can execute domestically. Now the question is whether they can duplicate the success overseas.'
Wal-Mart, which at the quarter's end had more than 980 stores outside the U.S., said last month that its international division will open or relocate as many as 100 stores next year in countries where it already operates. The company, based in Bentonville, Arkansas, has locations in the U.K. and Germany, Canada and Mexico, Brazil and Argentina, and China and Korea.
In the U.S., the company had 1,803 Wal-Mart stores, 682 supercenters, which include full grocery departments, and 456 Sam's Club wholesale warehouses as of Oct. 31.
Wal-Mart shares rose 7/16 to 58 1/2 yesterday after touching a 52-week high of 59 3/16. The stock has gained 44 percent so far this year, the third-biggest increase in the Dow Jones Industrial Average behind Citigroup Inc. and Alcoa Inc.
Nov/09/1999 8:24 >> |
