Ordinarily I wouldn't post this, but then these aren't ordinary times.....
Wal-Mart July sales rise 4.5 pct, may beat Q2 view
BENTONVILLE, Ark., Aug 8 (Reuters) - Discount retailer Wal-Mart Stores Inc. (NYSE:WMT - News) on Thursday reported sales at stores open at least a year -- same-store sales -- rose 4.5 percent in July, slightly less than its previous estimate and ahead of the important back-to-school season which will gear up this month.
In a monthly update, Wal-Mart, the world's largest retailer, also said it expects second quarter earnings to meet or possibly exceed its previous estimate.
Last week, Wal-Mart said it expected sales to be in the low end of its 5 percent to 7 percent growth range.
July is considered a low traffic month in retail as it falls between seasons. Summer merchandise sales are slowing and it is still early for back-to-school purchases, Wal-Mart said on a recorded call. In addition, last year consumers were spending their tax rebates on big ticket items, it noted.
The retailer said net sales at all outlets in the four weeks ended Aug. 2 rose 11 percent from a year ago to $17.79 billion. At outlets open at least year, sales at Wal-Mart discount stores rose 12 percent, and sales at its warehouse unit, Sam's Club, were up 7.3 percent.
In the update, the Bentonville, Arkansas-based company said it expects to meet or possibly exceed its previous earnings guidance of 44 cents to 45 cents per share for the second quarter. Earnings tracking firm Thomson First Call pegged Wal-Mart's second quarter earnings in a range of 44 cents to 46 cents a share with a mean at 45 cents.
Wal-Mart also said its earnings estimate for the year remains unchanged at $1.76 to $1.78 a share. Analysts estimates for the year range from $1.77 to $1.81, with a mean at $1.79, according to First Call.
Strong sales were generated in July in electronics, fabrics and crafts, girls and ladies apparel, pets and supplies, hardware, household chemicals, pharmacy and food, the retailer said.
While the back-to-school season has yet to ramp up, Wal-Mart said early sales of school supplies and backpacks are at or slightly better than last year. A change to cooler weather is expected to drive apparel sales.
As of July 31, 2002, Wal-Mart operated 1611 Wal-Mart stores, 1156 Supercenters, 512 SAM'S CLUBS and 34 Neighborhood Markets in the United States. Internationally, the company operated units in Argentina (11), Brazil (22), Canada (196), China (20), Germany (96), Korea (12), Mexico (575), Puerto Rico (18) and the United Kingdom (255). |
