New Wal-Mart Stores Exceed Expectations

Wal-Mart Stores Inc. said sales at its stores open at least a year rose 6.9 percent in June, well above analyst expectations.

Wal-Mart and Wall Street analysts expected an increase of 3 to 5 percent. But the better-than-expected increase didn’t prompt a revision in the world’s largest retailer’s outlook, as Wal-Mart said it would not change its earnings guidance for the second quarter. Wal-Mart expects growth similar to that of the first quarter with estimates of 37 cents per share.

Net sales in the five-week period ending July 6 increased 14.6 percent to $20.51 billion from $17.9 billion a year ago, Wal-Mart reported. Meanwhile, same-store sales at Wal-Mart discount stores rose 6.8 percent last month, while sales at its Sam’s Club stores increased 7.1 percent.

On the whole, discounters like Wal-Mart and Kmart Corp. of Troy, Mich., the nation’s second-largest retailer, outperformed department stores like Little Rock-based Dillard’s Inc., as consumers purchased household items but held off on apparel.

Kmart reported that June same store sales (at stores open at least a year) rose 1.1 percent from the same month last year.

n Wal-Mart retained its position as the largest U.S. retailer in terms of annual sales last year and food retailer Kroger Co. stayed in the No. 2 spot, while home improvement giant Home Depot Inc. knocked off Sears, Roebuck and Co. to take the No. 3 spot, an annual survey by a retail trade group found.

Retail industry sales as a whole in 2000 rose to $3.4 trillion, up 7.1 percent from 1999, according to the survey of the top 100 retailers compiled by the National Retail Federation and technology company Triversity Inc.

Wal-Mart’s rival, Kmart Corp., is the nation’s fifth largest retailer, followed in descending order by grocery store chain Albertson’s Inc., Target Corp., J.C. Penney Co., Costco Wholesale Corp. and grocer Safeway Inc.

The nation’s top 10 retailers had total sales of $536 billion in 2000, or more than half the total sales of the top 100 retailers. Wal-Mart alone had 2000 sales of $193.3 billion.

n On July 6, Wal-Mart Stores Inc. filed with the U.S. Securities and Exchange Commission to sell, from time to time, up to $6 billion in debt securities.

The world’s largest retailer plans to use the proceeds from the shelf offering for debt repayment, capital spending and other general corporate purposes, it said in the SEC filing.

The shelf registration includes any guarantees of debt securities that will be issued by three of its finance subsidiaries, the company added.