Wal-Mart Sells Beyond Forecasts
by January 21, 2002 12:00 am 87 views
Wal-Mart Stores Inc. on Jan. 10 said its sales at stores open at least a year grew 8 percent in December, topping company forecasts during a time of economic uncertainty nationwide.
Wal-Mart had forecast its sales growth to reach 4 percent to 6 percent. Wall Street analysts’ estimates ranged from 5 percent to 8 percent.
Wal-Mart said net sales in the five weeks ended Jan. 4 rose to $28.84 billion up 16.2 percent, from $24.82 billion in the same year-earlier period.
At stores open at least year, sales at Wal-Mart discount stores rose 8.2 percent last month, while sales at its warehouse unit Sam’s Club were up 7.1 percent.
Even though December sales were better than expected, Wal-Mart said on a recorded conference call that it is sticking with its fiscal fourth-quarter earnings forecast of 48 cents a share because of continued pressure on gross margins.
The discount giant said more customers are shopping, but they are buying lower-priced items.
Analysts polled by Thomson Financial/First Call on average expected Wal-Mart to report a profit of 48 cents.
n Wal-Mart announced on Nov. 20 that John Fleming, Walmart.com’s senior vice president of merchandising, was being promoted to chief operating officer of Walmart.com.
Fleming, 43, will succeed Jeanne Jackson, Walmart.com’s chief executive, who announced she will leave the company after the 2001 holiday season.
Like Jackson, Fleming will report to Tom Schoewe, executive vice president and chief financial officer for Wal-Mart Stores Inc.