Wal-Mart Comps Up 2.7 Percent In June
by July 21, 2003 12:00 am 72 views
Warm weather in late June helped boost same-store sales at Wal-Mart Stores Inc. to 2.7 percent for the month. But that was still below the 3 percent analysts had expected and pales when compared to Wal-Mart’s 7.9 percent growth in June comps a year earlier.
The world’s largest retailer had predicted comparable-store sales would increase 2-4 percent for the five weeks ended July 4. In June 2002, Wal-Mart’s same store sales — a key measure of performance in the retail industry — jumped by 7.9 compared to the previous June.
Total sales for June 2003 were up 11 percent to $24.6 billion, from $22.2 billion for the comparable period of 2002. Both figures exclude sales from McLane Co. Inc., which Wal-Mart sold in May.
Same-store sales, or sales at stores open at least a year, rose 2.4 percent at the Wal-Mart division, which was below the Thomson First Call consensus estimate of 3.1 percent. In June 2002, the Wal-Mart division had an 8.7 percent increase in comparable-store sales.
But same-store sales at the company’s Sam’s Club warehouse unit grew 4.1 percent in June 2003, almost double the 2.1 percent analysts had been expecting. Historically, Sam’s Club has lagged behind Wal-Mart’s other divisions in sales performance. But Sam’s Club also had a 4.1 percent increase in comps for June 2002.
The International Division saw comps increase by 2.7 percent in June 2003, but overall sales for the division were up 20 percent to $4.56 billion.
Despite the disappointing performance last month, Bentonville-based Wal-Mart is predicting a 2-4 percent rise in July sales. Based on current momentum, Wal-Mart expects growth to be at the high end of that range.
Wal-Mart said warm summer temperatures boosted sales of seasonal apparel and air conditioners and is helping reduce inventories.
The strongest product categories in June were food, pet supplies, live plants, office supplies, auto merchandise and over-the-counter pharmaceuticals. Wal-Mart’s stores in the Northeast and Midwest proved strongest.
By comparison, Wal-Mart’s rivals didn’t fare so well. Target Stores had a 0.8 percent increase in same-store sales in June. Sears Roebuck saw same-store sales decline by 1.8 percent for the month. Kohl’s same-store sales dropped by 2.4 percent. And J.C. Penny’s comps rose a meager 0.1 percent.