Wal-Mart 2Q Net Grows; Announces AC/DC Deal
by August 25, 2008 12:00 am 64 views
Wal-Mart Stores Inc. of Bentonville bucked the retail sector trend of declining profits with a 17 percent improvement versus the second quarter in 2007.
It earned $3.45 billion, or 87 cents per share, in the quarter ended July 31, up from $2.95 billion, or 72 cents per share, a year earlier.
Wal-Mart’s same-store growth on the year is 4.5 percent versus 1.9 percent through the same period in 2007 and another indication the discount retailer is gaining market share from its competitors.
Profit at Target Corp. is down 7.6 percent through the second quarter and same store sales have declined 0.4 percent. J.C. Penney Co. showed a 36 percent profit drop; The Home Depot Inc. reported a 24 percent profit decline.
Wal-Mart raised its earnings guidance for the year to a projected $3.43 to $3.50 per share, up from its previous range of $3.30 to $3.43. The retailer cautioned the rest of the year would remain difficult as energy costs remain high and the last of the economic stimulus checks were mailed in the second quarter.
Wal-Mart’s sales continue to increase internationally as well. Its international sales rose 19.3 percent to $25.3 billion.
Besides the usual boost from Black Friday and the Christmas shopping season in the fourth quarter, Wal-Mart will seek an influx of metal heads after announcing another exclusive record deal on Aug. 18, this time with AC/DC.
AC/DC will release its first album of new recordings in 15 years, titled “Black Ice,” on Oct. 20. A DVD of the band’s famous 1996 concert in Madrid will be available on Sept. 9.
The first single from the album, “Rock ‘N Roll Train,” will be released on Aug. 28.
Wal-Mart has partnered with Garth Brooks, The Eagles and Journey for exclusive deals in the past few years. The Eagles “Long Road out of Eden” sold 3 million copies at Wal-Mart after its release last fall.