Wal-Mart reports gain in revenue at US stores
16 Nov 2011
Wal-Mart Stores Inc reported a quarterly gain in revenue at US stores, in a reversal of nine straight quarters of declines, but the firm's overall third-quarter profit was down 2.9 per cent.
For the three months that ended 31 October, the largest US retailer posted a profit of $3.3 billion, or 96 cents a share. This was down 2.9 per cent, or 95 cents, from $3.4 billion a year earlier.
Wal-Mart executives said yesterday that the retailer was focused on low pricing to attract customers who remained thrifty and pessimistic about the US economy.
According to Wal-Mart chief executive Michael Duke who spoke on a conference call, customers were juggling credit cards, using coupons and skipping restaurants and vactions. He added there was a real sense that the economic strain was taking a heavy toll.
The Bentonville, Ark, company made a false move with its decision to de-clutter its stores over the last few years with the removal of thousands of products from its shelves in a bid to de-clutter its stores. The company then reversed its decision in April and expanded its offerings by 8,500 items or 11 per cent for an average store.
According to Duke the company would continue to emphasis on competitive prices with a price-match guarantee.
According to the company's forecast fourth-quarter earnings are expected to range from $1.42 to $1.48 a share, up from $1.41 a year earlier, while its earnings guidance for the full year would be $4.45 to $4.51 a share, up from $4.18.
