Wal-Mart Stores, Inc. (NYSE: WMT) reported Q3 earnings before the bell this morning, and the world's largest retailer bested Wall Street estimates as quarterly profits rose 8% on improved U.S. performance and growth in international markets. The operative words in that previous sentence, however, are "improved U.S. performance." That's the big fish many analysts were hoping for.Net income for the Q3 period rose to $2.86 billion from $2.65 billion a year ago, while earnings per share grew to $0.70 from $0.63. Total revenue grew to $91.95 billion from $84.47 billion a year ago as well. And, almost hitting double digits, Wal-Mart's net sales rose 9% as well from the year-ago quarter. International growth was responsible for a decent portion of that sales growth, with 16.9% year-over-year growth, while domestic sales rose 6.4% from the same period. Is that a decent figure or not? Based on the hellish conditions 2007 has brought on, from energy prices to housing market stagnation to dry credit holes from lenders, it's impressive.
Does this mean that "Wal-Mart is back," to borrow an axiom oft-repeated in the news media? Nope; the next quarter and then the entire next fiscal year will tell that tale. CEO Lee Scott did say that "Our results for the third quarter reflect the improved performance of our U.S. operations. Both Wal-Mart Stores U.S. and Sam's Club increased profits faster than sales. Wal-Mart International posted a solid quarter as well."
That is very true. The doom and gloom seen from media coverage of Wal-Mart fell a little short this quarter, but one quarter doesn't make a rebound or any kind of resurgence for that matter. Wal-Mart did something right in Q3 -- was it lowering prices to scrape more customers off the street and into stores? That's definitely a possibility.
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Reader Comments (Page 1 of 1)
11-13-2007 @ 11:03AM
42 said...
You forgot to add that WMT only expects Q4 growth to be 0-2%. That's the Xmas season. Merry Grinchmas.
11-13-2007 @ 11:08AM
42 said...
Oh and WMT goes up in bad times. Don't overlook the bigger picture.
11-13-2007 @ 11:57AM
warren said...
I have to laugh because all the people that say they hate Walmart, shop there. You do save lots of money over the long run shopping there. Also almost every store has the majority of items made in China. This is the way of the United States and not just Walmart. They also treat their workers no worse and in fact better then most of the other chain stores. They pay better and offer more benefits to their workers. How much should a worker at Walmart expect to be paid? Try Target, K-Mart, Supermarkets, or any Fast Food. You will see Walmart is better. Is it great? No it is'nt. A reason to go to school and get a skill.
11-13-2007 @ 1:10PM
Brockage said...
"Oh, frabjous day...." -- Lovin' the Live Better - Save Money gang and thanking the gods of retail that Wal-Mart posts a great report and doesn't lower expections for the upcoming quarterly report. Great to see a ray of light in an otherwise maybe bleak retail season. Go associates!!!!
11-19-2007 @ 7:24PM
Gerri1936 said...
Editor Brian White, needs to take Note, Wal Mart has changed their LOGO , a long while ago... I can only say , if people hate Wal Mart so badly, why do they all shop there and then gripe about how bad Wal Mart treat their employees ... Only because they know they find the best buys there and can Bitch at the same time... Makes for a double High ...
The law suit that was just settled , was wrongfully done, A sign is posted by each time clock , You must be clocked in to do any labor ............... and the people who worked off the clock , only did so to try to Make some Brownie points .. Nada so they sued ...