Wal-Mart reports 0.4 percent same-store rise

Source: Retail Digital

Date :08/11/2007 09:40:24

Wal-Mart Stores Inc on Thursday reported a lower-than-expected rise in October sales at its U.S. stores open at least a year, and forecast tepid sales gains for November.

The world’s largest retailer said U.S. October same-store sales rose 0.4 percent, excluding gasoline sales. Analysts, on average, were expecting same-store sales to rise 1.1 percent.

Wal-Mart forecast November U.S. same-store sales would be flat to up two percent. Last year, November U.S. same-store sales fell 0.5 percent.

Flat sales

In October, it said, grocery sales continued to outpace sales of general merchandise at its Wal-Mart Stores, while the toy recalls of recent months weighed on toy sales.

Sales of apparel and home goods were also soft.

October sales at its Wal-Mart stores open at least a year were flat, while same-store sales were up 2.7 percent at its Sam's Club warehouse divisions.

Net sales in the four weeks ended November 2 rose 8.4 percent to $27.92 billion.

Wal-Mart said its U.S. stores have a "healthy inventory position" going into the holiday season, and markdowns as a percentage of sales were lower than plan for the third quarter.

November 8 2007