AP News, July 12th, 2007
Wal-Mart Stores Inc., the world's largest retailer, said Thursday same-store sales in June rose 2.4 percent excluding fuel sales, soaring past the average analyst estimate of a 0.8 percent increase.
The company also maintained its second-quarter earnings guidance, saying its target range is achievable despite a tough environment.
Total sales for the five weeks ended July 6 rose 9.4 percent to $35.81 billion from $32.74 billion, with the namesake Wal-Mart Stores chain posting a 7.1 percent sales gain, to $22.94 billion.
Sales at Sam's Club warehouse chain rose 9.6 percent to $4.42 billion, and international sales climbed 15.9 percent during the month to $8.45 billion.
Same-stores sales in June excluding fuel sales rose 1.6 percent at Wal-Mart Stores and 6.9 percent at Sam's Club stores. Same-store sales in June 2006 rose 1.3 percent companywide.
Same-store sales, or sales at stores open at least a year, are a key measure of retailer performance, because they measure growth at existing stores rather than from newly opened ones.
Looking ahead, the company sees July same-store sales growth of 1 to 2 percent and second-quarter earnings-per-share guidance of 75 cents to 79 cents, versus the average analyst estimate of 77 cents, based on a Thomson Financial survey.
"We remain in a challenging environment, but still believe the earnings guidance for the quarter is attainable," said Tom Schoewe, executive vice president and chief financial officer, in a statement.
According to Wal-Mart, high gas prices are the chief concern of its customers.
The company said grocery sales were stronger than general merchandise sales in June, excepting entertainment merchandise including flat panel televisions, MP3 players, video game hardware and accessories, laptops and desktop computers, which had "significant" year-over-year gains.
Home and apparel sales remained slow, Wal-Mart said.
In premarket trading, Wal-Mart shares added 82 cents to $48.50.
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