Third quarter results show signs that tough economy affecting world’s largest retailer
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Walmart Stores Inc. (Bentonville, Ark.) announced net sales for third quarter of fiscal year 2010 increased 1.1 percent to $98.667 billion, compared to $97.619 billion in the third quarter last year. However, U.S. sales at stores open at least a year, a key indicator of retail health, declined 0.4 percent (not including fuel) for the 13 weeks ended October 30. For that same period a year ago, same-store sales grew 2.5 percent. Among its divisions, Walmart U.S. saw same-store sales drop 0.5 percent (with or without fuel), while Sam’s Club sales rose 0.1 percent (without fuel).
"The sales environment continued to be difficult this quarter, but customer traffic is up throughout the company,” says Mike Duke, Walmart president and ceo. “We gained market share, especially in the United States, the United Kingdom and Mexico.”
The world’s largest retailer says increased productivity and improved inventory management contributed to the financial performance.
Value-priced clothing chain Kohl’s (Menomonee Falls, Wis.), also reported strong earnings as the retailer made a profit of $193 million during the third quarter, compared to $160 million, a year ago. Same-store sales for the period rose 2.4 percent from a year ago.
President and ceo Kevin Mansell attributes the strong results to good inventory management and the popularity of the chain’s exclusive brands.
Both Walmart and Kohl’s have been among the best-performing chains during the recession as consumers focus on pricing and value.
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