Wal-Mart's low prices piqued the appetites of bargain shoppers in the third quarter, raising the kingpin's earnings slightly above Wall Street views, according to an Investor's Business Daily story posted to Wal-Mart's web site.The world's top retailer expects a stronger dollar will hurt overseas sales in the fourth quarter. But Wal-Mart says it's upbeat about the holidays, given its price leadership position during these rough times. The discount giant earned 77 cents a share, up 12% from a year ago and a penny over forecasts. Sales rose 7.4%to $98.64 billion.
But even Wal-Mart, which has been among retail's top performers this year, hasn't been immune to the rough economy. Third quarter sales gain was the weakest in years. Same-store sales grew 3% vs. a year ago while most retailers suffer declines. Wal-Mart shares swung with the overall market, closing up 4%.
The retail giant's low prices on national brands and broad array of products are striking a chord with consumers struggling to make ends meet in today's tough economy. "Their value proposition is resonating with its core customer in this environment," said Morningstar analyst Joseph Beaulieu. "Their customers are going to Wal-Mart for food and other necessities and doing one-stop shopping while they're there." MORE>>I don't have the dough this year to do a lot of my shopping at Macy's and Nordstrom but don't know how much if any lot of my hard-won loot will be spent at Sam Walton's. Will you shop extensively at Wal-Mart for Christmas gifts this year?
image: Cleanmpg.com
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