Bentonville, Ark., Wal-Mart Stores posted third-quarter earnings Tuesday of $2.86 billion, an 8% hike that beat Wall Street expectations and suggested that the company’s refocused price goals appear to be paying off.
Wal-Mart generated revenue of $91.95 billion in the period ending Oct. 31, up 8.8% from $84.47 billion a year ago.
According to president and CEO Lee Scott, it has been a tough year for consumers, but the company’s new focus on pricing is paying off. “We believe we are well positioned to win in this environment,” Scott said in a recorded call.
Scott said the company is trending positively in sales of home and apparel, an area in which Wal-Mart unsuccessfully sought to market to higher-income shoppers. The company has switched back to its emphasis on price.
“During the Christmas and holiday season, our price leadership position will benefit both our customers and the company. We have set the stage for a successful fourth quarter,” Scott said.
Third-quarter sales at stores open at least a year, not counting fuel, were up 1.5% in the company’s U.S. stores, same as a year ago. The company expects same-store sales for the fourth quarter to rise no more than 2%.