Wal-Mart profit rises 9.3% in Q3
Bentonville, Ark. — Wal-Mart Stores reported Tuesday that profit for the quarter ended Oct. 31 rose 9.3% to $3.44 billion, largely on strength from its international operations, and upped its full-year earnings forecast. However, the chain continued to struggle at home with declining same-store sales as its shoppers deal with economic uncertainty.
While Wal-Mart’s earnings were in line with analysts forecasts, its revenue fell short of expectations. The retailer reported $101.2 billion in revenue for the third quarter, up 2% from $98.7 billion in the year-earlier quarter. Analysts had forecast revenue of $102.2 billion.
Same-store sales in the United States declined 1.3% as Wal-Mart’s shoppers remain under pressure in a weak economy. It was the sixth consecutive quarterly decline at the world’s largest retailer.
Saks income up in Q3
NEW YORK For the third quarter ended Oct. 30, Saks recorded net income of $36.3 million, or 20 cents per diluted share. For last year’s third quarter ended October 31, 2009, the company posted net income of $6.3 million, or 4 cents per share.
Stephen Sadove, chairman and CEO, noted, “I am pleased with our third quarter operating performance. The year-over-year improvement was primarily driven by our continued comparable store sales growth and gross margin expansion.
“Our 5.7% third quarter comparable-store sales increase was consistent with our expectations, and was achieved even as we continued to strategically reduce our promotional activity.”
Home Depot grows sales and income in Q3
The world’s largest home improvement retailer rolled out its fourth straight quarter of positive comp-store sales. The Atlanta-based company also increased net earnings to $834 million, up 21% from $689 million in the same quarter last year.
“Our third quarter sales reflect the fourth consecutive quarter of positive same store sales for our business,” said Frank Blake, chairman and CEO. “As the business stabilizes, we continue to improve our operational performance. We are exercising good control over our expenses but we’re also investing in the business to drive improvements across customer service, merchandising and our supply chain. I want to thank our associates for their hard work and dedication.”
Sales for the third quarter totaled $16.6 billion, a 1.4% increase from the third quarter of fiscal 2009. Comparable-store sales for the third quarter were positive 1.4%, and comp-sales for U.S. stores were positive 1.5%.
Home Depot lowered its sales expectations. Based on its year-to-date performance and expectations for the remainder of the fiscal year, the company now expects sales to be up approximately 2.2% for the year, instead of the 2.6% gain it had expected previously.
At the end of the third quarter, the company operated a total of 2,244 retail stores, which included 1,976 The Home Depot stores in the United States.