Walmart Q3 sales miss Street, profit rises year-over-year
Bentonville, Ark. — Wal-Mart Stores Inc. reported Thursday net income of $3.64 billion for the quarter ended Oct. 31, up from $3.34 billion in the year-ago period.
Sales rose 3.4% to $113.20 billion, as U.S. sales beat internal expectations but overall missed Wall Street’s expected $114.96 in revenue.
Wal-Mart U.S. saw same-store sales rise 1.5%, marking the fifth consecutive quarter of same-store sales growth after nine straight quarterly declines. At Sam’s Club, same-store sales rose 2.7%, excluding fuel.
The Walmart U.S. unit forecast a 1% to 3% increase in same-store sales for the fourth quarter, when it will be helped by customers’ final payments and pick-ups of third-quarter layaway items.
"Current macroeconomic conditions continue to pressure our customers," Charles Holley, CFO, said. "The holiday season is predicted to be very competitive, but we are very well prepared to deliver on the value and low prices our customers expect."
International sales rose 2.4% to $33.16 billion, but sales in Japan fell 1.8%. “Across all of our markets, we are seeing the same price consciousness as we do in the United States,” said Mike Duke, Wal-Mart Stores president and CEO.
In related news, Wal-Mart revealed Thursday it is investigating allegations of potential FCPA violations in a number of countries, including Brazil, China and India.
Target Q3 profit beats Street
Minneapolis — Target Corp. reported Thursday net income of $637 million for the third quarter, compared with $555 million in the prior-year period and beating Wall Street expectations.
The retailer previously reported that sales rose 3.4% to $16.60 billion in the quarter, and same-store sales climbed 2.9%.
Target is forecasting a fourth-quarter earnings range that at the high-end tops estimates.
Starbucks acquires Teavana for$620 million in all-cash deal
Seattle — Starbucks Coffee Co. announced Wednesday it will acquire specialty tea chain Teavana Holdings for $620 million in a move to gain traction in the $40 billion global tea industry.
According to Starbucks chairman, president and CEO Howard Schultz, the coffee company plans to grow and expand Teavana’s 300 mall-based stores as well as add a neighborhood store concept to accelerate Teavana’s domestic and global footprint.
Teavana, based in Atlanta, went public in July 2011. Its founder Andrew Mack said the company will continue to operate from its Atlanta home base.
“Being part of Starbucks will give us access to incredible industry knowledge and know how as well as the financial strength to super charge our business and allow us to continue our rapid growth to the benefit of all our supporters, including our dedicated employees worldwide,” Mack said in a statement.