CHICAGO - Wal-Mart Stores Inc. (WMT).(N) same store U.S. sales have fallen for two consecutive years, customers are struggling with the rate of unemployment and wages are not followed with increase in the prices of food and other bases.
Width of the largest retailer in the world to offset the impact of the crisis economic U.S., as sales at its warehouse clubs and international stores, reduce costs and share repurchases it helped to show an increase of 3.8% better than expected profit.
"Risk/reward on Wal-Mart stock is constantly improving, despite the painful American experience over the past two years," said analyst Gilford Securities Bernard Sosnick.
Shares of Wal-Mart, about 4% since the beginning of the year, skidded 1.1 55.49% $ Tuesday.
Wal-Mart is steadfast on its sales of fixation at U.S. stores open at least a year. Is the enlargement of its assortment of goods and focusing on the low prices to woo back customers who have chosen to shop elsewhere, including grocery stores and dollar.
"We do you think we get traction," said Chief Financial Officer Charles Holley. "But it is a work in progress".
Now, after seeing an increase in sales of same store groceries and articles in health and wellness for two consecutive quarters, Wal-Mart must find a way to get buyers to buy more clothes and other objects from the rest of the store.
Its U.S. core buyers are always on a budget and have concerns about rising gas and energy price of foodstuffs, and the questions of employment. At the same time, the owners of small businesses that shop at Sam's Club Warehouse stores remain concerned about the economy and their access to credit.
The United States same store sales fell by 1.1%, according to forecasts of the company of a decline of 2% flat and slightly better than the decrease in average of 1.3% provided by analysts according to Thomson Reuters.
"We recognize that we still have work to do, and comp sales growth remains the top priority for me and for the entire team of Walmart U.S." Wal-Mart, Director General Mike Duke said in a recorded appeal.
PAY CYCLE CONTINUES
Wal-Mart continues to see a cycle, where people help desk and that the money stock will spend less in months.
"If they have $ 20 to the left, which is all that they have and that is all that they can spend," said Holley.
Most of the decline in sales same store at the United States in the first quarter came from a store traffic drop, then the average shopper spent more.
Bad weather also outdoor sales. Wal-Mart is not only feeling pressure large snow storms and floods. Home Depot Inc. (HD)(N) and Lowes Cos Inc. (low.)(N) low experienced Spring application.
Wal-Mart earned $ 3.4 billion, or 98 cents per share, in the first quarter ended April 30, 3.3 billion, or 87 cents per share, a year earlier.
Sales increased by 4.4% to 103.42 billion.
Analysts expect earnings of 95 cents per share on 102.93 billion in sales, according to Thomson Reuters I/B/E/s
International sales rose 11.5%, with strong gains in all countries except for the Japan. At Asda, its British arm, the sales growth is much slower than the previous year.
Wal-Mart forecast second-quarter earnings of $ 1.05 to $ 1.10 per share, up 97 cents a year earlier. It expected sales and store the United States to be reduced by 1% to 1% increase.
The company has made steps to update its gains of the exercise by the forecast on the part of $ 4.35 to $ 4.50.
Analysts expect currently Wal-Mart to win $1.08 this quarter and $4.44 this year.
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