Confident Wal-Mart raises forecasts
Improved Christmas sales expected by world’s biggest retailer
Wal-Mart has raised its full-year earning forecasts after strong third quarter sales and signs of robust Christmas sales to come.
The world’s biggest retailer has raised its forecasts for the year to between $2.39 to $2.41 a share from a previous estimate of between $2.34 and $2.38. Third quarter sales grew by 9.7 per cent to $68.5bn, generating profits up 12.7 per cent to $2.3bn.
Across the first nine months of the year, total sales have risen by 11.6 per cent to $203bn. The US Wal-Mart business saw growth of 10.4 per cent while sales at the Sam’s Club warehouse operation grew by 8.6 per cent. International sales, including Asda in the UK, grew by 18.7 per cent to $39.4bn.
Lee Scott, Wal-Mart president and CEO said, “I am pleased to report another record quarter of sales and earnings. The economy continues to improve and we are well positioned for the holidays. With the help of our associates, I look forward to another record quarter and a successful holiday season.”
In a conference call, Scott said profit margins and sales growth in Wal-Mart’s US stores need to improve, but the company expects a strong finish to the year. He said: “I believe sales momentum will accelerate into the holidays. We should have a better Christmas than last year.”
