Wal-Mart December Sales Disappointing

NEW YORK — Wal-Mart Stores Inc. said Thursday that its December sales at established stores edged upward, but the gain was less than analysts expected and the discounter cut its earnings forecast for the rest of its fiscal year.

The world's largest retailer has been one of the few standouts in retail as shoppers cut back on spending and focus on necessities at discounters. But even Wal-Mart was not immune to the holiday gloom, as sales at its Sam's Club warehouse stores were lower than expected.

Its shares closed down 7.5 percent, falling $4.16 to $51.38.

December same-store sales, or sales at stores opened at least a year, rose 1.2 percent, with a 1.9 percent gain at Wal Mart and a 3.2 percent drop at Sam's Club. Excluding the impact of declining gasoline prices at the pump, the gain was 1.7 percent with a 1.9 percent rise at Walmart U.S. and a 0.1 percent rise at Sam's Club.

Analysts surveyed by Thomson Reuters had expected a 2.8 percent increase, and Wal-Mart forecast a rise of 1 percent to 3 percent, both excluding the impact of declining gas sales.

Total sales for the five weeks ended Jan. 1 edged down 0.1 percent to $46.51 billion from $46.57 billion last year. International sales fell 10 percent to $10.71 billion, hurt by the stronger dollar.

In the U.S., groceries and health supplies were the biggest sellers and electronics were "solid," Wal-Mart said, but apparel and jewelry sales were weak.

Winter storms caused 40 stores to close temporarily during the holidays.

At Sam's Club, grocery sales were strong but general merchandise _ usually a strong seller during the holidays _ remained weak. Also, business customers pulled back.

"Our members were clearly cautious with their discretionary spending," said Doug McMillon, Sam's Club president and chief executive. "Our small business members in particular continue to face more pressure from today's economy and also are more selective in their purchases."

The Bentonville, Ark.-based retailer said weakness overall is continuing, as fourth-quarter sales at both Sam's Club and Wal-Mart International are below expectations and expenses are higher than expected.

Wal-Mart said it now expects to earn 91 cents to 94 cents per share in the fourth quarter from continuing operations, down from the previous forecast for $1.03 to $1.07 per share. Analysts expect earnings of $1.06 per share.

The company expects January same-store sales, which it reports Feb. 5, to be flat to up 2 percent.

Comments

[johnnyjust]

Love Wal-Mart. Biggest private employer on the planet, while the rest of you sit at home with your pants down and help no one.

[UnionRebelGirl]

Walmart IS the axis of evil! DO NOT SHOP THERE! Better bets: buy in a Union shop or buy local!

[Trebor1]

You might be a rebel girl but to me you are a precious pearl!!

[wpiv926]

The Waltons would steal the pennys from their relatives eyes while they lay in their cascets if no one was looking.

[DavidATolucaLake]

The owners of Wal-Mart are all billionaires and they still cant find a way for their employees to receive health coverage.

Ah, those good old fashioned Mid West family values.

What would Jesus do? Apparently wait until he becomes a trillionaire.

[dandypuddin]

Arkansas ain't the midwest, David. Trust me, I was born in Iowa. It's the South.

[AustinMillbarge]

True, Arkansas isn't in the "midwest," but the fact remains: Four Waltons are on the Forbes top 10 richest Americans list and yet they can't even provide their employees basic health care benefits. Now, I'm not one for class warfare, but as the nation's largest employer, they need to be responsible and be held to higher standards. I'm doing some work with Wake Up Walmart and encourage all of you to join. I agree with the comment above that Walmart is experiencing bad karma with these decreased sales.

[harriettubman]

Yeah, all billionaires but all good things must come to an end. If they're not doing right by their employees they will see it come back to them. I believe Karma has already arrived. Anytime Walmart doesn't do well during the holiday season, tells you things are on the downslide.

[Trebor1]

Those P E C K E R W O O D S aren't from the mid-west. And, I don't care how rich they are, they are still P E C K E R W O O D S

[joycehelene]

They have more money that G--D, I am not going to worry about them.

[Mac18]

Sweet Jeebus!! THE WORLD IS ENDING!! LOL

[Natalie4Obama]

I've been boycotting Walmart since watching the High Cost Of Low Prices and I am delighted to see they are not doing well. I am sure the Black Friday incident was not very good PR.

A dollar spent at Walmart is a dollar supporting a company that doesn't care about it's workers.

[SouthJerseySteve]

And thousands of Chinese workers are becoming unemployed.... they may have to go back to work in the rice fields.

[wdw505]

"A dollar spent at Walmart is a dollar supporting a company that doesn't care about it's workers."

so

[dandypuddin]

Or its country.

[spinns17]

as theysay .dont bite the hand that feeds you.low price ,lower wages,live better .lol i still cant see how this works,to me its a 0 gain.

[CologneCitizen]

If Walmart could manage to get rid of that horrible smell in their stores, maybe more people would shop there. The nationwide stench of poverty and failure keeps potential away. Who wants to smell like a loser ?

[dandypuddin]

stop it.

[BabsfromKansas]

Walmart?
and Macy's?
and Sears?
Oh My!

[spinns17]

so now were going to have to bailout walmart.the people who forced so many companies to open up companies overseas.there part of the reason were in the shape were in now.hope scabmart goes under.

[LINY516]

I would love for Walmart to go out of business.

However, the bread and circuses group, which is growing by leaps and bounds, is too stupid and/or too indifferent to care if they are destroying this country and proping up China. The people in this group tend to be the first to lose their jobs because of downsizing and outsourcing. So, in some respect, they're defecating on themselves, but smiling all the way home with their Walmart bags.

[AZterritory]

Yeah, remember when Sam Walton wanted to push USA-made stuff before anything else? He's spinning in his grave so fast you could run an electric generator off him . . . .

[wdw505]

then hook him up ........alternative energy .......woo whooooo

[DavidATolucaLake]

Wal-Mart. Exploiters-R-Us.

Whether its their American employees or Communist run, slave wage workers in Asia, who produce most of their products.

I have never stepped foot in a Wal-Mart, never will.

[wdw505]

at least they are not unionized

[spinns17]

union lol.they just bust them ,and sellout this country.maybe when i get old ill be a greater at scabmart.bunch of losers work there only.and i could end up being president of the company .lol

[dandypuddin]

It's the anti-union guy, WD40 again. Go shop at Wal Mart. Knock yourself out.

[dandypuddin]

i did once years ago to see what they were like. I had to leave. It was messy and cheap cr@p was overflowing everywhere. Back to Target for me.

[drymartini1]

it has become almost fashionable to bash Walmart these days. ridiculous.

Nobody is forcing you to shop at walmart but a lot of people choose to do so. if you dont like Walmart, go shop at Target, Kohls, Costco whatever.

[blastocyst]

Too many have no choice in the matter.
WalMart* creates and fills the need for itself.
Vicious and insidious circle.

[unite4change]

drymartini1, some can't afford the costs of membership to Costco.

[sandiegoconservative]

What always makes me laugh is that DimLibs rush out and purchase items sold at Wal-Mart and other stores, then bash chinese made products. Or American made products. or products made anywhere else, just because Wal-Mart carries it. I find tons of American made products there that are less expensive to purchase at Wal-Mart because of inventory agreements.

My neighbor is a huge DimLib who does this. She also railed against Wal-Mart driving small businesses out of the area, and now works in a revitalized shopping center in lemon Grove that has over 12 new small businesses because of the Wal-Mart store anchor. The "mall" area had one store which was going out of business before Wal-Mart showed up.

[dandypuddin]

But how many small and mid sized manufacturers did your lovely anchor Wal Mart put out of business?

[dandypuddin]

There is a reason why Wal Mart is always the retailer that gets the attention for not being a good corporate citizen. It has nothing to do with being fashionable. It Target or Penney's or Costco operated the way Wal Mart has over the years, they would be "bashed" also. But they don't.

[unite4change]

Almost every items Wal-mart sells is made in China. So Americans should know, the cost of production of these items are pennies on a dollar; however, the savings are not extended to Wal-mart consumers. If it cost you $1.50 to make a toy, then why would you charge $50 for that same toy, because you can. Wal-mart is quickly becoming a monopoly. They can do this because they set up shop in our communities, drive other businesses out of business, leaving Wal-mart the sole retailer.

[dandypuddin]

The real tradegy isn't the retailers Wal Mart is putting out of business, it's the small and medium sized local manufacturers of American made products and parts. That is there true corrosive effect on our country. If you care about your country, you will never shop at Wal Mart.

[unite4change]

Dandypuddin, you're right, I omitted that fact.

[blastocyst]

Well, tickle my Elmo.
We need to breed lead-resistant kids hard-wired to download games right off of the 'Net. A Super-race.

[tomas0808]

I will never go in a walmart. If they have something you find you need to buy, find a local store and pay a little more. I refuse to go Netflix. I rent videos from a local place. I have to actually go into the store and pick up the video. And I'm disabled. It's quite a bit more expensive, but these monopolies are destroying our country. Easier is not always better