Retail giant Wal-Mart Stores Inc. (WMT), considered a bellwether for the industry, is slated to announce its third-quarter results before the market opens Thursday. Earlier in August, the company said it expects third-quarter earnings from continuing operations between $0.78 and $0.82 per share, including a negative impact of three cents from currency exchange rates.
On average, 24 analysts surveyed by Thomson Reuters expect the company to post earnings of $0.81 per share for the quarter, with estimates ranging between $0.79 and $0.84 per share. Analysts' estimates typically exclude special items. Sales for the quarter are estimated to be $99.88 billion, representing a 1.3% growth from last year.
In the same quarter a year ago, the Bentonville, Arkansas-based company, a Dow component, reported earnings of $0.77 per share, on sales of $98.64 billion.
For the 13-week period from August 1 through October 30, Walmart U.S. expects comparable store sales, a key measure of retailers' performance, to be between flat and up 2%, while Sam's Club expects comparable club sales to be flat, plus or minus 1%. Wal-Mart said early this year that it would no longer report monthly comparable store sales, and its 13-week comparable store sales results will be reported as part of quarterly earnings news.
While announcing the second quarter results, Wal-Mart revised its fiscal 2010 guidance, currently expecting earnings from continuing operations of $3.50 to $3.60 per share, compared to the prior forecast of $3.45 to $3.60 per share. For the year, analysts estimate earnings of $3.58 per share, with estimates ranging between $3.53 and $3.65 per share, while net sales are projected to be $409.95 billion, up 1.1% from last year. The company then pointed out that the outlook revision was based on its view of the economy and its continued focus on managing expenses and productivity.
Founded in 1945, Wal-Mart operates more than 8,000 retail units under 53 different banners in 15 countries, with its around 2.1 million full time employees. The company' Walmart U.S. segment operates through discount stores, supercenters, and neighborhood markets, as well as through walmart.com, while Sam's Club segment operates through warehouse membership clubs in the United States, as well as through samsclub.com. The International segment includes various formats of retail stores and restaurants, including combination discount and grocery stores, supercenters, Sam's Clubs, hypermarkets, cash-n-carry stores, department stores, and general merchandise stores.
In October, Walmart updated its global plans for store and club growth next year, and updated its projections for capital expenditures through the fiscal year ending on January 31, 2011. Tom Schoewe, executive vice president and chief financial officer then said, "Our plan for growth is clearly intended to increase shareholder value. In the U.S., we're building new stores and accelerating the pace of our remodels because they have been so successful at winning and retaining customers. We're stepping up growth in our International operations to take advantage of growing economies and opportunities in emerging markets, such as China and Brazil."
Total capital spending for the fiscal year 2010 is projected to be in a range of $12.5 billion to $13.1 billion, up from about $11.5 billion in fiscal year 2009. Total capital spending for the fiscal year 2011 is projected to be in a range of $13 billion to $15 billion.
Although the recession has had a negative impact on many retailers due to reduced customer spending, Wal-Mart has been able to weather the crisis by providing necessities to customers. As part of its efforts to lure budget-conscious shoppers, early this year, Wal-Mart refurbished its Great Value brand, assuring that these are affordable, high quality grocery and household consumable options comparable to national brands.
Last week, Wal-Mart announced price reductions on Thanksgiving dinner favorites, TVs and other popular electronics. The company slashed prices on flat screen TVs and selling 12-pound turkeys for less than $5 each, as shoppers evaluate the impact of tight budgets on holiday meal planning.
In its preceding second quarter, Wal-Mart reported a net income attributable to the company of $3.442 billion, slightly lower than prior year's $3.449 billion, while earnings per share rose to $0.88 from $0.87 last year, on lower share count. Wal-Mart noted that currency exchange rates negatively impacted earnings for the latest quarter by approximately $0.04 per share. The discount retailer's net sales for the quarter were $100.08 billion, down 1.4% from $101.55 billion last year. Excluding the negative impact of currency exchange rates, net sales for the quarter increased 2.7% to $104.28 billion.
In the second quarter, Wal-Mart's total U.S comparable store sales declined 1.2% without fuel and 1.9% with fuel. This compares with year-ago total U.S comparable store sales increases of 4.3% without fuel, and 4.9% with fuel. Walmart U.S. reported a 1.5% decline in comparable store sales, both excluding and including fuel, and Sam's Club comparable store sales growth for the quarter, excluding fuel, was 0.6%, and including fuel, sales dropped 4.3%.
Among peers, membership warehouses operator Costco Wholesale Corp. (COST) in early October reported a 6% decline in profit for the fourth quarter, hurt by softness in U.S. sales, higher employee benefit costs, and weaker foreign currencies. The Issaquah, Washington, D.C - based company's net income was $374 million or $0.85 per share, lower than prior year's net income of $398 million or $0.90 per share. Total revenue declined to $22.38 billion from $23.10 billion in the prior year quarter. Net sales were $21.89 billion, down 3% from $22.63 billion last year. Comparable sales declined 5%, comprising 6% drop in the U.S. sales, and 3% decline in the international region. Excluding the impact of gasoline deflation and foreign exchange, comparable sales for the quarter edged up 1%.
Discount-store retailer Target Corp. (TGT) is slated to release its third-quarter earnings on Tuesday, November 17, and analysts project earnings of $0.50 per share for the quarter, with revenues of $15.25 billion, compared to prior year's earnings of $0.49 per share and revenues of $15.11 billion. The company earlier noted that its sales remained challenging, however, it continues to experience favorable gross margin performance within categories and disciplined expense control in its retail segment, as well as modestly improving risk trends in its credit card segment. Target in early October announced the opening of 26 new stores, which would create more than 5,000 new jobs, and would help support local economies and communities around the country.
In an October 15 research note, Standpoint Research initiated its coverage on Wal-Mart with a 'Buy' rating.
WMT closed Wednesday's regular trading session at $52.97, up $0.66 or 1.26%, on a volume of 23.30 million shares. In the past 52 weeks, shares have been trading in a range of $46.25 to $59.23, with a 3-month average volume of 17.13 million shares.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.