Wal-Mart's 4th-Qtr Profit May Rise on Holiday Discounts, Ads

[shugah]

Wal-Mart's 4th-Qtr Profit May Rise on Holiday Discounts, Ads

Feb. 20 (Bloomberg) -- Wal-Mart Stores Inc., the world's largest retailer, may report fourth-quarter profit rose 10 percent as an advertising campaign drove sales of electronics, clothing and gift cards during the holidays.

Net income probably climbed to $3.5 billion, or 83 cents a share, according to Goldman Sachs & Co.'s Adrianne Shapira, a top-ranked analyst by StarMine Professional. Revenue likely rose 10 percent to $91.3 billion.

Wal-Mart boosted November comparable store sales 4.3 percent with price cuts on plasma televisions and DVD players and the earliest-ever holiday advertising campaign. The next month, Wal- Mart failed to maintain the momentum and sales rose 2.2 percent, the smallest December gain in five years.

~snip~

In the last fiscal year, Wal-Mart's comparable store sales rose 3.6 percent. Target, the No. 2 discount retailer, had a gain of 5.6 percent.

http://quote.bloomberg.com/apps/news?pid=10000103&sid=a1GFfQi1rMNM&refer=news_index

[marmar]

1. ... and more slave-labor factories in the Third World.

High Wal-Mart profits are costing somebody plenty.

[Danmel]

2. They teach their employees how to use Social Services

Its a civics lesson, don't you see? How to get food stamps, how to apply for Section 8 housing and reduced price lunches, how to get Medicaid....Their low wages are off set by their civics lessons!

[robcon]

3. You have to read the article, though

It says price cuts led to increased profits. They act as if deep price cuts for Black Friday were some "new" technique for discount retailers. It's getting people to buy things at full price that makes money for retailers. If Wal-Mart couldn't sustain the shopper traffic throughout the season, that's a bad sign for their profitability.

The article states :"The next month, Wal- Mart failed to maintain the momentum and sales rose 2.2 percent, the smallest December gain in five years.

``There was certainly shopper excitement early on, but it wasn't sustained,'' said Dan Popowics, an analyst with Cincinnati-based Fifth Third Asset Management with $22 billion in assets including Wal-Mart shares. ``Clearly their Black Friday strategy worked. But their holiday was modestly disappointing as they went on.''

[leesa]

4. It's nearly March and they are STILL trying to put a positive spin on the

4th qtr.