Wal-Mart Give Retailers Upbeat '05 Start

[Sinistrous]

http://www.reuters.com/newsArticle.jhtml;jsessionid=CIVFFETQJFNMYCRBAEOCFEY?type=businessNews&storyID=7223321

Mon Jan 3, 2005 10:19 AM ET

By Belinda Goldsmith

NEW YORK (Reuters) - Wal-Mart Stores Inc. (WMT.N: Quote, Profile, Research) , the world's biggest retailer, on Monday said December sales would be at the top end of its outlook on better-than-expected post-Christmas spending, sending its shares up 2 percent.

Remember the gloom and doom forecasts of last November that pushed the value of Wal-Mart shares down? I bet the insiders at W/M made a killing on this maneuver.

[BurgherHoldtheLies]

1. Seems like Walmart lowered expectations in order to appear rosy?

After the dismal sales after Thanksgiving, retailers lowered expectations so that the final numbers would look better.



Wal-Mart had dampened expectations for the crucial Thanksgiving-to-Christmas season that makes up about 23 percent of annual retail sales with its original forecast for sales growth of between 1 percent and 3 percent, its lowest monthly view in 19 months.
This reaffirmed analysts' views for slower sales growth this holiday compared with last year. The National Retail Federation had expected sales to rise 4.5 percent to $220 billion, compared with growth of 5.1 percent a year earlier.

Discount stores particularly were hit by higher oil prices, which have driven up heating bills and gasoline costs, taking a chunk out of lower-income earners' budgets.

Wal-Mart's weak forecast also came after a disappointing November when same-store sales only rose 0.7 percent.

[Sinistrous]

2. No. My take is they lowered expectations to depress their stock,

so the insiders could buy at artificially low prices, and then profit nicely when the real sales showed a healthy growth and the stock price rose (which is exactly what happened -- article mentions a 2% rise in stock value.)

Nice of you to give us the repub Kool Ade, though.

[BurgherHoldtheLies]

3. I'm not a business person and I hate the zealot brand koolaid.

Sorry, I've always posted respectfully on DU and I regret that you thought my post was somehow a repub line. I thought I was making the point that Walmart was lying to make their numbers look better...

[Lefty48197]

4. that reminds me: I have to return all the Walmart stuff I bought before

Christmas.