Wal-Mart's broke customers are even broker, apparently

[marmar]

(Bloomberg) Wal-Mart Stores Inc. (WMT), the world’s largest retailer, fell in New York trading after reporting third-quarter profit that trailed analysts’ estimates.

Wal-Mart slid 2.2 percent to $57.61 at 7:47 a.m. The shares had risen 9.2 percent this year before today, compared with a 0.5 percent decline for the Standard & Poor’s 500 Index.

Net income for the quarter ended Oct. 31 declined 2.9 percent to $3.34 billion from $3.44 billion a year earlier, the Bentonville, Arkansas-based company said today in a statement. Profit excluding some items was 97 cents a share. Analysts projected 98 cents, on average.

Chief Executive Officer Mike Duke has worked to reverse a decline in U.S. sales by restocking more 10,000 products such as fishing rods and car tires that had been removed two years ago. The company’s gross profit margin, or the percentage of net sales remaining after subtracting the cost of goods sold, shrank to 24.6 percent, narrower than the 24.8 percent estimate of Colin McGranahan, an analyst at Sanford C. Bernstein. ...........(more)

The complete piece is at: http://www.bloomberg.com/news/2011-11-15/wal-mart-falls-after-profit-trails-estimates.html

[Fumesucker]

1. Walmart shoppers are going to Dollar stores, thrift stores, flea markets, yard sales, Craigslist.n/t

[hlthe2b]

4. Yes.. they've got to go somewhere to replace all the broken, cheap crap....

they had to buy from Walmart and which probably lasted about 5 minute.... Such exploitation does eventually catch up to you, WALMART....

[leftyohiolib]

11. maybe it was the lead or ruffies or radio activity in their products.

it's all chinese poison

[JanMichael]

2. or could it be that the number of people that just refuse to go there

is growing to the point where it's becoming noticeable on the sales charts?

I sure hope that has something to do with it.

[Frustratedlady]

5. I resemble that remark.

I step in a WalMart once in a blue moon and I can't remember one of those in a long time. I never liked the way they treated their employees. I hope they've changed their methods, but if they have, it would be too little, too late for me.

I witnessed employees being humiliated before the customers and I never want to see something like that, again!

[Obamanaut]

15. My guess is that the number of people who SAY they never go inside WalMart

is much, much larger than the number who actually don't go there.

[DainBramaged]

3. 24.6 percent was their gross profit margin

Think about that suckers when you shop there, and think about what they pay their workers....

[On the Road]

12. Wal-Mart's Gross Margin May be 24.6%

but their most recent net margin is 3.5% ($3.8B net earnings on $109B of revenue for 3Q). Like most retailers, the margins are small and success depends on high turnover.

[DainBramaged]

13. Think about that gross margin for a minute

I don't give two shits about their net profit. TWENTY FIVE CENTS OF EVERY DOLLAR SPENT AT WAL-MART IS PROFIT Fuck them and their net. Most companies work on 2% or less. They are pigs at the trough.

[On the Road]

14. That Would be True

If sales and administrative costs, interest and taxes were free. Those items were in the neighorhood of $20B in the last three months.

If you don't believe me, look at their http://money.cnn.com/quote/financials/financials.html?symb=WMT&dataSet=IS&period=Q">income statement.

And I have no idea where you came up with the 2% gross margin. Do some research before you get outraged.

[DainBramaged]

16. Net, Jesus quit defending these fucks. You think I meant gross?

I SOLD TO THEM in the 90's as a vendor, something you didn't do. I KNOW what I speak of.

[Donnachaidh]

6. walmart prices have been going up, selection going down

I'm not sure that it is people being *broker*, from what I've seen in my area people are looking for alternatives - because they don't want to buy crap from China. And that is the majority of the stuff walmart sells.

:shrug:

[durablend]

8. Yup..."Always Low Prices" my ass!

Plenty of items there you can get cheaper elsewhere unless you're out in the sticks somewhere with no other option (my condolences in that case)

[formercia]

7. Local Wally World is selling guns again

after a few years hiatus. Prices are no better than elsewhere. Ammunition selection is worthless.

[sinkingfeeling]

9. Or maybe people are getting smarter about how and where they spend their money.

[Citizen Worker]

10. The only time I've been near a Wal-Mart store was to participate in a picket. I have never been

inside a Wal-Mart and I will not patronize their stores.