October 6, 2005
Wal-Mart says hurricanes to hurt profit
CHICAGO (Reuters) - Wal-Mart Stores Inc. on Thursday said
Hurricanes Katrina and Rita would likely trim 1 cent per share
from its quarterly profit, but it still expects earnings in the
range of 55 to 59 cents per share.
Analysts, on average, expect Wal-Mart to earn 58 cents per
share in the fiscal third quarter that ends in October,
according to Reuters Estimates.
sales rose 3.8 percent at U.S. stores open at least a year,
helped by demand for cleaning supplies, basic apparel and
hardware as victims recovered from the hurricanes.
Wal-Mart, which had provided an initial sales figure on
Saturday, said total sales for the five weeks ended September
30 rose 9.7 percent to $28.24 billion.
The retailer, based in Bentonville, Arkansas, said its
Sam's Club warehouse stores benefited from sales of currently
high-priced gasoline at its filling stations. Same-store sales
at Sam's Club rose 9.8 percent but would have been up only 6.3
percent without gasoline sales.
Total U.S. same-store sales excluding gasoline would have
been up 3.2 percent, Wal-Mart said.
For October, Wal-Mart said it expects a 2 percent to 4
percent same-store sales increase. The retailer has vowed to
cut prices aggressively this holiday season to lure shoppers,
setting the stage for what analysts expect will be a fiercely
competitive shopping period.