Wal-Mart International Division Sales Dive 10.4 Percent During Holidays
U.S. stores see sales growth, Sam's Club reported sales down 2 percent in struggling economy
Last updated Thursday, January 8, 2009 5:20 PM CST in Business
By Lana F. Flowers
THE MORNING NEWS
The Christmas shopping season appeared dismal for Wal-Mart Stores Inc.'s international division.
The company reported Thursday morning $10.7 billion in sales for the five weeks ended Jan. 2 in its international division, a 10.4 percent decrease from the period ended Jan. 4, 2008.
"Our customers around the world continue to feel pressure from the current global economy, leading to sales for Wal-Mart International that were below expectations," said Mike Duke, vice chairman of Bentonville-based Wal-Mart Stores.
He will take over as the company's president and CEO on Feb. 1 after Lee Scott retires.
The company's U.S. stores reported $30.9 billion in sales ended Jan. 2, up 4.3 percent from the $29.69 billion in sales for the period ended Jan. 4, 2008.
The Sam's Club division had sales of $4.83 billion, down 2.1 percent from $4.94 billion in sales for the same period a year ago.
"Relative to our plan, sales came very late in the reporting period," said Doug McMillon, president and CEO of Sam's Club. He will take the reigns of Wal-Mart's international division Feb. 1.
"Our (Sam's) members were clearly cautious with their discretionary spending. Our small business members in particular continue to face more pressure from today's economy and also are more selective in their purchases," McMillon said in a company news release.
The Thursday morning stock price reflected Wall Street's sentiment about Wal-Mart's dismal sales in the international division, widely touted by analysts as a market with huge growth potential.
Shares of Wal-Mart (NYSE: WMT) traded at $51.06 per share as of 11:55 a.m. CST, down $4.48, or 8.07 percent.
One of Wal-Mart's main competitors, Minneapolis-based Target Corp., reported flat sales of $9.28 billion, up 0.2 percent from the December period a year ago.
"During the month we reduced prices to gain market share and to end the year with very clean inventories," said Gregg Steinhafel, Target president and CEO.
Shares of Target (NYSE: TGT) traded at $37.50 per share as of 11:56 a.m. Thursday, up 49 cents.
Little Rock-based Dillard's Department Stores Inc. reported its sales fell 6 percent to $6.36 billion, hurt by lower sales of children's clothes and furniture.
Shares of Dillard's (NYSE: DDS) traded at $4.51 per share as of 11:56 a.m. Thursday, down 14 cents, or 3.01 percent.
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