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Wal-Mart sales surge on stimulus windfall
June sales beat expectations, aided by government payments and good weather, and lead the world's No. 1 retailer to raise its earnings forecast.
NEW YORK (CNNMoney.com) -- Wal-Mart Stores Inc. trounced analyst expectations Thursday with a 5.8% jump in June sales for stores open at least one year, attributing the increase to the government's economic stimulus payments.
As a result of the strong month, the world's No. 1 retailer raised its earnings guidance for the second quarter ending this month.
Analysts interviewed by Thomson Reuters had expected an increase of 3.8% for the five weeks ended July 4, not including gas sales.
Wal-Mart (WMT, Fortune 500) credited the increase to strong seasonal sales driven by favorable weather and "improved assortments," as well as a continued windfall from the government's economic stimulus program. The stimulus also drove Wal-Mart sales in May.
Wal-Mart said it now expects earnings for the fiscal second quarter ending this month to be between 82 and 84 cents per share.
Analysts surveyed by Thomson/First Call expect a 9% increase in sales, to $10.1 billion, and a 14% jump in earnings, to 82 cents per share.
Another major retailer, the warehouse club Costco Wholesale (COST, Fortune 500), beat analyst expectations with a 9% increase in same-store sales for June, compared to a projected increase of 8.5%. The figure included gasoline sales.
Wal-Mart is the largest corporation in America, according to the Fortune 500.
June sales beat expectations, aided by government payments and good weather, and lead the world's No. 1 retailer to raise its earnings forecast.
NEW YORK (CNNMoney.com) -- Wal-Mart Stores Inc. trounced analyst expectations Thursday with a 5.8% jump in June sales for stores open at least one year, attributing the increase to the government's economic stimulus payments.
As a result of the strong month, the world's No. 1 retailer raised its earnings guidance for the second quarter ending this month.
Analysts interviewed by Thomson Reuters had expected an increase of 3.8% for the five weeks ended July 4, not including gas sales.
Wal-Mart (WMT, Fortune 500) credited the increase to strong seasonal sales driven by favorable weather and "improved assortments," as well as a continued windfall from the government's economic stimulus program. The stimulus also drove Wal-Mart sales in May.
Wal-Mart said it now expects earnings for the fiscal second quarter ending this month to be between 82 and 84 cents per share.
Analysts surveyed by Thomson/First Call expect a 9% increase in sales, to $10.1 billion, and a 14% jump in earnings, to 82 cents per share.
Another major retailer, the warehouse club Costco Wholesale (COST, Fortune 500), beat analyst expectations with a 9% increase in same-store sales for June, compared to a projected increase of 8.5%. The figure included gasoline sales.
Wal-Mart is the largest corporation in America, according to the Fortune 500.
