Recession's grim reaper can't catch Wal-Mart - Top Stocks Blog - MSN Money
 
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Recession's grim reaper can't catch Wal-Mart

Posted Nov 13 2008, 06:44 AM by Douglas McIntyre
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The home of "everyday low prices" took a bit of a hit today when it put out its earnings. It can not longer be called "recession proof", but it is still damn close.

Wal-Mart made a very modest adjustment to its guidance. The world's largest retailer said "For the full year, ending January 31, we have tightened and modestly reduced our guidance and now forecast diluted earnings per share from continuing operations to be within a range of $3.42 to $3.46." Wall St. expected that number to be $3.49. Not much of a miss. Not in this economic environment.

What won't end up in the headlines is how well Wal-Mart did in the last quarter. Net sales for the third quarter of fiscal year 2009 were $97.6 billion, an increase of 7.5% from $90.8 billion in the third quarter last year. The is an astonishingly good number for such a large company to post in an economic downturn.

Income from continuing operations for the third quarter was $3.033 billion, an increase of 6.6% from $2.846 billion in the third quarter last year. Diluted earnings per share from continuing operations for the third quarter of fiscal year 2009 increased to $0.77 from the previous year's third quarter result of $0.70 per share.

A look at numbers from large retailers including Best Buy, Gap, Macy's who hit a wall last quarter show just how good the Wal-Mart number are. While WMT international revenue did well, up 11.2% to $61.1 billion, it was the US which posted the more surprising numbers with an over 6% improvement at Wal-Mart and a nearly 8% improvement at Sam's Club.

Because Wal-Mart is huge, its exposure to the economy should be as well. That it can market itself as the only reasonable place to shop in a recession and get consumers to buy into that is amazing.

Top Stocks blogger Douglas A. McIntyre is an editor at 24/7 Wall St.

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Comments

 

Hi,  what is better to have a job as a common clerk and make $45,000.00 from Walmart, or make $70,000.00 a year with the union and loss my job, reality check very few people are in unions now, that is a thing of the past, a wise man saves for his own retirement , so when my union job goes under , I can still retire , I live in the real world, wake up and smell the coffee, then get to work, A Working  Man !!!!!

Any workplace that treats their employees fairly does not need a union. A union can be a good thing in certain circumstances

Why do I need a union.  I have worked at Wal-Mart for 11 and 1/2 years.  Every year I have gotten at least one raise, plus a bonus.  We were just informed this week that we will be getting our THIRD bonus of the year in a few weeks.  I have a profit sharing plan and a 401 K, my health insurance payment has gone down three years in a row.  And, Wal-Mart adds 15% to my employee stock purchase plan every paycheck.  Don't know were else I could get a guaranteed 15% on my money these last few years.  I find that posters who bash Wal-Mart and their "low paying jobs", have never worked there.  I can go as far as my talent and inclination take me.  No glass ceilings here.

If Obama is as smart as he thinks,he should pay attention to other matters,rather

than let unions destroy a good thing ,such as Walmart.Look what happened to G.M.,Converse Shoes,and countless companies that are in trouble because of unions.Afterall, who are the gangsters behind or at the helm of the unions. They live high on the hog and on members contributions.

They are the worlds biggest cause of problems in the workplace.Workers can speak for them selves,if they have problems,they dont need  to pay for someone to do their talking.Walmart is a good company for employees and customers alike.

Obama and his gang should mind the corruption and punish the people within their ranks,rather then comuflage the problems of the politicians,with good companies like WALMART.Long Live !!!!!!!!!!!!! WALMART

I sure would like to know what Wal-mart Pays 45000.00 a year.  Here in the mid west they pay 8.00 a hour do the math  that's less than 20000 ayear

Poor ,not middle class having hard time's for years. Wal mart no's this thay care !But people no mater what class should start living within thier mean's We've all acted like there's no end to the gravy train.Rich people, take care of your fellow man ,some time you may need them. It will all come back to slap you in the face !

Bill Butler:READ MY WORDS!!

Walmart gets away with Murder making tens of Billions off cheap junk from China

Who gets the shaft THE WORKERS or US Taxpayers or CONSUMERS all one in the same.

A manager had the Audacity to tell a worker we cant give you a 25cent raise after 6 months because Walmart isn't making money.

If workers can't make a decent wage who will buy the crap Walmart, Circutcity, Boscovs, Dell, Microsoft, GM Ford ETC...sell.

When management pays workers less and exports jobs & imports visa workers  at half pay like insurance, pharmacudical Corporations & the rest are doing It's no wonder US workers aren't buying their products. How about some NAFTA Laws to encourage JOBS IN AMERICA & PRODUCTS MADE IN AMERICA!! Can you buy a new car when green energy is plentiful yet car companies make cars with gas tank needles that we pour money in & week after week it goes out the tailpipe. BRING ON the GREEN ENERGY cars without the fuel tanks with refillable needles. Energy should be free stop making gas DINOSAUR cars of the 1950's. NO BAILOUT FOR ANY COMPANY THAT MAKES A Car with a fuel tank that has a needle from E TO Fill when FREE SOURCES of energy SUN, regenerating ELECTrIC, HYDROGEN abound.

REPLACE CEO"S THAT FAILED TO HAVE Backup plans for GREEN ENERGY CARS> THESE CEOS travel the same rat maze week after paycheck week. NO BAILOUT FOR THESE LOSERS ONLY the unemployment line!!

AMERICA WAKE UP! USE LESS GAS now more than ever before & stop buying the crap you bought OVER & OVER again.

Boycott Walmart their prices are low because they are selling you cheap crap which has been deboned by manufacturers to meet Walmarts criteria for low prices. You get what you pay for.

Hey when Sam Walton started Wal-Mart he was a good man and if you remember all wal-marts slogans  were MADE IN THE USA. Well that is a thing of the past Since he passed on and his kids took over it turned into a junk store because of their greed  Nothing in there but imported junk.  WAKE UP PEOPLE CREATE JOBS BY BUYING AMERICAN.  not junk made in sweat shops in China

i WORK FOR WALMART. I DON'T NEED A UNION TO SPEAK FOR ME. i CAN NOT AFFORD TO PAY UNION DUES. I ENJOY MY JOB AND THE CUSTOMERS THAT COME INTO THE STORE.NO UNION PLEASE....

the problem with wally world( wal-mart) is quantity not quality. they sell large amounts of stuff to the masses so sure,everyone gets a bad apple occasionally. the aisles are always packed full of extra crap thats in the way and makes it impossible for carts to get down them. it always seems nothing is where it's suppose to be and they only have 4 checkouts out 40 that are ever open. i heard most of the jobs are part time, so why don't they cut part time jobs in half and make them full time. and if unions weasled their way into wally world, our grocery bills would double.

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