Wal-Mart Stores Inc reported a flat quarterly profit, according to Reuters. In the current quarter, the big box company reported results that lined up with analysts’ predictions.
Last year at this time, Walmart benefited as consumers spent tax rebate stimulus money at its stores. This year, the company does not have a stimulus to help it generate sales, and yet it still has gained market share and new consumers, and its stock fell only 2%.
Analysts said Wal-Mart’s results were impressive when reviewed in the context of the current economic climate, and show it is outpacing competitors including Target Corp. and Costco Wholesale Corp., which have had profits fall.
“As long as Wal-Mart continues to have the price leadership that they have and the store experience continues to improve from where it was a few years ago, they’ll keep many of these gains,” Barclays Capital analyst Robert Drbul was reported as saying.
Wal-Mart said profit was flat at $3.02 billion for its fiscal first quarter ended April 30.