Financial Reporting

Financials: Walmart, Target, T.J. Maxx, ShopNBC

Nov 17, 2011

New York--Same-store sales increased in the low single-digits for Walmart, Target and T.J. Maxx, with Walmart noting that its U.S. customers continue to be hampered by the slow economy. Here are highlights from the financials of the three chains, along with results from multi-media retailer ShopNBC.

Walmart
U.S. same-store sales increased 1 percent in the third quarter for Walmart, driven by an increase in the average ticket but a decline in traffic. Grocery, health and hardlines, which represent 75 percent of Walmart’s annual U.S. revenues, all had positive comps.

Same-store sales for Sam’s Club, excluding fuel, climbed 6 percent.

Net sales for the third quarter ended Oct. 31 were $109.5 billion, up 8 percent from $101.2 billion in the third quarter of last year. Walmart’s international sales were up 20 percent.

Walmart Stores Inc. President and CEO Mike Duke said while both Walmart U.S. and Sam’s Club exceeded comp-sales guidance, the economy continues to weigh on Walmart’s customers here. The retailer will continue to emphasize its low prices over the holiday season.

“Beyond everyday low price, Walmart U.S. has a number of additional programs in place for the fourth quarter, including the Christmas price guarantee, holiday layaway services and free online shipping,” he said. “Like the U.S., our international markets are ready for the upcoming holidays. We continue to see strong consumer demand in emerging markets, and our mission is relevant across all our formats around the world.”

Walmart ranks No. 1 on National Jeweler’s 2011 list of $100 Million Supersellers.

Target Stores
U.S. same-store sales increased 4 percent in the third quarter for Target Corp. Total sales were up 5 percent to $16.05 billion, compared to $15.23 billion a year ago.

Profit in the company’s retail segment was $931 million, up from $816 billion in the third quarter 2010. Margins sunk slightly, reflecting the impact of the company’s integrated growth strategy partially offset by rate improvements within categories.

“We’re very pleased with our third-quarter financial results, which reflect strong performance in our U.S. retail and U.S. credit card segments,” Target Chairman, President and CEO Gregg Steinhafel said. “We’re confident that we have the right strategy and team in place to drive continued strong performance this holiday season and well into the future.”

Target ranks No. 10 on National Jeweler’s 2011 list of $100 Million Supersellers.

T.J. Maxx
Off-price retailer The TJX Companies Inc. reported that its same-store sales increased 3 percent in the third quarter while net sales increased 5 percent to $5.79 billion. Profits rose from $652.1 million to $733.0 million.

Comp sales for Marmaxx, the division that includes T.J. Maxx and Marshalls, increased 4 percent. Total sales were $3.79 billion. Profits also were up, from $453.7 million to $501.6 million.

TJC Companies CEO Carol Meyrowitz said the company had an overall strong third quarter despite unseasonably warm weather hindering demand for fall apparel. She said U.S. sales picked up when the weather got cooler and the quarter ended strongly.

“Although it’s still early, November is off to a strong start. We are excited about our opportunities for the holiday selling season and the fourth quarter,” she said.

T.J. Maxx ranks No. 30 on National Jeweler’s 2011 list of $100 Million Supersellers.

ShopNBC
Also reporting its financials this week was ShopNBC. Sales rose 2 percent, from $132.3 million to $135.2 million for the multi-media retailer. Losses widened from $5.8 million to $6.3 million.

Internet sales as a percentage of total sales grew from 41 percent to 44 percent. Gross margin rose from 36 percent to 37 percent.

Keith Stewart, CEO of ShopNBC operator ValueVision Media Inc., said third quarter sales, which were a “disappointing setback,” were impacted by weak sales of consumers electronics and a 13 percent drop in watch sales, which off-set double-digit sales gains in jewelry, along with home, health and beauty, and fashion and accessories.

ShopNBC ranks No. 21 on National Jeweler’s 2011 list of $100 Million Supersellers.

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