US Wal-Mart March sales miss estimates on lower inflation

09 April 2009 16:45  [Source: ICIS news]

HOUSTON (ICIS news)--Same-store sales for US retail giant Wal-Mart, a key end market for packaging materials and plastics, came in under expectations for March due partially to a decreased rate of inflation, the company said on Thursday.

Revenue from US stores open at least a year increased 1.4% in March 2009 from March 2008, well under the 3.2% average estimate compiled by Retail Metrics, a Massachusetts-based consulting firm.

Wal-Mart, the world’s largest retailer, is considered a bellwether for demand of some chemicals, since it is a large enough buyer to potentially influence pricing.

Wal-Mart executives, however, said the underperformance in March was only temporary due to delays in Easter purchases. Easter falls on 12 April this year, whereas it was on 23 March in 2008.

As a result, Wal-Mart says April sales should benefit and expects sales to come in at the high end of the company’s 1-3% projection.

“Based on the initial strength of our sales this week, we expect Easter to drive April sales performance,” said vice chairman Eduardo Castro-Wright.

But that expected growth would still be below the 5.1% increase the company had in February.

Wal-Mart traded at $50.30/share in early Thursday trading on the New York Stock Exchange, down 4.4% on the news.

Paul Hodges studies key indicators affecting the chemical sector in his Chemicals and the Economy blog
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By: Ben DuBose
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