Wal-Mart Sales Rise, But Not Enough

Wal-Mart Stores Inc. (WMT) said sales at stores open for at least a year rose 1.4% in March and forecast quarterly earnings to be at the high end of its prior guidance, but the news failed to cheer investors who expected a better performance from the world’s largest retailer.

For the first quarter, ending May 1, Wal-Mart guided to earnings in the range of 72 cents to 77 cents per share. While the consensus estimate was pegged at 76 cents a share, the most accurate estimate was more bullish by a penny.

Wal-Mart’s Vice Chairman Eduardo Castro-Wright said, “Based on the initial strength of our sales this week, we expect Easter to drive April sales performance.”

As the recession deepened, consumers continued their hunt for bargains at the company’s namesake stores but on an average spent less during their visits. Wal-Mart also said comparable-store sales in March were hurt on account of a shift in the Easter holiday and strength of the dollar.

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