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Thursday, November 02, 2006

Wal-Mart Strikes Out (WMT)

Wal-Mart now says that same store sales may be up "zero" in November.

Very grim.

Wal-Mart has indicated that it is promoting new products and dropping prices. It does not seem that the company thinks it will work.

The company indicated that hurricanes from last year may have helped store sales for that period. Customers bought goods to restock their homes.

Fuzzy math.

The figures are a further indication that Wal-Mart may simply have too many stores in the US. The company may have to look at shuttering underperforming stores to both cut its cost base and improve same-store growth.

Whatever the solution, Wal-Mart may no longer be a growth stock.

Douglas A. McIntyre can be reached at He does not own securities in companies that he writes about.

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