Oct 1, 2002 2 min read

BENTONVILLE, Ark. (AP) – Wal-Mart Stores Inc. reduced its sales forecast for September, as the world’s largest retailer struggles with disappointing results at both the discount chain and its Sam’s Club warehouse division. It shares sank. During a pre-recorded call, the company said Monday it now expects sales at stores open at least a year, known as same-store sales, to be up by between 3 percent to 4 percent. Last week, it said that September sales would be up at the low end of an original forecast of a 4 percent to 6 percent gain.

Same-store sales are considered the best indicator of a retailer’s health.

But Wal-Mart reaffirmed its earnings projection of 40 cents to 41 cents per share for the quarter, and $1.76 to $1.78 for the year. Analysts surveyed by Thomson First Call were expecting earnings of 40 cents for the August-October quarter and $1.79 a share for the year.

The company said it had been too optimistic about how much sales would grow one year after the gloom that followed last year’s terrorist attacks. A year ago, taxpayers were receiving tax rebate checks that were part of President Bush’s tax cut package. Wal-Mart said the effects of those checks last year will diminish this year’s October numbers

Wal-Mart’s September period includes the five weeks from Aug. 31 through Friday. The company, along with other major retailers, is expected to report September sales on October 10. The company’s stock fell 3.9 percent, or $2 a share, to close Monday at $49.24 on the New York Stock Exchange.