Stocks to Watch: Wal-Mart Monthly Sales Up, Genzyme Misses Estimates

The nation's biggest retailer, Wal-Mart (WMT Quote), said same-store sales rose 10.3% last month. Total sales for the four-week period ended March 1 rose 15.6% to $17.2 billion from $14.9 billion in February last year. Same-store sales at Wal-Mart stores rose 11%, while Sam's Club posted a same-store sales increase of 6.9%. Analysts expected the company's same-store sales to rise 7.7%.

Earnings Reports & Outlooks

Genzyme General (GENZ Quote) reported higher fourth-quarter profits but lower earnings per share as a result of the biotech firm issuing new stock for acquisitions. Profits in the fourth quarter totaled $63.3 million, before amortization and items, compared with $58.3 million in the fourth quarter last year. But Genzyme reported fourth-quarter earnings of 29 cents a share, lower than last year's 31 cents and a penny shy of Wall Street's consensus estimates.

Miscellaneous News

Two drug companies and a medical device maker reported product setbacks Thursday morning. Sepracor (SEPR Quote) and Celgene (CELG Quote) both had drugs run into trouble with the Food and Drug Administration, while Guidant (GDT Quote) halted trials of an artery stent after a study found it wasn't effective.

Monthly Retail Sales

Abercrombie & Fitch (ANF Quote) said same-store sales fell 9% in February. Analysts were looking for a 13.3% decrease. Total sales climbed 13% to $89 million from $78.6 million.

Best Buy (BBY Quote) said fourth-quarter same-store sales rose 4.5% and repeated that its earnings would top previous expectations. The electronics retailer expects to earn $1.58 to $1.63 a share in the quarter ended March 2. The company had forecast profits of about $1.40 a share in January.

Big Lots (BLI Quote) said February total sales rose 19% to $272.6 million. Comparable-store sales for locations open two years at the beginning of the fiscal year increased 14% last month.

Claire's Stores (CLE Quote) said February same-store sales fell 3%. Total sales dropped 4% to $59 million from $61 million in February 2001.

Dillard's (DDS Quote) said February same-store sales fell 5%, but analysts were expecting only a 0.7% drop. Total sales fell to $599.1 million from $623.8 million a year ago.

Federated Department Stores (FD Quote) said same-store sales fell 2.8% in February, slightly worse than analysts were expecting. Total sales for the month were $1.05 billion, down from $1.08 billion in the same month last year.

Gap Stores (GPS Quote) confirmed that sales took another nosedive in February, falling 17% on a comparable-store basis and 8% overall. Gap said same-store sales fell 24% at Gap stores, 12% at Old Navy and 10% at Banana Republic. The retailer, who previewed the results earlier, also said it closed the sale of $1.2 billion of notes.

J.C. Penney (JCP Quote) said comparable department store sales jumped 12.5% in February, easily beating expectations of a 4.9% increase. Same-store sales at the company's Eckerd drugstore chain rose 6.7%, but catalog sales fell 28.7%. Total sales rose 3.3% for the month.

Kohl's (KSS Quote) said same-store sales rose 14.4% in February, beating estimates of a 5.4% increase. Total sales climbed 31.9% to $441.1 million. Earlier this week, the company announced plans to open 150 new stores during the next two years.

Limited (LTD Quote) reported a comparable-store sales increase of 2% for February, topping estimates of a 1% decline. Total sales were up 5% to $622.5 million. The company also increased its stock offer for the shares of Intimate Brands it doesn't already own. Limited owns about 84% of Intimate Brands (IBI Quote), which runs the Victoria's Secret chain. Separately, Intimate Brands said February same-store sales rose 1%, while total sales for the month climbed 3%. Analysts expected comparable sales to rise 0.3%.

May Department Stores (MAY Quote) reported that same-store sales fell 2.7% last month. Analysts were expecting a 2.2% decrease. Total sales climbed 1% to $942 million.

Men's Wearhouse (MW Quote) said total sales for February slipped to $84 million from $85.6 million a year ago. U.S. same-store sales fell 7.5%, while analysts were expecting a steeper 8.8% drop. "Even though our February sales were stronger than anticipated we remain cautious," the company said in a press release. "We will continue to focus our attention on our fundamental core competencies as we are confident these will sustain our growth."

Payless ShoeSource (PSS Quote) said February same-store sales rose 0.5%, and the company reaffirmed earnings guidance of $1.35 to $1.45 a share for the first quarter. The company expects higher same-store sales in March but negative comparable sales in April due to an early Easter.

Pier 1 (PIR Quote) said February same-store sales spiked 17.2%, and the company now expects to earn 50 cents or 51 cents a share in the fourth quarter. It had previously estimated earnings of 48 cents of 49 cents for the quarter, which ended March 2.

Saks (SKS Quote) said same-store sales declined 2.6% last month, while analysts were looking for a 1.2% decrease. Total sales fell 7.6% to $382.8 million. The company's February sales were hurt by severe winter weather in the Midwest during the last week of the month.

Same-store sales for Sears (S Quote) slipped 3.1% in February, but analysts were calling for a 1.6% decline. Total sales fell 1.2% to $1.9 billion.

Target's (TGT Quote) same-store sales rose 8.5% in February. Analysts were expecting comparable sales to rise 5.4%. Total sales for the month climbed 16.7% to $2.75 billion.

Talbots' (TLB Quote) February same-store sales dropped 17.7%, whereas estimates called for a decline of 15.6%. Total company sales for the month fell 10% to $84.1 million from $93.6 million.

TJX (TJX Quote), the owner of the T.J. Maxx and Marshalls chains, said February same-store sales rose 7%, beating estimates of a 5.2% increase. Total sales for the month rose 16% to $752 million.