Wal-Mart Guidance Intact

Wal-Mart(WMT Quote - Cramer on WMT - Stock Picks) reaffirmed its prior August same-store sales guidance Monday, as sales in the just-completed week were helped by shoppers preparing for hurricanes.

Total U.S. same-store sales should be up 2% to 4% for the four weeks ended Aug. 27. That would compare to a 6.9% increase in the same period a year ago.

Wal-Mart, which posted a jump in second-quarter earnings last week, noted that the gain in same-store sales will be smaller than last year because of the absence of government stimulus. The company noted that the last set of child care tax credit checks were sent out in the middle of August 2003.

August sales will also be pressured by the shift of the Labor Day holiday by one week this year and the reduced amount of clearance merchandise.

The strongest categories in the week ended Aug. 13 were food, pet supplies and household paper goods, whose dollar volume is boosted by inflation. The East and the Southeast were the strongest regions in the week.

Sales were driven by customers preparing for Hurricanes Bonnie and Charley, which hit Florida and parts of the East Coast this past weekend. The company saw increased sales of duct tape, headlights, matches, playing cards, toaster pastries, tuna and water. Wal-Mart noted that sales were similarly strong last year due to the blackout that affected much of the Northeast.

Meanwhile, back-to-school selling strength continued to be seen in uniforms and athletic shoes and new fall fashions, including screened tee-shirts and skirts and dresses for girls.

Both traffic and average ticket were positive for the week, Wal-Mart said, with average purchases making up three-quarters of the same-store sales increase.

Sales for the four weeks ended Aug. 27 will be released on Sept. 2.

Shares of Bentonville, Ark.-based Wal-Mart were moving up 17 cents, or 0.3%, at $53.57 in Monday premarket trading.