Wal-Mart Posts Solid Quarterly Results

If there is one company that has benefited from the economic downturn, it is the budget retail giant Wal-Mart, luring in more and more bargain hunting customers as Americans struggle to stretch their paychecks. Despite a noticeable slowdown in consumer spending across the board, Wal-Mart has managed to post an 88 cent-per-share profit, edging out their performance last year and topping analyst expectations.

Wal-Mart’s shares are up 2.5 percent in late-afternoon trading Thursday after having fallen 19 percent since September 2008. Analysts have credited the oft-maligned retail giant with improving its stores dramatically, cutting inventory and making its locations more desirable places for shoppers to visit.

Despite Wal-Mart’s relatively green pastures, the U.S. retail sector is still struggling, with sales having dropped 0.1 percent in July, according to Commerce Department data. Analysts had expected a small gain, deceived by a 0.7 percent increase in sales in June, but rising unemployment and halted consumer spending has all but crippled many retailers, many hoping for a solid back-to-school season to recoup their losses.

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