Walmart's revenue gain sign of changing times?

NEW YORK - Walmart Stores Inc.'s third-quarter profit slipped 2.9 percent, missing Wall Street expectations, but the world's largest retailer reported its first quarterly revenue gain in its U.S. business in more than two years.

That Walmart has reversed nine consecutive quarters of revenue declines in its branded stores in the U.S. is a positive sign in the midst of otherwise less-than-inspiring economic news. Walmart's core low-income shoppers have been particularly hard hit by joblessness and the other challenges of the weak economy. But the latest quarter indicates that they may be more willing to spend.

Walmart said Tuesday it earned 97 cents per share, or $3.33 billion in the three-month period ended Oct. 31. That compares with 95 cents per share, or $3.43 billion, in the year-ago period. The year-ago results included a tax benefit of a nickel.

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Net revenue rose 8.2 percent to $109.5 billion. Revenue at stores open at least a year, an indicator of a retailer's health, rose 1.3 percent, beating estimates for a 0.3 percent increase. However, analysts had expected 98 cents per share on $108.86 billion, according to Factset.

Total sales at Walmart's U.S. division rose 2.7 percent, while sales at Sam's Club were up 9.5 percent. According to Thomson Reuters, analysts expected the company's total U.S. business to rise 0.7 percent, including a 4.9 percent increase at its Sam's Club stores.

Walmart's international business, which produces 26 percent of its revenue, had a 20.3 percent increase.

Walmart has been working to boost sales in its U.S. business, which have been hurt by the economic downturn and missteps the retailer made in its pricing and selection. The business is particularly important to Walmart because it accounts for 62 percent of its total revenue. The latest results show Walmart's strategy may be working.

The company has been restoring thousands of products it culled during an overzealous bid to de-clutter its stores. Walmart, which late last year started offering low prices only on select items, also has been working to reclaim its reputation as the low-price leader by going back to the "everyday" low pricing strategy that was made popular by its founder, Sam Walton.

Walmart hopes that its campaign to turn around its business will continue to work during the holiday shopping season. Walmart is pounding its low-price message hard by guaranteeing customers will get the lowest price no matter when they buy during the season. With its new Christmas Price Guarantee program, shoppers who buy something at its store between Nov. 1 and Dec. 25, but then find the identical product elsewhere for less, can get a gift card in the amount of the difference.

The company also is starting its Black Friday specials at 10 p.m. on Thanksgiving, two hours earlier than many of its competitors like Kohl's Corp., Target Corp. and Macy's. The sales will be followed by the traditional midnight electronics deals, then the 8 a.m. sales for the family that will last the whole weekend.

Walmart said it expects fourth-quarter earnings results to be in the range of $1.42 per share to $1.48 per share. Analysts had expected $1.45 per share. For the full year, it expects a range of $4.45 per share to $4.51 per share. Analysts had expected $4.50 per share, according to Factset.