Finance & Capital Management

There was a lot of negativity in the air this week regarding Walmart. Jefferies & Co. analyst Dan Binder downgraded the company on Tuesday and proceeded to appear on CNBC where he expressed concerns about company specific issues at Walmart regarding turnaround initiatives not gaining traction in the time frame he had hoped for.

PURCHASE, N.Y. — MasterCard Advisors SpendingPulse revealed that online retail sales rose 14% over the year-ago period, marking the 24th straight month of year-over-year growth, as well as the ninth consecutive month of double-digit growth, with improvement in every subcategory except for electronics.

Operating internationally is full of pitfalls and political peculiarity, as Walmart has again discovered in South Africa where various government officials are attempting to wring additional concessions from the company related to its acquisition of Massmart.

SALISBURY, N.C. — New stores, higher retail inflation and positive calendar impact drove sales up for Delhaize America, the U.S. sector of the Delhaize Group, during the second quarter ended June 30.

The division, which operates such banners as Food Lion, Hannaford and Bottom Dollar Food, reported that revenues rose 4.3% to $4.9 billion, while comparable-store sales increased 1.6%. Operating profit, however, dropped 2.7% to $205 million.

Costco and BJ’s Wholesale Club continue to produce solid sales growth aided by high gas prices, shoppers desire to save money and their ability to pass through food price inflations.

INDIANAPOLIS — Specialty electronics retailer Hhgregg reported a net loss of $0.8 million for the first quarter ended June 30, or a loss of 2 cents per diluted share, compared with net income of $2.7 million, or 7 cents per diluted share, for the comparable prior-year period. 

NORTHFIELD, Ill. — Kraft Foods is planning to create two independent public companies, which will include a global snacks business and a North American grocery business.

The company expects to create these companies — the high-growth global snacks business, which carries an estimated revenue of approximately $32 billion and the high-margin North American grocery business, which touts an estimated revenue of approximately $16 billion — through a tax-free spinoff of the North American grocery business to Kraft Foods shareholders.

MINNEAPOLIS — July same-store sales at Target increase 4.1% on top of a prior year gain of 2%, with increase transaction size the primary driver of an increase toward the upward end of the company’s guidance.

CINCINNATI, MENOMONEE FALLS, Wis., and PLANO, Texas — Macy’s emerged as the big winner among department-store retailers this July, reporting sales growth that exceeded expectations. JCPenney also faired well for July, while Kohl’s sales disappointed. 

Macy’s Inc. reported total sales of $1.6 billion for the four weeks ended July 30, an increase of 5% compared with total sales of $1.525 billion in the four weeks ended July 31, 2010. On a same-store basis, Macy’s Inc. sales were up 5% in July.

WOONSOCKET, R.I. — CVS Caremark posted second-quarter results that were at the high end of its guidance and narrowed its 2011 outlook on continued confidence. But it was the PBM business — and the potential merger of PBM rivals Express Scripts and Medco Health Solutions — that was top of mind for many industry observers, and was a topic that CVS Caremark president and CEO Larry Merlo hit head on at the start of Thursday morning’s conference call.