Wal-Mart 2008 outlook cautious and down we go

Wal-Mart Stores, Inc. (NYSE:WMT) the world's largest retailer said the U.S. economy is playing a critical factor in 2008 and the stock is down 2% and falling. Stocks are taking a hit today and down the ship goes.

Wal-Mart Stores 's low prices are driving sales with customers flocking to buy basics like groceries, shampoo, cleaning supplies, and pharmacy items. But once customers buy what they need they are also purchasing other items as well. Surprisingly one area of strength was consumer electronics.

Low prices and improved customer services were the primary drivers of sales growth, the company said, despite the “economic headwinds” caused by energy and food inflation. But not all was well in Bentonville, Arkansas. “There are still uncertainties during the rest of the year,” Scott said. “The economy is playing a critical factor in 2008.” Even so, he remarked, Wal-Mart is well positioned to benefit from the downturn in the economy and a rebound as well.

Via Forbes.com -- Wal-Mart reported earnings jumped 7.1%, to $3.0 billion, or 76 cents per share, in the quarter ended April 30, up from $2.8 billion, or 68 cents per share, in the prior year, beating analysts’ forecast of 75 cents a share.

The company said overall revenue in its first quarter jumped 10.3%, to $95.3 billion, up from $86.4 billion in the prior year. Net sales excluding membership fees rose to $94.1 billion, from $85.4 billion a year ago. Analysts had projected revenue of $93.5 billion for the quarter.

Excluding fuel, same-store sales for the first quarter were up 2.9% at Wal-Mart's domestic properties, rising 2.7% in the Wal-Mart Stores division and 3.6% at Sam's Clubs, the warehouse division.

WalMart Stores Inc.

56.76  -1.26

Masters, get your evil on, Wal-Mart shares are going to be just fine and should the stock fall more, it's an all out buy.