Wal-Mart Stores Inc. Monday gave a chillier outlook for December sales as more people delayed holiday shopping or bought gift cards that do not immediately count toward revenue.
The world's biggest company said it now expects sales at stores open at least a year to reach only the lower end of its forecast for 3 percent to 5 percent growth this month.
Bentonville, Arkansas-based Wal-Mart said the number of shoppers at its stores declined last week, which it attributed to a trend toward later holiday sales.
Wal-Mart shares were down $1.16, or 2.2 percent, at $51.34 in afternoon trading on the New York Stock Exchange while most other big retailers were enjoying a strong day.
U.S. consumers, accustomed to last-minute bargains, have been waiting until the last minute to finish holiday shopping. The day after Thanksgiving used to be the biggest shopping day of the year, but in recent years the Saturday before Christmas has earned that designation.
Analysts will be looking closely for any indication of weakness in rival Target Corp.'s weekly sales update, set for release after the U.S. stock market closes on Monday. The Minneapolis company has said it expects December same-store sales growth of 5 percent to 7 percent at its discount stores.
Target, which carries more trendy merchandise than Wal-Mart does, has also recorded stronger sales growth in recent months, supporting ideas that improving consumer confidence benefits higher-end stores more than Wal-Mart.
December is the biggest shopping month of the year. Last year, Wal-Mart slashed its December same-store sales forecast because of weak demand and recorded only a 2.3 percent gain.
Many analysts expect overall holiday sales to show a 5 percent to 7 percent increase over last year as a strengthening economy lifts consumer sentiment and spending.
News of former Iraqi President Saddam Hussein's capture over the weekend was expected to give a further lift to consumer attitudes, and contributed to strong stock market gains on Monday.
But Wal-Mart has tried repeatedly to dampen expectations for a blockbuster holiday season, noting that its customers were still buying the lowest-priced items available and holding off on nonessential purchases.
On a recorded message updating sales through Friday, Wal-Mart said the best-selling categories last week included food, pharmaceuticals, toys, infants' merchandise, girls' clothing, and paint.
The company said people were buying "closer to need," and gift cards were popular, continuing a trend seen in recent years. Retailers do not record revenues from gift cards until they are redeemed.
Wal-Mart made no mention of weekend snow storms that hit parts of the U.S. Northeast, but said the Southeast and Mid-Atlantic regions were the strongest.