Looks like Wal-Mart Stores' efforts to fix its merchandising faux pas may be paying off. The Associated Press reports that Deborah Weinswig, the influential retail analyst with Citi Investment Research, has reiterated her "buy" rating on the company's stock.
"The discounter reported last month its fifth consecutive quarter of declines in revenue at stores open at least a year, dragged down by its U.S. Walmart division," she wrote. "Business was, in part, stymied by merchandising problems, and the world's largest retailer has been restoring items it cut last year and to return to everyday low pricing after steep rollbacks failed to excite shoppers."
It's also returning to basics like socks and underwear as part of its new clothing strategy. While the core economic health of the Wal-Mart shopper hasn't improved, she expects that in the second half of the year, sales will benefit from that broader assortment, with Wal-Mart adding back anywhere from 5% to 25% more items.