Wesfarmers (WES) is an Australian conglomerate and is considered among the best of the blue chip stocks.
It has a diverse range of business, covering supermarkets, department stores, coal mining, insurance, chemicals, and industrial products.
In its recent 4Q10 sales update, WES reported a 5.5% on-year jump in sales to $7.45 billion.
On a quarterly basis, sales rose 4.2%, which was better than Woolworth’s (WOW) 3.5% increase in the same period.
Kmart sales gained 1.1%, which was a very good result considering WOW’s Big W reported a 9.3% slump in sales.
The only area of concern was Target, which saw a 4.4% fall in sales. Like WOW, WES cited the cycling of government stimulus and price deflation as the key factors which weighed on sales.
The stock market saw WES as the one of the key shares to buy on the day of the sales update, with its stock price rising by 3.2%.