Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

4-Traders Homepage  >  Equities  >  Nyse  >  Wal-Mart Stores, Inc.    WMT

Delayed Quote. Delayed  - 08/29 10:00:18 pm
71.4 USD   +0.37%
08/27 WAL MART STORES : Walmart goes online
08/27 WAL MART STORES : Mart takes Texas to court to crack liquor-sales ma..
08/26 WAL MART STORES : Brand New Wake Forest Sam’s Club to Open Thu..
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector news 

Wal-Mart Deepens Gloom Around Retailers With Weak Sales Report

share with twitter share with LinkedIn share with facebook
share via e-mail
0
08/15/2013 | 03:53pm CEST
   By Shelly Banjo 
 

Wal-Mart Stores Inc. deepened the gloom around retailers' results on Thursday, reporting weak sales that it said will continue through the year, as its low-income customer base remains cautious.

The retailing giant said its fiscal second-quarter earnings rose 1.3%, but sales grew slower than expected. The retailer said consumers in both mature and emerging markets curbed spending and traded down to lower-priced products. Wal-Mart cut its forecast for profits and sales for the year.

The gloomy read on U.S. consumers comes a day after department store chain Macy's posted disappointing results and lower store traffic, heightening concerns that the key back to school shopping season is off to a weak start. Also on Thursday, rival Kohl's Corp. added to those concerns when it said its fiscal second-quarter profit fell 3.5% and lowered its earning forecast for the full year.

Wal-Mart, the world's largest retailer, said profit ticked up to $4.07 billion in the quarter ended July 31 from $4.02 billion a year earlier, as revenue rose 2.3% to $116.95 billion.

Sales at its U.S. stores open at least a year fell 0.3%, after Wal-Mart had previously said they would be no worse than flat. It was the fifth consecutive decline for the key retail metric. Wal-Mart expects flat comparable store sales or the U.S. in the current quarter as well.

Chief Financial Officer Charles Holley Jr. said an assumption of cautious consumer spending will color the company's expectations for the rest of the year. Shoppers are reluctant to spend on discretionary items, he said, and Wal-Mart will bring back its layaway program for the holidays.

Wal-Mart lowered its full-year earnings estimate by 10 cents a share to a range of $5.10 to $5.30 a share. It now expects growth in net sales of just 2% to 3%, about half its prior forecast of 5% to 6% growth. "The customer remains challenged," Wal-Mart U.S. President Bill Simon said.

Wal-Mart has missed Wall Street estimates in recent quarters as its core lower-income customers in the U.S. contend with high gasoline prices and persistently high unemployment levels. This year's comparable-store sales have also been pressured by a delay in income-tax-refund checks, severe weather conditions and a higher payroll tax.

Executives warned an inventory increase of 6.8%, primarily driven by softer sales, could cause Wal-Mart to pull back on orders from suppliers to make room for an expanded array of holiday goods.

Strong expense-control efforts helped Wal-Mart's margins in the past fiscal quarter, but the retailer is still grappling with costs related to foreign bribery charges and revamping its e-commerce operations. Expenses related to foreign bribery allegations and an overhaul of its compliance programs came in at $82 million this quarter, $12 million to $17 million higher that executives expected.

So far this year, the Bentonville, Ark., company has incurred $155 million in expenses related to the compliance overhaul and bribery investigations by the U.S. Department of Justice and the Securities and Exchange Commission, as well as a number of shareholder lawsuits. The retailer hasn't disclosed whether it has identified any violations, but says it is cooperating with all investigations.

In addition, earnings per share were reduced by one cent due to an undisclosed charge for a "certain non-income tax matter," in operating expenses within Wal-Mart International.

Operating margin edged down to 5.8% from 5.9%.

"There are areas of our business where we can do a better job, and we will," Chief Executive Mike Duke said.

--Melodie Warner contributed to this article.

Order free Annual Report for Wal-Mart Stores, Inc.

Visit http://djnweurope.ar.wilink.com/?ticker=US9311421039 or call +44 (0)208 391 6028

Order free Annual Report for Wal-Mart Stores, Inc.

Visit http://djnweurope.ar.wilink.com/?ticker=US9311421039 or call +44 (0)208 391 6028

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on WAL-MART STORES, INC.
08/27 WAL MART STORES : Walmart goes online
08/27 WAL MART STORES : Mart takes Texas to court to crack liquor-sales market
08/26 WAL MART STORES : Brand New Wake Forest Sam’s Club to Open Thursday
08/26 WAL MART STORES : New, larger Walmart under construction at Market Centre plaza ..
08/26 MASSMART : slashes dividend
08/26DJWAL MART STORES : Cotton Supplier Faced Wal-Mart Scrutiny Before -- WSJ
08/26 WAL MART STORES : German grocer eyeing Clayton
08/25DJWAL MART STORES : Unclear How Investigation Turned Out; No Comment from Wal-Mart
08/25 WAL MART STORES : Walmart expanding curbside grocery pickup at more St. Louis ar..
08/25 PPG INDUSTRIES` : Paints Brand Launches Portal for Homeowners
More news
Sector news : Other Specialty Retailers - NEC
08/25DJMICHAELS : Cuts Outlook After 'Choppy' Environment in First Half
08/22DJHELP WANTED : Office Supply Chain CEO
08/17DJSTAPLES : Swings to Loss, to Close 50 Stores This Year
08/16DJDICKS SPORTING GOODS : Dick's Sporting Goods Posts Surprise Increase in Financia..
08/16 FTSE slips from 14-month highs as UK inflation bites
More sector news : Other Specialty Retailers - NEC
News from SeekingAlpha
05:08p My Updated Portfolio, With 2 Purchases
04:51p Dollar General's Growth Initiatives Will Definitely Add To The Valuation
06:35a Dogs Of The Dow Analysts See UnitedHealth As Top Gainer In August
06:30a How To Trade Dividend Aristocrats (Part 3)
04:15a Shopping For Value In The Brick-And-Mortar Aisle
Advertisement
Financials ($)
Sales 2017 487 535 M
EBIT 2017 23 052 M
Net income 2017 13 684 M
Debt 2017 41 700 M
Yield 2017 2,82%
P/E ratio 2017 16,12
P/E ratio 2018 15,80
EV / Sales 2017 0,54x
EV / Sales 2018 0,53x
Capitalization 221 718 M
More Financials
Chart WAL-MART STORES, INC.
Duration : Period :
Wal-Mart Stores, Inc. Technical Analysis Chart | WMT | US9311421039 | 4-Traders
Full-screen chart
Technical analysis trends WAL-MART STORES, ...
Short TermMid-TermLong Term
TrendsBearishBullishBullish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 27
Average target price 73,2 $
Spread / Average Target 2,8%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
C. Douglas McMillon President, Chief Executive Officer & Director
Greg B. Penner Chairman
Michael J. Bender Chief Operating Officer & Global eCommerce
Brett M. Biggs Chief Financial Officer & Executive Vice President
Karenann K. Terrell Chief Information Officer & Executive VP
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
WAL-MART STORES, INC.16.05%221 718
SM INVESTMENTS CORPORA..--.--%17 917
TRACTOR SUPPLY COMPANY-1.05%11 308
MARKS AND SPENCER GROU..-23.74%7 363
DUFRY AG-3.92%6 348
STAPLES, INC.-10.35%5 522
More Results