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

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

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets 

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 CET
   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
02/19DJWAL MART STORES : Mart's Big Box of Trouble -- Ahead of the Tape
02/19 WAL MART STORES : Walmart bomb threat leads to charges
02/19 WAL MART STORES : Defining Chocolate
02/19 SILVER LININGS : Communities, churches turn to 19th century nursing traditions f..
02/19 WAL MART STORES : Pursuit ends after car strikes Henderson gas station's pumps
02/19 WAL MART STORES : Peeps flavored Oreos are upon us. Can the end of the world be ..
02/18 WAL MART STORES : Josiah Nelson
02/18 WAL MART STORES : Bremen man charged with arson in fatal fire
02/18 WAL MART STORES : Katie Lamb looks forward to news year on Main Street
02/18 SHOPLIFTERS SET SMALL FIRE IN WALMAR : Police
More news
Sector news : Supermarkets & Convenience Stores
02/18DJWHOLE FOODS MARKET : Wins Votes, but Not Without Grumbles -- WSJ
02/18DJWHOLE FOODS MARKET : Shareholders to Meet to Discuss Growth Declines -- Update
02/17DJWHOLE FOODS MARKET : Shareholders to Meet to Discuss Growth Declines
02/17DJMAJEDIE ASSET MANAGEMENT LTD MAJEDIE : Form 8.3 - Tesco Plc
02/17DJTESCO : Investec Bank plc Form 8.5 (EPT/RI) - Tesco Plc
More sector news : Supermarkets & Convenience Stores
News from SeekingAlpha
02/19 The Demise Of The Arkansas Fed
02/17 Tough Consumer Spending Environment And Its Potential Impact On Macy's, Wal-M..
02/17 'Safe' Dividend Dogs Of The Dow For Winter Relief
02/17 Alibaba, JD.com Step Up Supermarket Drive
02/17 WAL-MART : Is A Dividend Increase Coming Soon?
Advertisement
Financials ($)
Sales 2017 485 748 M
EBIT 2017 22 808 M
Net income 2017 13 723 M
Debt 2017 40 581 M
Yield 2017 2,90%
P/E ratio 2017 15,63
P/E ratio 2018 15,95
EV / Sales 2017 0,52x
EV / Sales 2018 0,52x
Capitalization 213 187 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 INC
Short TermMid-TermLong Term
TrendsBullishNeutralNeutral
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 36
Average target price 73,8 $
Spread / Average Target 6,4%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
C. Douglas McMillon President, Chief Executive Officer & Director
Gregory B. Penner Non-Executive 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 INC0.36%213 187
ALIMENTATION COUCHE TA..0.47%27 072
CARREFOUR-1.27%18 138
DAIRY FARM INTERNATION..19.49%11 442
WHOLE FOODS MARKET, IN..0.49%9 845
CENCOSUD SA--.--%8 714
More Results