Wal-Mart profit misses Street as US sales weak
Shares of Wal-Mart fell 2.3 percent in premarket trading to USD 78. The stock had hit a new high of USD 79.96 on Wednesday.
Wal-Mart Stores Inc's quarterly profit just missed Wall Street expectations on Thursday, with sales down 1.4 percent at its Walmart US stores open at least a year.
The world's largest retailer said US sales suffered from a delay in income tax refund checks, cool weather, less grocery inflation than expected, and the payroll tax increase.Also Read: US stocks power to record highs, dollar firmShares of Wal-Mart fell 2.3 percent in premarket trading to USD 78. The stock had hit a new high of USD 79.96 on Wednesday.Wal-Mart earned USD 3.78 billion, or USD 1.14 per share, in the first quarter ended on April 30, up from USD 13.74 billion, or USD 1.09 per share, a year earlier.The analysts' average forecast was USD 1.15 per share, according to Thomson Reuters I/B/E/S. In February, Wal-Mart had forecast a profit of USD 1.11 to USD 1.16 per share.First-quarter revenue rose 1 percent to USD 114.19 billion.Same-store sales at Walmart US fell 1.4 percent, while the company had earlier expected such sales to be about flat. Visits to Walmart US stores open at least a year fell 1.8 percent, while the average amount spent per visit rose 0.4 percent.Wal-Mart forecast earnings of USD 1.22 to USD 1.27 per share for the current second quarter, up from USD 1.18 a year earlier.The company said it expected second-quarter same-store sales, excluding those of fuel, to be flat to up 2 percent at Walmart US and up 1 percent to 3 percent at its Sam's Club warehouse store chain. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
