Wal-Mart Stores Inc posted a better-than-expected quarterly profit on Thursday as its Walmart U.S. division showed a 2.6 percent rise in sales at stores open at least a year, and as warm weather and an earlier Easter enticed shoppers to spend.
TORONTO – Walmart Canada’s market share just keeps growing, but its drive to expand in a hypercompetitive retail sector weighed on the company’s quarterly results Thursday, which marked the mass merchant’s sixth-consecutive quarter of falling same store-sales and traffic.
The retailer saw an overall revenue gain of 1.2% in the period, while same-store sales, a key retail industry bellwether that strips out the effects of added square footage year-over-year, fell 1.4%.
Wal-Mart Stores Inc., the world’s largest retailer, cut its annual profit forecast for the second time this year as the uneven economy and increased competition from dollar stores hurt sales.
Profit per share in the year ending January 2014 will be US$5.01 to US$5.11, Bentonville, Arkansas-based Wal-Mart said Thursday in a statement. That’s down from an an August forecast of US$5.10 to US$5.30 and trailed analysts’ average estimate of US$5.19. The company in February forecast profit of as much as US$5.40.
What happens at Wal-Mart likely happens at many prominent retailers, and the story is not pretty: Wal-Mart Cutting Orders as Unsold Merchandise Piles Up.
Wal-Mart Stores Inc. (WMT) is cutting orders it places with suppliers this quarter and next to address rising inventory the company flagged in last month’s earnings report.