Wal-Mart narrows outlook after Q3 profit fall
- Q3 profit down 1.5% to $3.83bn
- Sales up 2.8% to $118.1bn
- Annual earnings outlook narrowed
Sales were up 2.8% in the third quarter
Retal giant Wal-Mart Stores has narrowed its earnings guidance for the full year after posting a 1.5% decline in third-quarter net profit.
Net income reached US$3.83bn for the three months to 31 October, compared to $3.89bn in the same period of last year.
Sales rose 2.8% to $118.1bn from $114.88bn a year ago. In the US, Wal-Mart saw sales grow 3.4% to $70.03bn, while international sales climbed 1.7% to $33.66bn. Sam's Club, meanwhile, posted a 2.3% increase in sales to $14.39bn. US comparable store sales, including fuel, edged up 0.5%.
"We're investing in key areas of our business, including wages in our US stores and in e-commerce and mobile capabilities," said president and CEO Doug McMillon.
"We continue to see opportunities to improve our business. Being the price leader is an ongoing priority for us and a commitment to customers. As with every year, that is even more important during the holiday season."
He added that lower fuel prices in the US and other markets will work in the retailer's favour during the fourth quarter.
The company expects full-year earnings per share, including the 0.03% decline related to the closure of underperforming stores in Japan, to be range from $4.92 to $5.02, compared to its earlier guidance of $4.90-5.15.
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