US: Wal-Mart Q2 profit edges up 1.3%
- Q2 net profit up 1.3% to US$4.1bn
- Net sales rise 2.4% to $116.2bn
- Apparel boosts “disappointing” US performance
World’s biggest retailer Wal-Mart Stores posted an underwhelming set of second quarter results, with US comparable store sales flat despite a slight overall profit increase.
The company downgraded its full-year sales and earnings forecasts, predicting net sales to rise 2-3% (versus its previous guidance of up 5-6%) and earnings per share of $5.10-5.30, down from $5.20-5.40 previously.
US sales rose 2.1% to $68.7bn, international revenues were up 2.9% to $32.96bn, and Sam’s Club sales increased 2.6% to $14.53bn, in the three months to 31 July.
Walmart US president and CEO Bill Simon singled out apparel for praise after the category recorded a low single-digit positive comp figure in the period, while apparel was also a plus for Sam’s Club.
Company president and CEO Mike Duke admitted that sales and US comps had fallen below expectations, but added: “While the retail environment was challenging across all of our markets, the Walmart US and Sam’s Club businesses improved comp sales from the first quarter, and the growth of International sales was consistent.
“I’m encouraged by our position to execute in the second half of the year, particularly with the steps we’re taking to improve performance.
“There are areas of our business where we can do a better job, and we will.”
Close to a year after the Rana Plaza disaster, progress on improving worker safety and labour rights in Bangladesh has been painfully slow - but who is responsible for the delays?...
The US-based group working to improve safety conditions for garment workers in Bangladesh says it has inspected nearly one-third (31%) of the 700 factories used by its members - and is on track to hav...
International labour organisations Industriall Global Union, UNI Global Union and ITUC are seeking international support for a day of action in support of garment workers arrested during recent strike...
Belts and leather goods maker Tandy Brands Accessories Inc is to cease its operations after defaulting on a $29m loan....
- How M&S plans to revamp its clothing business
- The difference between compliance and safety?
- Yarn-forward rules weigh on Vietnam TPP potential
- Central America must make better use of DR-CAFTA
- UK retailers key to domestic manufacturing growth
- Gap accused of rights violations in supply chain
- M&S to see "departure" of sourcing chiefs?
- US Q1 in brief – Guess, Burlington Stores, Sears
- Adidas Speedfactory eyes large-scale production
- H&M, Inditex and Nike rated supply chain leaders