US: Wal-Mart shares fall after profits miss forecasts
- EPS misses Wall Street forecasts
- Net sales up but comp sales fall in US
- Wal-Mart targets up to 2% increase in Q2 US comp sales
Shares in Wal-Mart were down today (16 May) after the world's largest retailer posted quarterly earnings that missed Wall Street forecasts - and booked lower US sales.
Wal-Mart reported diluted earnings per share of $1.14 for the quarter to 30 April, a 4.6% rise on the year. However, according to a poll of analysts by Thomson Reuters, Wall Street has forecast EPS of $1.15.
Operating income was up 1.1% at $6.5bn, while profits also rose 1.1% to $3.78bn. Net sales increased 1% to $113.4bn. Nevertheless, underlying sales in the US fell. Wal-Mart booked a 1.4% drop in comparable-store sales in the US, citing a delay in consumers receiving tax rebates, "challenging weather conditions" and lower-than-expected grocery inflation.
The retailer said it expects comp sales from its US business to be at worst flat year-on-year or up 2% at best in the second quarter.
Internationally, Wal-Mart's sales outside the US were up 2.9% at $33bn. It claimed it had gained market share in the "majority" of its non-US markets.
Shares in Wal-Mart were down 1.14% at $78.72 at 09:52 ET.
Help test our new apparel sourcing tool.
UK retailer Asda saw its third-quarter sales growth slow, but the business is looking to improve its clothing offer in store as part of a wider investment, according to one analyst....
Indian apparel exports grew almost 13% during the six months from April to October, according to figures released this week....
News that the minimum monthly wage for Bangladeshi garment workers is set to rise by 77% has surprised labour leaders - who say that as far as it they are concerned, discussions are still on-going....
Onshoring or reshoring could give UK manufacturing a boost by relocating production of some goods from current low-cost locations overseas, according to a new report....
- China leads US apparel sources with falling prices
- Hard hit Turkish industry is not knocked out
- Vietnam grows share of US apparel imports in 2016
- "Power of the many" drives change at Otto Group
- US apparel sector braces for potential cost hikes
- US Q4 in brief – Foot Locker, Nordstrom, Carter's
- Bangladesh crackdown has cost garment sector $100m
- Adidas and Burberry recognised for sustainability
- Inditex and H&M boycott Dhaka Apparel Summit
- Macy's will "do the right thing", says Lundgren
- When Things Go Wrong - A Practical Guide to Managing Common Problems in Apparel Sourcing
- Outdoor performance apparel 2016: A broader perspective
- Technical textile markets: product developments and innovations, December 2016
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Global market review of lingerie – forecasts to 2022