• Q1 net income drops 5%
  • Consolidated sales edge up 0.8%
  • Comparable sales remain flat
Wal-Marts share price fell on its earnings drop

Wal-Mart's share price fell on its earnings drop

Retail giant Wal-Mart Stores saw its share price slide this morning (15 May) after it booked a drop in earnings in the first quarter.

Consolidated net income in the three months ended 2 May amounted to US$3.59bn, a drop of 5% on the year ago period. The company said earnings were adversely affected by lower net sales and higher direct costs associated with more severe weather than last year.

Consolidated net sales edged up 0.8% to $114.96bn. Revenues, however, were negatively effected by around $1.6bn by currency exchange rate fluctuations. Comparable sales were relatively flat, down 8 basis points for the 13-week period.

Nonetheless, CEO Doug McMillon remained upbeat: "Wal-Mart's underlying business is solid, and I'm confident in our long-term strategies. We'll continue to invest in price and enhance our service to improve sales. We remain focused on growth across the enterprise, especially in small formats like Neighborhood Market in the US."

For the full year, Wal-Mart said it expects EPS from continuing operations to be between $1.15 and $1.25. This compares to $1.24 last year.

Wal-Mart's share price was down 2.7% to $76.62 at 14:31 GMT today.