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Walmart Stores Inc posted weaker-than-expected quarterly earnings on Thursday due to poor US sales and said its profit for this quarter might also miss Wall Street's forecast as it spends more on its foreign bribery probe, e-commerce and international operations.
Everything from tax pressures on shoppers to a cool start to spring led to an unexpected 1.4 per cent drop in sales at Walmart US stores open at least a year. The company forecast earnings of $1.22 to $1.27 per share for its second quarter, which began on May 1. Analysts had been expecting $1.29, according to Thomson Reuters I/B/E/S. The year-earlier profit was $1.18 per share.
First-quarter same-store sales at Walmart US, by far the company's largest unit, fell 1.4 per cent. Both Walmart and analysts had expected such sales to be about flat with those of a year earlier. Walmart US Chief Executive Officer Bill Simon said the delay in income tax refund cheques, a two per cent increase in payroll taxes and "some of the most unfavourable spring weather we've seen in recent years across much of the country" hurt business in his stores.
Missing expectations
Walmart earned $3.78 billion, or $1.14 per share, in the first quarter ended on April 30, up from $3.74 billion, or $1.09 per share, a year earlier. The analysts' average estimate was $1.15 per share. Wal-Mart had forecast a profit of $1.11 to $1.16 per share.
First-quarter revenue rose 1 per cent to $114.19 billion. Analysts expected $116.29 billion.
