Walmart lowers earnings estimate

Walmart Inc. executives told investors Tuesday that they have lowered their guidance for the fiscal year by 25 cents because of expenses related to the purchase of Flipkart Group. The Bentonville retailer’s adjusted earnings per share are now expected to range from $4.65 to $4.80.

Brett Biggs, Walmart’s chief financial officer, said in a live webcast that the company had expected the revision once the $16 billion transaction closed.

In reporting secondquarter earnings on Aug. 16, Walmart’s guidance for fiscal 2019 excluded any effects from the acquisition of the Indian online retailer, which was not finalized at the time. The deal closed Aug. 18.

Acquiring a majority stake in Flipkart represents Walmart’s commitment to expanding its presence in India, said Judith McKenna, chief executive officer of Walmart’s international division. She said Walmart has been in India since 2009 with its wholesale “cash-and-carry” stores. Flipkart gives the retailer access to a market that has a growing middle class, with a median age of 28 and more than 300 million smartphone users.

In years past, foreign retailers needed approval from the Indian government to own more than 49 percent of a retail operation, leading many companies to rely on franchises or local distribution. The law was relaxed earlier this year.

Walmart said Tuesday that it plans to open fewer new stores in the U.S. but will add stores in international markets, especially Mexico and China. It said it will also continue investing in e-commerce and in technological

innovations to aid both customers and employees.

The company also announced a partnership with Advance Auto Parts. Beginning next year, the Virginiabased auto-parts retailer will have a specialty store on Walmart’s website, said Marc Lore, president and chief executive officer of Walmart’s e-commerce U.S. division. Advance Auto Parts’ products also will be sold at Walmart’s 2,500 auto-care centers.

The annual investors

meeting, held in Bentonville, gives financial analysts and advisers a chance to hear presentations from Walmart’s top executives on the retailer’s strategic plans and outlook. A webcast of the meeting was streamed on the company’s website.

Wall Street reacted positively to Walmart’s announcements. The retailer’s shares rose $1.99, or 2.12 percent, to close Tuesday at $95.81 on the New York Stock Exchange. The stock has traded between $81.78 and $109.98 in the past year.

Walmart will report thirdquarter earnings on Nov. 15.