Lower international sales cloud Walmart 3rd quarter
NEW YORK: A fall in international sales income for retail giant Wal-Mart Stores held down total revenues and hit profits for in the third quarter, the company reported.
The slow international economy, still tough competition in the United States and heavy investment in stores and online sales continued to act as a drag net profits in the three months to October 31, the company said.
While sales in its main market the United States rose 2.5 per cent over the year-ago quarter, to US$74.6 billion, international sales slumped 4.8 per cent to US$28.4 billion.
The company stressed that the impact of currency shifts weighed down the international sales figures, and excluding that factor, sales would have been 2.4 per cent higher.
Nevertheless, overall domestic and international revenues from sales and other sources rose a tepid 0.7 per cent over a year ago.
Net profits fell 8.2 per cent year on year to US$3.0 billion, or 98 cents a share.
Net profits were below what analysts had expected, and shares of the company were down 3.9 per cent at US$68.62 in early afternoon trade.
Doug McMillon, president and chief executive of the company, called the quarter “solid,” pointing to gains in online sales operations.
“It’s great to see an improving e-commerce business compliment the momentum we have in our stores,” he said.
In August, Wal-Mart announced it was paying US$3 billion to take over e-tailer Jet.com to expand its online sales presence.
McMillon also said the company was well positioned for the crucial fourth quarter, which spans the gift-giving holiday season, but gave no specific forecasts. — AFP