US retail giant, Walmart, has notched a 2.8 per cent rise in profits, but reported continued sluggishness at its namesake American stores and trimmed its annual profit forecast. Wal-Mart Stores Inc, the world’s largest retailer, said net income for the third quarter came in at $US3.7 billion ($A3.98 billion) on revenues of $US115.7 billion, up from $US3.6 billion on revenues of $US113.8 billion in the year-ago period. The earnings translated into $US1.14 per share, a penny above ana
lyst forecasts.
But Walmart reported 0.3 per cent lower comparable sales at its US Walmart stores.
The company had previously said sales in this division would be “relatively flat.”
Comparable sales at Walmart’s Sam’s Club chain rose 1.1 per cent, while Walmart International net sales rose 0.2 per cent.
Walmart in recent quarters has said its US performance was hit by higher payroll taxes and petrol prices, as well as low inflation for groceries.
The company said the retail environment remains tough.
“Our most important priority is growing top line sales, including comp sales,” said CEO Mike Duke.
“The retail environment, both in stores and online, remains competitive.”
Walmart trimmed its fourth-quarter and annual profit forecast, citing special items.
The company now expects earnings of between $US5.01 and $US5.11 for the year. It previously forecast a range of $US5.10-$US5.30.
Walmart said its earnings would lose 10 cents per share due to closing about 50 underperforming stories in Brazil and China and ending a franchise agreement in India.
Without those items, underlying earnings would be $US5.11-$US5.21 a share.
Walmart shares were down 0.9 per cent in pre-market trading.
AFP
