Walmart profit misses expectations

Walmart-business people re-el magazine

19 August 2015

Tags:business, business news  financial news, business finance, small business websites


US supermarket giant Walmart has posted a fall in profits, missing analysts’ expectations, and a drop in sales at its UK supermarket, Asda.

Walmart reported net income of $3.48bn (£2.2bn) in the three months to July, down from $4.09bn a year earlier.

Asda said like-for-like sales were down 4.7% in the period compared with last year, because of tougher competition.

The quarterly report is the worst to date for Asda under Walmart’s ownership.

Investment

Walmart sales at stores open for more than a year increased by 1.5% in the period, while revenue was $120.2bn, roughly unchanged compared with a year earlier.

Chief executive Doug McMillon said: “We’re pleased that the investments we’ve made are helping to improve our business. Even if it’s not as fast as we would like.”

Walmart said its fall in profit was due to increased investment in staffing – including more worker hours on the shop floor.

It also cited weaker profit margins in its US pharmacy business.

‘Upward curve’

Asda’s chief executive, Andy Clarke, said: “We continue to navigate a steady course through the worst storm in retail history, despite another challenging quarter.”

At a briefing, he added: “We’ve hit our nadir, but we’re on the upward curve now.”

He went on to say that he believed Asda’s third-quarter results would be better, with “signs of recovery” being seen already.

“We should see positive green shoots as we go into the new year,” he added.

Analyst Clive Black at Shore Capital said: “We have been somewhat surprised by the magnitude of Asda’s under-performance in 2015 and, indeed, we continue to scratch our heads on this matter given the magnitude of sales weakness recorded today.

“The competitive dynamics of the industry are clearly still not working in Asda’s favour.”

Tags:business, business news  financial news, business finance, small business websites

Source

 


 

 

Business see also….

 

Amazon boss Jeff Bezos defends company’s workplace culture

18 August 2015

Amazon's founder-business-people re-el magazineThe world’s biggest online retailer is firing back against reports of an abusive corporate culture….read more

 

 


Shell gets final permit for Arctic oil drilling

18 August 2015

Shell oil-business people re-el magazineOil and gas giant Shell has been granted the final permit it needs to begin drilling below the ocean floor for oil….read more

 

 


China does not want ‘currency war’ with west, says central bank economist

17 August 2015

China-business-people re-el magazineMa Jun seeks to assuage fears of tit-for-tat devaluations with US, Europe and Japan after its shock interventions….read more

 

 


IndiGo Confirms $27 Billion Order to Buy 250 Airbus Planes

17 August 2015

indian airbus-business-people re-el magazineIndiGo, India’s biggest airline, firmed up an order to buy as many as 250 Airbus Group SE A320neo….read more

 

 


Japan hit by weaker economic growth

17 August 2015

Japan-business news-people re-el magazineJapan’s economy shrank in the second quarter of the year, marking a setback for the government’s ….read more

 

 

 


Categories