Prices to be lowered in stores
US: Walmart 4th quarter lower than expected
Net profit for the three months ending 31 January dropped by 15% to $5.16bn ($1.50 a share), although underlying profit was up 2% to $1.44 a share (within its forecast range of $1.42 to $1.48 per share). Group sales were up 5.8% to $122.4bn, helped by a 13.1% rise at its International unit, 6.8% growth at Sam’s Club, and a 2.4% rise at its Walmart US outlets.
Like-for-like sales in the US rose by 1.5%, towards the upper end of its flat to +2% forecast, the second straight quarter that sales have grown on such a basis after nine previous quarterly drops.
There was evidence of stronger footfall in holiday periods, most likely generated by discounted lines availability.
Internationally there were mixed results to report - Asda showed a slowdown in growth, though Walmex posted better than expected figures, aided no doubt by its continuing expansion.
CEO Mike Duke said the group will focus on ways to keep products affordable, despite rising fuel prices, adding: “You can expect us to invest even more in lower prices”. He said the group is banking on consumer confidence to grow with an expected drop in unemployment figures, but added that margins may decline as it looks to lower costs.
Source: www.kamcity.com
