WalMarts has drop in U.S. sales
Written on February 19, 2011 by Julia Woodard
Walmarts is an important part of the Syracuse community for consumers, employees and investors alike. And so news about the financial affairs of Walmarts is always of interest here. Matt Egan has reported for FoxBusiness News “Wal-Mart Posts Another Drop in U.S. Sales”, .
On Tuesday Wal-Mart (WMT) posted a 27% rise in fiscal fourth-quarter profits, but the retail firm’s stock took a hit as its sales and guidance left shareholders wanting more. Walmarts, which is the world’s largest retailer, said it earned $5.02 billion, or $1.41 a share, last quarter, compared with a profit of $4.82 billion, or $1.26 a share, a year earlier. With the exclusion of one-time items, Walmarts earned $1.34 a share, exceeding projections of $1.31.
But, WalMart said its sales grew just 2.5% to $115.6 billion, which was behind the Street’s view of $117.7 billion. Domestically same-store sales slid 1.8%. CEO Mike Duke said in a statement “We are pleased with Walmart’s strong earnings performance for both the fourth quarter and the full year across our three operating segments. At the same time, we are disappointed by Walmart U.S. fourth quarter sales.” Duke has blamed these results on pricing and merchandising issues in the company that “ran deeper than we initially expected.” He has gone on to say , “they require a response that will take some time to see results.”
Walmarts now says it sees 2012 EPS of $4.35 to $4.50, compared with calls for $4.43. The Syracuse community is hopeful sales for Walmarts will improve as the earnings for the firm rise.
Mandel News Service:
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