Wal-Mart Misses 1Q Earnings Estimate
by May 16, 2013 10:46 am 80 views
Wal-Mart Stores Inc. saw U.S. same-store sales fall in a first quarter “marked by considerable headwinds,” the Bentonville-based company said in a news release Thursday.
The world’s largest retailer reported earnings of $3.78 billion, or $1.14 per share, for the quarter that ended April 30. That’s up 1.07 percent from profit of $3.74 billion, or $1.09 cents per share, in the same period a year ago.
Wal-Mart missed the average earnings estimate of $1.15 per share from 22 analysts surveyed by Thomson Reuters.
Revenue rose 1.04 percent to $114.19 billion. That total comprises net sales, including fuel and membership fees, from Wal-Mart U.S., Wal-Mart International and Sam’s Club.
Net sales for Wal-Mart International grew 2.9 percent.
In its U.S. division — the company’s largest — Wal-Mart reported net sales growth of 0.3 percent. Sales at stores open at least a year, considered a key indicator of a retailer’s health, fell 1.4 percent for the 13 weeks that ended April 26.
The company blamed bad weather and delayed income tax refunds for the drop in same-store sales.
Net sales at Sam’s Club, Wal-Mart’s warehouse club division, rose 0.1 percent. However, its same-store sales dipped 0.2 percent.
Wal-Mart president and CEO Mike Duke said in the release he’s confident about the company’s long-term strategy and direction.
“Our expectations about our U.S. businesses’ performance, coupled with more discipline in international, will allow us to improve our performance throughout the year,” he said.
E-commerce sales grew more than 30 percent over last year’s first quarter, Duke noted, adding Wal-Mart’s investments in that sector are paying off.
Charles Holley, the retailer’s executive vice president and chief financial officer, said Wal-Mart returned $3.8 billion to shareholders during the quarter through dividends and repurchases.
The company expects second-quarter earnings per share to be in the range of $1.22 to $1.27, Holley said. Wal-Mart earned $1.18 per share in the second quarter last year.
At mid-morning Thursday, Wal-Mart’s shares were down $1.67 or 2 percent, trading at $78.26 on the New York Stock Exchange. Shares have traded between $61.25 and $79.96 in the past year.
The company will hold its annual shareholders meeting June 7 in Fayetteville.