Walmart trims 2013 outlook amid tight spending

NEW YORK CITY, USA: US retail behemoth Walmart on Thursday reported a 1.3 percent increase in quarterly earnings, but slashed its full-year financial outlook amid tight consumer spending in the United States and abroad.

16 Aug 2013

Earnings for the second quarter to July came in at US$4.07bn on revenues of US$116.22bn, up from last year's level of US$4.02bn on US$113.52bn.

But comparable sales in Walmart stores, dipped 0.3%.

Walmart executives pointed to higher US payroll taxes, which dragged down earnings in the previous quarter. In addition, Walmart said international consumers are also watching their spending.

"The retail environment remains challenging in the US and our international markets, as customers are cautious in their spending," said Walmart chief financial officer Charles Holley.

Walmart trimmed its forecast for this year's net sales growth to between 2% and 3% from a previous projection of between 5% and 6% growth.

The company also forecast that full-year earnings would be between US$5.10 and US$5.30 a share, compared with the previous range of between US$5.20 and US$5.40.

"This revision reflects our view on current global business trends and significant ongoing obstacles from anticipated currency exchange rate fluctuations," Holley said.

Source: AFP via I-Net Bridge

Source: I-Net Bridge

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