NEW YORK: Retail giant Wal-Mart Stores has announced $3.3 billion quarterly earnings, seven per cent down from the year-ago period.
Sales were $114.83 billion, down a scant 0.1 percent the 2014 quarter. Walmart posted higher revenues at namesake US stores, but sales dropped in both international Walmart and at its wholesale chain, Sam’s Club.
Operating and administrative expenses rose 2.8 percent to $22.7 billion. In addition to higher wages for US staff, Walmart has boosted spending on e-commerce investment. “We had a solid first quarter,” said chief executive Doug McMillon. “We need to continue to get better at consistently running great stores, clubs and e-commerce everywhere we operate … and we are.”
Walmart in February said it would boost wages for 500,000 workers in the US to at least $9 per hour, $1.75 above the federal minimum wage. The wage hike trimmed earnings in its just-finished first quarter of fiscal 2016 and will also pinch results in the second quarter.
Walmart’s first-quarter earnings translated into $1.03 per share, a penny shy of analyst projections. Walmart estimated second-quarter earnings of between $1.06 and $1.18 per share. Analysts estimate earnings at $1.17 per share. Walmart shares fell 2.7 percent to $77.80 in pre-market trade.
