Wal-Mart Sales Edge Up, Though Profit Falls
November 17 2016 - 7:50AM
Dow Jones News
By Joshua Jamerson
Wal-Mart Stores Inc.'s revenue rose in the third quarter, though
the increase was less than expected, and profit fell 8.2% as the
retailer continues to invest billions to boost its e-commerce
business and improve stores.
Still, the company said same-store sales rose 1.2%, the ninth
straight quarterly increase in the gauge and in line with its
projection for an increase between 1% to 1.5%. Meanwhile, traffic
rose 0.7% and e-commerce sales rose 21%, an acceleration from the
second quarter.
Wal-Mart's stock fell 3.3% to $69.03 in premarket trading.
The results from Wal-Mart, the nation's largest retailer, come a
day after rival Target Corp. reported sales in existing stores fell
slightly, but signaled sales could return to growth over the
holiday season as the retailer reported higher online sales buoyed
results in the latest quarter.
Many corners of the retail industry have looked rosy ahead of
the holidays, cheering investors and analysts who have watched
Amazon.com Inc. bite into the brick and mortar business. Retailers
are in a race to log as many sales as possible before Christmas, a
stretch that can make or break a retailer's financials for the
year.
While department stores and some apparel makers reported slower
sales in recent weeks, discounters, home improvement chains and
others said sales are brisk ahead of the holidays. Earlier this
week October retail sales logged their best growth rate in nearly
two years.
Over all, Wal-Mart posted a profit of $3.03 billion, or 98 cents
a share, compared with $3.3 billion, or $1.03 a share, a year ago.
The company had projected per-share earnings in a range of 90 cents
to $1.
Revenue edged up 0.7% to $118.2 billion, below analysts'
projections for $118.69 billion.
Wal-Mart also lifted the bottom end of its full-year guidance
range for adjusted profit, now expecting $4.20 to $4.35 a share.
Previously, the low-end was pegged at $4.15.
Write to Joshua Jamerson at joshua.jamerson@wsj.com
(END) Dow Jones Newswires
November 17, 2016 07:35 ET (12:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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