WMT Walmart Inc

By Bowdeya Tweh 

Walmart Inc. lowered its profit targets and said it would open just 10 new U.S. stores next fiscal year, as the world's biggest retailer focuses its efforts on e-commerce shopping.

The lowered profit goal for the current year reflects the acquisition of Indian e-commerce company Flipkart, which Walmart paid $16 billion to buy earlier this year. At the time, Walmart said the deal was a long-term bet on a fast-growing market that would depress earnings.

The world's largest retailer said it expects to earn between $4.65 and $4.80 a share in the year ending Jan. 31, down from $4.90 to $5.05 a share. At the time of the deal, Walmart said it would lead to a per-share earnings hit of 25 cents to 30 cents this fiscal year and 60 cents next fiscal year.

The deal, the biggest in Walmart's history, is part of an effort to ramp up its web business. The company said Tuesday it expects e-commerce sales, which are still a small slice of its total business, to rise 35% next year, down from 40% growth predicted during the current fiscal year. Next year, sales at existing U.S. stores are expected to rise between 2.5% and 3%, said the company.

In the second quarter, quarterly sales for Walmart accelerated at the fastest rate in more than a decade.

Walmart stock moved slightly lower in premarket trading, down 1% at $93.82.

Write to Bowdeya Tweh at Bowdeya.Tweh@wsj.com

(END) Dow Jones Newswires

October 16, 2018 08:05 ET (12:05 GMT)

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