Wal-Mart raised its earnings outlook for the year and delivered strong profit and sales in the second quarter after the world’s largest retailer revamped its stores and improved the shopping experience online, changes that appear to be winning over customers.
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The company now sees full-year earnings in a range of $4.15 to $4.35 a share. Total revenue rose 0.5 percent to US$120.9 billion.
At Walmart U.S., same-store sales grew 1.6%, the eight consecutive quarter of gains. The FactSet estimate is $4.27.
The world’s biggest retailer reported revenue of $120.9 billion in the second quarter, surpassing analysts’ projection of $119.3 billion, and a 0.5% uptick over that three month period previous year. This year Company’s Earnings per Share (EPS) growth is 27.80% and next year’s EPS growth is 6.16%.
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Earlier this month, the company paid a hefty $3.3 billion to buy Jet.com.
Global e-commerce sales and GMV increased 11.8% and 13.0%, respectively, on a constant currency basis.
The company generated $120.85 billion in total revenues, exceeding its $120.16 billion consensus estimates.
Of Britain’s big four supermarkets, which also includes market leader Tesco, Sainsbury’s and Morrisons, Asda has been the laggard in sales terms for two years, losing customer traffic and food volume in its large format stores.
The supermarket chain is relying on £1.5bn of price reductions over five years to win customers back.
The world’s largest retailer also raised its fiscal-year profit forecast, sending its shares up almost 2 percent.
In recent years, the retail story has been all about the consumer shift from brick-and-mortar to online, where goods and services can be obtain more cheaply and conveniently. Mean Earnings Per Share (EPS) forecast is set at $1.02 by these analysts for This Quarter.
Previously for the quarter ended on 1/2016, Wal-Mart Stores, Inc.
To accelerate its e-commerce business and narrow the widening gap with rival Amazon.com Inc, Wal-Mart recently paid more than $3-billion to acquire internet retailer Jet.com, the highest price ever for an online startup.
The company likewise recorded its seventh straight quarter of positive traffic, which grew 1.2 percent.
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Shares of Wal-Mart were trading up 3.5 per cent at US$75.48 before the market opened. On the other hand, Wal-Mart has also been aggressively working on all possible actions to convert its sales growth into huge profits. Over the 52-week time span, the stock notched a high price of $74.8 and its minimum price was $56.3. The company’s distance from 52 week high price is -2.50% and current price is above +33.46% from 52 week low price.
