Sam’s club sales fell 1.3% YoY to $14 billion, while the USA sales grew 3.1% YoY and clocked in at $76 billion, taking consolidated net sales up 0.1% YoY to $119 billion. Analysts expected revenues of $120.16 billion. The retailer had forecast 95 cents to $1.08.Wal-Mart said sales at US stores open at least a year rose 1.6 percent, excluding fuel price fluctuations. “Our strategy in the U.S. is working as we delivered an eighth consecutive quarter of positive [LFL], and global also performed well”, said Doug McMillon, the retail behemoth’s chief executive officer.
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Online sales growth accelerated sequentially for the first time in more than five quarters, rising 11.8 percent from 7 percent in the first quarter. (NYSE:WMT) reports its next earnings announcement on or around 2016-08-18, investors will be paying particularly close attention to the reported earnings per share number versus the Wall Street analyst estimates.
Comp sales for the 13-week period ending October 28 is expected to be up 1 percent to 1.5 percent for Walmart U.S., and for Sam’s Club, excluding fuel, is slightly positive.
Consolidated operating income increased 1.6 percent from previous year to $6.17 billion, including a gain of $535 million from the sale of Yihaodian.
Previously for the quarter ended on 1/2016, Wal-Mart Stores, Inc.
Other Hedge Funds, Including, Barrow Hanley Mewhinney Strauss reduced its stake in WMT by selling 207,095 shares or 4.26% in the most recent quarter. It excludes the non-cash gain of 14 cents, net of tax, from the sale of Yihaodian to JD.com.
Wal-Mart cruised to a 52-week high of $75.19 earlier. Visit MarketWatch.com for more information on this news.
Diluted earnings were $1.21 per share with an impact of 3 cents per share from currency headwinds. While revenues increased on a year-over-year basis owing to an improvement in comps, earnings witnessed a decline.
Additionally, the company has EPS of -1.39. 2 Months Ago, shares have been suggested as “BUY” from “0” brokerage firms and recommended as “Strong Buy” by “5” brokerage firms.
Walmart’s nationwide rollout of Walmart Pay was completed in June 2016.
Its growing footprint of smaller stores is likewise benefiting the chain.
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A bright spot for Target is that its online stores produced a 16 percent increase in sales, although the amount was not broken down in the financials. But despite the near-term hit to profitability, we think that this spending is prudent, particularly given the threats Wal-Mart faces from competitors (namely Amazon) that are also investing aggressively. However, along with its wage investments, the company is facing headwinds from a stronger USA dollar and food deflation.
