An increase of 2.8% has been reported by Wal-Mart Stores, Inc. (NYSE:WMT) in its profit for Sam’s Club Stores’ same-stores sales of third quarter; however, the revenue generated was lower than what was expected.
The US giant in retailing has cut down its earnings outlook for the year.
CEO and the president of Wal-Mart, Mike Duke said that his company is focusing on improving and increasing its top-line sales like comp sales. Duke believes that Wal-Mart is up against some strong competition in local and online stores.has also predicted that its earnings in the current quarter are going up from the current rate of $1.60 to $1.70 a share; whereas the analyst Thomson Reuters believes that Wal-Mart’s rate will only rise up to $1.69 a share.
The same-store sales reported by the company do not include fuel, which went down to 0.1% in the recent quarter’s report as compared to last year’s 1.7% around the same period. The comparable-store sales for Wal-Mart also thinned last year because its clients are facing a slow increase in wages and high unemployment levels. Analysts believe that the government shutdown that lasted for 16 days was also the reason for this low spending; they also believe that the uncertainty surrounding the Affordable Care Act is affecting the confidence of the customers due to which spending will be slow throughout 2013.
To attract more customer base during the holiday season, Wal-Mart announced in September some wonderful discounts on electronics and toys, which were available from Halloween. During the quarter that ended in October this year, the retail store reported a profit of $3.74 billion at $1.14 a share, this figure was an improved as compared to last year’s figures of $3.64 billion at $1.08 a share around the same period.
Wal-Mart’s revenue increased by 1.7% and is equal to $115.69 billion; however this figure is shy of Thomson Reuters’ estimates of $116.81 billion.
In the current session of trading, shares of Wal-Mart Stores, Inc. (NYSE:WMT) went down by -0.60% ($78.38).