Walmart has issued a second straight profit warning and offered cautious guidance for the year ahead.
The world’s biggest retailer set forecasts below analysts’ expectations, despite reporting a strong fourth quarter with revenues for the period up 7.3% to $163bn (£136.3bn). Consolidated operating income for the period was down 5.5% to $5.6bn (£4.63bn).
Walmart said comparative sales for the quarter grew 8.3% year-on-year, ecommerce sales were up 17% year-on-year and it continued to gain market share in grocery.
Walmart international sales for the quarter were $27.6bn, up 2.1%, despite a nearly $1bn hit from international currency fluctuations.
For the full year, Walmart reported total revenues of $611.3 bn, up 6.7%. Internationally, Walmart’s sales for the year were flat and operating income dipped 21.1%.
Walmart president and chief executive Doug McMillon said: “We’re excited about our momentum. The team delivered a strong quarter to finish the year, and as our results in the last two quarters show, they acted quickly and aggressively to address the inventory and cost challenges we faced last year.
“We built momentum in the third quarter and that continues. We are well-positioned to start this financial year.”
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