Walmart publishes disappointing figures
With net profit fell sharply in the second quarter 2015-2016, the global leader in the distribution is in decline. Walmart announced revise its forecasts downwards August 18, 2015.
Net profit down, international sales declined: Walmart announced disappointing Q2 figures for 2015-2016 in a press release dated August 18, 2015. The retail giant posted net income of 3.48 billion dollars, down 15.1% compared to Q2 2014-2015. The turnover of the company remains stable at 120.2 billion dollars, against 120.1 billion dollars at the same date in 2014, an increase of 0.1%. The action of Walmart fell directly to the NYSE, and forecasts of the company have been revised downwards for the third quarter 2015 and the fiscal year 2015-2016. Sales in the US remain good, up 4.8% compared to 2014, representing $ 74 billion. Internationally, the situation is less positive: sales are down 9.6% from $ 33.9 billion to $ 30.6 billion.
Investment and wage increases saddled Walmart
Vice President and CFO of Walmart, Charles Holley justified the disappointing figures of his company: “We continue to invest in improving the customer experience operating earnings will be under pressure for the rest of the. year, due to investments in stores and overtime.” The CFO also added that, “the gross margin of Walmart in the United States is still impacted by fluctuations in the dollar. We expect earnings per share between 4.4 and 4.7 dollars in fiscal year 2016.” journals Requirements downward: analysts were betting on earnings per share oscillating between 4.7 and 5.05 dollars.