Walmart Says Second-Quarter Profit May Top Last Year's
Walmart (WMT) - Get Report , which topped profit estimates in the three months through April, says its earnings this quarter may be higher than last year's.
Despite a consumer-spending slowdown, earnings in the Bentonville, Ark.-based retailer's fiscal second quarter, should be 95 cents to $1.08 a share, according to Brett Biggs, Walmart's executive vice president and CFO. A year ago, Walmart posted profit of $1.03 a share from continuing operations in the period.
Walmart also projects U.S. comparable-store sales to grow by 1.0% in the second quarter, and Sam's Club -- without fuel -- to be "slightly positive" for the 13-week period that runs through July 29, Biggs added.
Fiscal first-quarter earnings per share were 98 cents, roughly 11% higher than estimates. On a constant currency basis, total revenue for the quarter came in at $119.4 billion, an increase of 4.0% over the same period a year ago.
In the U.S., Walmart posted comparable-store sales gains for the seventh consecutive quarter, up 1.0% amid a sixth straight quarter of positive traffic. Neighborhood Market comparable sales grew by about 7.1%.
"We are pleased to see the U.S. comp result, strong performance outside the U.S., membership trends in Sam's Club and earnings-per-share results versus guidance," Doug McMillon, Walmart's president and CEO, said in a statement.
He added that the company is focused on building digital commerce capability, and said improved inventories contributed to strong cash flow. "We are off to a good start for the year," he said.
