Tags: Wal-Mart | consumers | groceries | earnings

Wal-Mart Profit Falls 5 Percent as Harsh Winter Deters Shoppers

Thursday, 15 May 2014 08:21 AM

Wal-Mart Stores Inc. reported a 5 percent drop in quarterly profit as a severe winter in the United States kept shoppers from its stores.

Shares of the world's largest retailer were down 3 percent before the bell on Thursday.

Wal-Mart, which gets more than half its sales from groceries, said sales at U.S. stores open for at least a year were relatively flat during the quarter.

A colder-than-usual winter led to a 1.4 percent decline in customer visits, while same-store sales slipped less than 1 percent, the company said.

"Like other retailers in the United States, the unseasonably cold and disruptive weather negatively impacted U.S. sales and drove operating expenses higher than expected," Chief Executive Doug McMillon said in a statement.

Net sales rose marginally to $114.2 billion in the first quarter ended April 30.

The net income attributable to Wal-Mart fell 5 percent to $3.59 billion, or $1.11 a share, from $3.78 billion, or $1.14 a share, a year earlier.

The company earned $1.10 a share from continuing operations.

Adverse winter weather reduced earnings by 3 cents a share.

The company estimated second-quarter earnings of $1.15-$1.25 a share from continuing operations.

© 2017 Thomson/Reuters. All rights reserved.

   
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Wal-Mart Stores Inc. reported a 5 percent drop in quarterly profit as a severe winter in the United States kept shoppers from its stores.
Wal-Mart, consumers, groceries, earnings
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2014-21-15
Thursday, 15 May 2014 08:21 AM
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