Wal-Mart sales below forecasts
Disappointing first quarter as weather hits performance
Wal-Mart has reported first quarter results below forecasts as poor weather and high fuel prices hit its US sales.
In the three months to the end of April, net sales were $70.9bn, an increase of 9.5 per cent over the same period last year. Net income for the quarter was $2.5bn, an increase of 13.6 per cent. Despite the sales growth, the world’s biggest retailer acknowledged that the figures were below its internal forecasts.
Chief executive officer Lee Scott said: “We achieved record results in the quarter. Yet with higher gasoline prices and a cooler and wetter spring than normal, we missed our plan. We are making the necessary adjustments and I anticipate better results in the second half of the year.”
In a recorded message, he told journalists: “Our results were not up to Wal-Mart standards,” adding “The biggest unknown is the impact of gasoline prices on our customer base. If oil prices stay at the current level or hopefully go lower, we would see better sales momentum.”
By division, Wal-Mart Stores in the US saw sales of $47.6bn, up 9.3 per cent, while the Sam’s Club warehouse chain reported sale of $9.1bn, up 5.9 per cent. International sales, including Asda in the UK, grew by 9.5 per cent to $70.9bn.
