Walmart on Tuesday reported earnings that missed analysts’ expectations for the holiday period, though revenue and same-store sales came in better than expected.
Shares of the big-box retailer fell more than 3 percent in premarket trading following the announcement.
Here’s how Walmart did compared with what Wall Street was expecting, based on a Thomson Reuters survey:
- Earnings per share: $1.33, adjusted, vs. $1.37 expected
- Revenue: $136.3 billion vs. $134.9 billion expected
- U.S. same-store sales: an increase of 2.6 percent vs. a 2.2 percent rise expected
Total sales climbed 4.1 percent from a year ago to $136.3 billion.
Walmart’s same-store sales in the U.S. were up 2.6 percent, an increase for the 14th consecutive quarter, as online sales grew just 23 percent during the period — slower than the prior quarter’s 50 percent jump.
Walmart has also set its fiscal 2019 earnings per share forecast at between $4.75 and $5.00. Same-store sales at Walmart U.S. stores are expected to climb at least 2 percent, while those at Sam’s Club locations could rise as much as 4 percent. E-commerce sales are forecast to grow roughly 40 percent in the coming year.
The Arkansas-based retailer has endured a number of changes to its structure, merchandise mix and leadership hierarchy of late, which are viewed as a way for Walmart to keep pace with Amazon and a shift of U.S. consumers toward online shopping.
For Walmart, news of starting wage increases and bonuses in January was abruptly followed news of Sam’s Club store closures, which was followed by news of layoffs at its headquarters and cutbacks of store co-managers. The company is meanwhile remodeling its stores across the U.S. to focus more on grocery and online order fulfillment.
Walmart is also preparing to later this year roll out a revamped website, with a focus on fashion and home goods. The company will partner with Lord & Taylor to sell the Hudson’s Bay-owned chain’s merchandise on Walmart.com, as it continues to expand its offerings on Jet.com (which include Uniquely J, Modcloth and Bonobos).
As of Friday’s market close, Walmart shares have risen about 51 percent from a year ago.
