Wal-Mart is running out of excuses
It keeps blaming disappointing results on things like delayed tax refunds, even though its rivals are doing better despite the same headwinds.
Among Wal-Mart's lackluster data points, first-quarter net income rose 1.1% to $3.78 billion, or $1.14 per share, versus $3.74 billion, or $1.10 per share, a year earlier. Sales increased 1% to $113.4 billion. Analysts surveyed by Bloomberg expected profit of $1.14 per share on revenue of $116.1 billion. U.S. comparable-store sales, a key retail metric measuring revenue at stores open at least a year, fell 1.4%.
The company forecast a profit in the current quarter of $1.22 to $1.27 per share, below the $1.29 analysts had expected.
As it has done before, Wal-Mart attributed its mediocre performance to a delay in the Internal Revenue Service issuing income tax refunds, an increase in the payroll tax and less grocery inflation. However, Wal-Mart's competitors are facing these same problems and are faring better. That's only heightening the pressure on Duke to improve the company's financial performance.
Kohl's (KSS), for one, reported better-than-expected earnings, and its stock is moving in the opposite direction of Wal-Mart's. It expects comparable-store sales to increase as much as 2% in the current quarter after a 1.9% decline in the last quarter. TJX (TJX), the parent company of TJ Maxx, saw its same-store sales rise 8% in the four-week period ending May 4. But it expects its growth rate to slow in the current quarter to a range of 1% to 2%, which disappointed Wall Street.
Wal-Mart does see better times ahead. It says U.S. same-store sales will jump as much as 2% in the current quarter. If the discount retail colossus can't meet those modest expectations, Wall Street will not be pleased.
Jonathan Berr does not own shares of the listed stocks. Follow him on Twitter @jdberr.
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Will not shop at Wal-Mart any longer.
To me we need to stop shopping at these large chain places and bring back the mom and pops stores this is the only way to bring America back.
Large chains kill the economy and we need to boycott them all.
Lets bring back the mom and pops stores.
Who is with me..
One word... "Walmartians". The reasons my family will never shop there again are as follows (if Walmart cares to know)
1. You cram the isles with **** I can find myself on the shelf. I have never made an impulse buy after crashing into an island of merchandise place strategically in my way so I can't get through.
2. The employees always look like they are on the verge of suicide. (& seem aggravated I am now checking out and they have to ring up the items).
3. They have zero dress code for shopping at their store! The general public that is allowed to enter and shop while not dressed appropriate for even a backyard swim-barbeque. I don't need to be attempting to explain to my toddler why the 600lb woman, with her boobs literally hanging and swinging out and about, is riding in a store provided powered wheelchair with 4 or more kids riding on the back (screaming, shoeless, unkept and seemingly always in this condition). I can't say what I want to say ....
i hate walmart,nobody knows where anything is,if you ask they tell you its not my department or im my lunch break,happens here all the time,i rather pay more and go somewhere else
spoiled food, narrow ailses, empty shelves, over-worked, underpaid employees...
The real problem is those Third World suppliers. The damned slave labor wage and working condition costs are beginning to rise, and those aren't circumstances that will keep a Wal-Mart open.
I can hear the head of Wal-Mart, all frustrated and mystified, bellowing at the next board meeting, "What part of slave labor don't those people understand!?"
I have the hardest time going to WalMart- no cashiers, customer service area cannot help you find anything- and every time I go in for a product it has been moved..... I go to Target and grocery stores - now! My time is too precious to shop at WalMart for over an hour looking for products.
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