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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you can plainly see they are doing a reset, the mod sheets are hanging right in you face !
it's no wonder that walmart has run out of excuses,congress made a run on them
Sure their prices are reasonable in some things, but prices aren't everything. I had a friend who worked there who told me about all the sexual harassment , the encouragement to get co-workers fired and the encouragement to treat customers like sh*t in order to get them in and out as fast as possible. They quit and found a better paying job.
I have hated them since day 1 until...........
They just put in 10 self-check-out stations in and they WORK!
Checking out in record time is kinda cool. The average wait in line for me went from 15 minutes to ZERO.
I'm all about speed these days. Whod'a thunk?
Ok when Wal-Mart started out the products where made In the USA! Now its made in China! They have 20 check out lines and only run 4 or 5! You go to buy something that you need an associate for and you have to wait 30 to 40 minutes just to get started on the sales process which takes another 30 to 40 minutes! You have to locate what you want without much help from the staff! Not all of them are stupid, but they out number the smart ones! They did away with lay-a-way except for Christmas! and replaced it with a credit card which means you pay more for the same cheap product! They do not stock a variety they cater to the local majority! If you see it today better buy it because chances are they only ordered two and one is already sold! If you come back tomorrow the other maybe gone, and these are the few items that people want! Sam is probably pissed about how his store was turned into a joke!
Greed ,and big $$$$ profits for no service and $*** products.
I am originally from one of The past Soviet Union satellite countries ,been under Kremlin line of life and socialist propaganda.Wall mart loking very similar and close today to THE GOVERNMENT stores we used to have and no any other store to choose from. The Communist past is coming here on American soil .
Do not shoppe there ,do not buy China goods,and the market will do the miracle by themselves!!!
One day we may experience here in US the tragedy of human beings treaded by government. Who knows?
Every time I drive up to the parking lot I say "I hate coming to this zoo". Hard to get in and out, hard to get checked out, shelves out of stock, just an overall aggravation. Our town hasn't built alternatives yet, but I think Wal-Mart has kept them out so far. I do believe that is fixing to change with the economy starting to pick up.
Wal-Mart missed another profit target? Oh, boo-hoo!
Maybe they would do better if they didn't sell the cheapest crap made in sweat shop factories.
After Sam Walton and his predatory tactics killed off the Main Street Mom & Pop stores, his spawn running the company has continued to built bad karma. Wal-Mart deserves this!
Shop Local. Shop Small. Keep the money in your community!
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