Wal-Mart Q2 profit rises, but sales miss Street
Bentonville, Ark. -- Wal-Mart Stores reported Thursday that net income for the second quarter rose 5.7% to $4.02 billion, compared with $3.8 billion in the year-ago period. Total revenue increased 4.5% to $114.3 billion, but missed Wall Street’s forecasted $115.8 billion in revenue.
Same-store sales in the quarter advanced 2.2%, edging Wall Street expectations but trailing last quarter’s 2.6% same-store sales gain.
Price-cutting in the challenging economy has impacted the world’s largest retailer. CEO Mike Duke told investors that U.S. consumers will continue to shop for the lowest prices.
"Given continuing economic pressures, we believe that our price leadership and value are growing in importance to customers across income levels," Duke said in a statement.
Sales in the U.S. rose 3.8% to $67.35 in the quarter. For the overall U.S. business, same-store sales rose 2.5%, including a 4.7% increase at Sam's Club warehouses. Analysts had expected 2.6%.
Wal-Mart has raised its profit outlook for the year, although it said it would delay store expansion plans in Mexico, as it continues to battle allegations of bribery there.