Walmart Q3 sales miss Street, profit rises year-over-year
Bentonville, Ark. -- Wal-Mart Stores Inc. reported Thursday net income of $3.64 billion for the quarter ended Oct. 31, up from $3.34 billion in the year-ago period.
Sales rose 3.4% to $113.20 billion, as U.S. sales beat internal expectations but overall missed Wall Street’s expected $114.96 in revenue.
Wal-Mart U.S. saw same-store sales rise 1.5%, marking the fifth consecutive quarter of same-store sales growth after nine straight quarterly declines. At Sam’s Club, same-store sales rose 2.7%, excluding fuel.
The Walmart U.S. unit forecast a 1% to 3% increase in same-store sales for the fourth quarter, when it will be helped by customers' final payments and pick-ups of third-quarter layaway items.
"Current macroeconomic conditions continue to pressure our customers," Charles Holley, CFO, said. "The holiday season is predicted to be very competitive, but we are very well prepared to deliver on the value and low prices our customers expect."
International sales rose 2.4% to $33.16 billion, but sales in Japan fell 1.8%. “Across all of our markets, we are seeing the same price consciousness as we do in the United States,” said Mike Duke, Wal-Mart Stores president and CEO.
In related news, Wal-Mart revealed Thursday it is investigating allegations of potential FCPA violations in a number of countries, including Brazil, China and India.