The earnings miss and the dismal online sales pushed Wal-Mart shares down by more than 10% on the day. The midpoint of the guidance is below the Zacks Consensus Estimate of $4.91. same-store sales to grow at least 2% and earnings per share in the range of $4.75-$5.00. This is because Wal-Mart struggled to manage its online inventory, amassing holiday-related items such as electronics, toys and gifts and falling short of stocking everyday items (read: Will Wal-Mart ETFs Outdo Amazon in Last-Minute Shopping?).ĭespite the slowdown in e-commerce sales, the discount chain is still optimistic as it reiterated its prior guidance of 40% online sales growth for the current fiscal. Online sales grew just 23% year over year, a massive drop from 50% growth seen in the third quarter and 29% growth in the year-ago quarter. Though same-store sales grew for the fourteenth consecutive quarter, climbing 2.6% year over year, slowdown in e-commerce sales growth was a major disappointment. ![]() Revenues increased 4.1% year over year to $136.3 billion and were ahead of the consensus mark of $135 billion. This dampened investors’ spirit, leading to the steepest share decline in three decades.Įarnings per share came in at $1.33, missing the Zacks Consensus Estimate by 3 cents but improving from the year-ago earnings of $1.36. ![]() The mega retailer’s nine-quarter long positive earnings surprise streak came to an end as it recorded slower growth in online sales. Wal-Mart WMT reported lackluster fourth-quarter fiscal 2018 results.
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