Walmart profit alert despite turnover growth

Walmart profit alert despite turnover growth

Despite a second quarter 2.6 % turnover growth, Walmart - the world's largest department store group - has lowered its profit forecast for the remainder of the year, partially because of e-commerce investments.

Like-for-like turnover level

Walmart has managed a second quarter 120.1 billion dollar turnover (some 89.8 billion euro), 3.3 billion dollar more than in the same period last year. Its like-for-like turnover remained level however, while its quarterly profit grew 0.6 % to 4.1 billion dollars.

 

The world's largest distributor has at the same time lowered its profit forecast: up until now, the group had expected a 5.1 to 5.45 dollar profit per share, but it has now lowered that forecast to a 4.9 - 5.15 dollar range.

 

E-commerce up 24 %

Walmart, based out of Bentonville (Arkansas), has given three reasons for its profit alert: rising employee health care costs, higher tax rate and huge investments in the expansion of its e-commerce activities.

 

It is no surprise that the company is focusing on e-commerce as internet sales grew 24 % in the past quarter (at equal exchange rates), with "double-digit growth" in markets like the United States, the United Kingdom, China and Brazil.

Questions or comments? Please feel free to contact the editors


Arket Brussels opens: discover H&M's latest concept

14/09/2017

On Friday 15 September, H&M Group’s new store formula opens its doors on the Guldenvlieslaan in Brussels. The press got a sneak preview and discovered a surprising mixture of fashion, interior design and food. 

Nordstrom opens store without storage

13/09/2017

American fashion chain Nordstrom is to trial a new store formula in Los Angeles next month, in which customers will only be able to get advice and try out clothing. Purchases can be picked up at the store at a later date.

Primark benefits from weaker British economy

12/09/2017

Irish fashion chain Primark takes full advantage of the weak British economy, which prompted its parent company AB Foods to adjust its full-year forecast. The chain will also continue its expansion plans.

Participatiemaatschappij Vlaanderen invests in FNG

11/09/2017

Government investment fund Participatiemaatschappij Vlaanderen (PMV) will invest 15 million euro in fashion group FNG in return for 5 % of its shares. The money will go towards international expansion.

Gap Inc will focus on Old Navy and Athleta

08/09/2017

American fashion company Gap will alter its internal strategy and turn its attention to Old Navy and Athleta. Gap and Banana Republic, which both received the most attention up until now, will have to step aside.

Global Fashion Group cuts losses

08/09/2017

Global Fashion Group, the fashion group founded by investment group Kinnevik and Rocket Internet, managed to lower its losses even more in the second quarter. On top of that, turnover grew more than 25 %.

Back to top