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.