Overseas activities keep Walmart's growth alive

Mixed feelings for Walmart: the world's largest supermarket chain saw its worldwide profit and turnover rise, but its American sales went down – for the ninth quarter in a row.

International sales went up 16.2% to 30.1 billion dollar, but in home market USA like-for-like sales went down 0.9%. Walmart's total turnover went up 5.5% to 108.6 billion dollar (75.6 billion euro).

US economy poses problems

The US are still accounting for 62% of worldwide turnover, but the economy in the States poses a serious problem: unemployment figures are high and consumer confidence is low, meaning that consumers watch their expenses. A recent survey showed that Americans no longer see Walmart as the cheapest supermarket in the US – a perception change that is very unwelcome for the market leader in these times of crisis.

Walmart did realise a profit growth of 2.1% in the US through cost cuts and improved efficiency, but its international profit growth was a lot higher – peaking at +5.7% or 3.8 billion dollar. Profit per share was 1.09 dollar – 12 cents higher than the year before and 1 cent higher than what analysts had expected. For the whole financial year, Walmart raised its profit forecasts to 4.51 euro per share, significantly more than the 4.18 of last year.



Mixed feelings for Walmart: the world's largest supermarket chain saw its worldwide profit and turnover rise, but its American sales went down – for the ninth quarter in a row.

International sales went up 16.2% to 30.1 billion dollar, but in home market USA like-for-like sales went down 0.9%. Walmart's total turnover went up 5.5% to 108.6 billion dollar (75.6 billion euro).

US economy poses problems

The US are still accounting for 62% of worldwide turnover, but the economy in the States poses a serious problem: unemployment figures are high and consumer confidence is low, meaning that consumers watch their expenses. A recent survey showed that Americans no longer see Walmart as the cheapest supermarket in the US – a perception change that is very unwelcome for the market leader in these times of crisis.

Walmart did realise a profit growth of 2.1% in the US through cost cuts and improved efficiency, but its international profit growth was a lot higher – peaking at +5.7% or 3.8 billion dollar. Profit per share was 1.09 dollar – 12 cents higher than the year before and 1 cent higher than what analysts had expected. For the whole financial year, Walmart raised its profit forecasts to 4.51 euro per share, significantly more than the 4.18 of last year.



Tags: