Wal-Mart Misses First Quarter Profit

The large US retailer, Wal-Mart, missed its first quarter earnings with slower sales and currency issues. Analyst were looking for profit of $1.05 a share but the company was only able to report $1.03 a share. Sales were also light with both Wal-Mart and Sam’s Wholesale seeing a slowing a sales growth. International revenue struggled due to the strong US currency in comparison to the devaluation of almost every other currency. $14 billion in sales is to be lost this year from currency issues, that equates to 13 cents a year in profit.

Wal-mart shares have declined 11% this year and moved lower 4.4% after the close when the earnings report was released. CEO Doug McMillon is cutting costs and increasing efficiency while at the same time increase the wages of workers in America. They increased half a million worker’s hourly wage to $9.00 an hour. They plan to increase those wages again next year to $10.00. Revenue was reported at $114.8 billion compared with an estimated $116.2 billion. The company did admit that investments in ecommerce, wages, and training also limited the upside the company could see in profit going forward.

Walmart earnings disappoint: what does this mean for America?