Walmart enters holiday season on low note
Walmart (WMT) shares tumbled Thursday after the company reported its third-quarter revenue edged upward but profit slipped as the big-box retailer prepares for the crucial holiday shopping season.
The company posted net income of $3 billion for the quarter ended Oct. 31, down 8.2% from a year earlier and matching S&P Global Market Intelligence estimates.
Total revenue increased 0.7% to $118.2 billion. Sales at U.S. stores open at least a year rose 1.2%.
"We delivered another solid quarter and are pleased with the continued momentum in the business," CEO Doug McMillon said in a pre-recorded conference call, according to a transcript made available to investors and the media.
Walmart shares were down 3.6% to $68.76 in afternoon trading.
In the increasingly critical world of online sales, Walmart posted a 20.6% increase when excluding the effects of currency rates. The company's results included its $3 billion acquisition of online retailer Jet.com for the first time.
The company's international segment weighed on revenue because of the negative effects of currency rates, as the unit posted a 4.8% sales decline to $28.4 billion. Excluding currency effects, net sales in the international division would have risen 2.4% to $30.5 billion.
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