Wal-Mart Stores reported fiscal second quarter net income of $4.093 billion, or $1.21 per share. The earnings, reported early Thursday (Aug. 14), matched the consensus estimate of $1.21 per share, and the retailer’s quarterly revenue of $120.125 billion beat the consensus estimate of $119 billion.
The company also lowered its full year earnings guidance from a range of $5.10-$5.45 per share to $4.90-$5.15 per share based on higher than expected healthcare costs and “incremental investments” in its e-commerce segments.
Same-store comparable sales during the quarter were flat at Walmart U.S. and at Sam’s Club. Walmart U.S. same-store traffic was down 1.1% with the average ticket price up 1.1%. At Sam’s Club, the traffic was up 0.3% and the average ticket was down 0.3%.
“I’m pleased with our solid earnings per share performance,” Doug McMillon, Wal-Mart Stores president and CEO, said in the earnings report. “As it relates to the positives from the quarter, I’m encouraged by the performance of our International business, our Neighborhood Market sales in the U.S. and by our e-commerce growth. As it relates to our challenges in the quarter, we wanted to see stronger comps in Walmart U.S. and Sam’s Club, but both reported flat comp sales. Stronger sales in the U.S. businesses would’ve also helped our profit performance.”
The quarterly income of $4.093 billion was just slightly better than the $4.069 billion in the same period of 2013. Total revenue of $120.125 billion was up 2.82% compared to the same quarter of 2013.
For Wal-Mart’s first six fiscal months, net income was $7.686 billion, down from the $7.853 billion in the same period of 2013. Total revenue in the six-months is $235.085 billion, up 1.8% compared to the same 2013 period.
The company said e-commerce sales helped comparable sales by 0.3%. Such sales include online purchases that are picked up by the customer at a store site.
“Our investments in e-commerce and mobile are very important, as the lines between digital and physical retail continue to blur. Our customers expect a seamless experience, and we’re working to deliver that for them around the world,” McMillon said in the statement.
Wal-Mart shares (NYSE: WMT) closed Wednesday at $74.03. During the past 52 weeks the share price has ranged from an $81.37 high to a $71.51 low.
The City Wire will update this story following the earnings call report from Wal-Mart execs.