Page 25 - ARUBA TODAY

BUSINESS Wednesday 19 February 2020
A25

A rare miss for Walmart

to end the year

By ANNE D'INNOCENZIO the next year. But execu-
AP Retail Writer tives believe the disruption
NEW YORK (AP) — Walmart is likely to shave a few pen-
reported disappointing nies off earnings per share
fourth-quarter profits and in the current quarter. One
sales after a sluggish and blessing: Walmart empha-
shortened holiday shop- sized that two-thirds of the
ping season. items it sells — mostly food
Violent social protests in — are sourced from the U.S.
Chile, where there are hun- The remainder comes from
dreds of Walmart stores, a variety of countries like
cut into international sales. Mexico, China and other
Walmart also delivered a regions of Asia.
weak profit forecast for the Walmart and Target have
year and a rare quarterly stood out among retailers,
miss, its worst in about five having ramped up deliver-
years. ies and other convenienc-
"We started and finished es for customers, but Target
the quarter with momen- Corp. also struggled during
tum, while sales leading the holiday due to weak
up to Christmas in our U.S. sales of toys and electron-
stores were a little softer ics.
than expected," said CEO Walmart continued to pro-
Doug McMillon. duce strong results from its
Walmart is the first ma- grocery aisles, helped by
jor retailer to report fiscal expanded online delivery.
fourth-quarter results. The It now has 3,200 locations
performance underscores for grocery pickup and
a multitude of challenges 1,600 locations that offer
that retailers faced this holi- grocery delivery. Last fall, This June 25, 2019, file photo shows the entrance to a Walmart in Pittsburgh.
day season as they try to it launched "Delivery Unlim- Associated Press
better compete with on- ited," which costs $98 annu-
line juggernaut Amazon. ally and $12.95 monthly for year, " said Neil Saunders, were expecting $1.44 per fiscal year 2021 of $2.16 per
The discounter said that unlimited grocery delivery. managing director of Glo- share, according to Fact- share, an increase from the
U.S. sales at stores opened It also launched a delivery balData Retail, in a report Set. $2.12 per share last year.
at least 12 months rose just service in three cities, giv- published Tuesday. But he Revenue rose 2.1% to $140.6 The company will pay the
1.9% for the holiday quarter, ing customers the option added that Walmart re- billion, shy of the $141.5 bil- dividend in quarterly install-
a slowdown from the previ- to let its own delivery per- mains in a "good place." lion Wall Street was looking ments of 54 cents per share.
ous period. The company son put purchases directly "It is well managed, has for. Walmart Inc. expects annu-
joined other retailers who into the refrigerator when clear plans and plenty of Walmart said three quar- al per-share earnings of be-
reported disappointing hol- they're not home. determination," he said. ters of its nearly 400 stores in tween $5 and $5.15, short
iday sales last month. Walmart's same-store sales Moody's lead Walmart an- Chile were badly damaged of the $5.21 that industry
It was the shortest holiday of 1.9% this quarter were alyst Charlie O'Shea said during violent anti-govern- analysts had projected.
shopping season since well below the 3.2% in- that when one looks at the ment protests that began In afternoon trading, shares
2013, leaving retailers crease in the previous pe- previous quarters, "Walmart in October. Demonstrations rose a little more than 1%,
scrambling to figure out riod. It was, however, the set the bar high." began after an increase in or $1.49, to $119.38.q
how to get people thinking 22nd consecutive quarter "It was just a weird quarter," the subway fare, but have
about the holidays sooner. of same-store sales gains. O'Shea said. grown to encompass griev-
The ongoing trade war with The company blamed the Net income was $4.14 bil- ances about pensions, ed-
China has raised costs for shortfall on several mer- lion, or $1.45 per share, in ucation, health care and
most and now, a new virus chandising mistakes like the quarter ended Jan. 31. other issues.
in China is hitting a huge too much clothing that was That compares with $3.69 Walmart does does not ex-
customer base as well as seasonal and low-priced. billion, or $1.27 per share, pect the situation in Chile
manufacturing facilities Online sales in the U.S. rose in the same period a year to normalize this year.
and supply chains. 35%, weaker than the 41% ago. Adjusted earnings per Separately, Walmart ap-
The challenges come on increase booked in the share was $1.38. Analysts proved a cash dividend for
the back of a slew of bank- previous quarter. For the
ruptcies as retailers at- year, U.S. online sales rose
tempt to satisfy a customer 37%. For the current fiscal
who has gone increasingly year, the company's online
online, one who demands sales should be up 30%, to
speedy delivery and re- $50 billion. Walmart said
turns. that losses in its U.S. e-com-
Walmart, which operates merce division will either
more than 400 stores in level off or decline for the
China, didn't include the current year.
potential impact of coro- "It is fair to say that unlike
navirus in its forecast be- past quarters Walmart was
cause of uncertainty over not firing on all cylinders
how it will play out over during the last part of the