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Walmart said it expects to earn between $ 4.65 and $ 4.80 per share in the fiscal year ended Jan. 31, down from $ 4.90 to $ 5.05 per share.
Photo:
Mike Blake / Reuters
Walmart
Inc.
WMT -1.04%
lowered its profit targets and announced that it would open only 10 new stores in the United States in the next fiscal year, with the world's largest retailer focusing on online shopping.
The profit reduction target for the current year reflects the acquisition of Indian e-commerce company Flipkart, which Walmart disbursed for $ 16 billion earlier this year. At the time, Walmart said that the deal was a long-term bet in a fast-growing market that would have the effect of reducing profits.
The world's largest retailer said it hoped to earn between $ 4.65 and $ 4.80 per share in the fiscal year ended Jan. 31, down from $ 4.90 to $ 5.05 per share. At the time of the transaction, Walmart had announced earnings per share of 25 cents to 30 cents for the current year and 60 cents for the next fiscal year.
The agreement, the largest in Walmart's history, is part of an effort to expand its Web business. The company said Tuesday expecting a 35% increase in online sales, which still account for only a small portion of its revenue, next year, down compared to the 40% expected for the current year. Next year, sales in existing US stores are expected to increase 2.5% to 3%, the company said.
In the second quarter, Walmart's quarterly sales accelerated at the fastest pace in more than a decade.
Walmart shares fell slightly in pre-sale transactions, down 1% to $ 93.82.
Write to Bowdeya Tweh at [email protected]
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