Giant-retailer Wal-Mart Stores Inc. (NYSE:WMT) announced its quarterly results as it announced strong sales over the coveted holiday-season, a noticeable contrast with the weak figures by most of its key rivals.
On Tuesday February 21, 2017, Wal-Mart Stores Inc. (NYSE:WMT) announced that sales in stores open at least one year surged 1.8% in the latest 3 month period, the 10th successive quarter of increases. More shoppers came to its stores and even spent more when they did. But the power of the company’s U.S. store business endures to come at the cost of profits, which dropped 18% in the quarter ended Jan. 31.
The company has been heavily investing to rise U.S. store worker wages, lower charges and inflate e-commerce sales to contest with the likes of Amazon.com Inc.
Although, Company’s worldwide online sales growth slowed in contrast with the previous quarter. Online sales surged 16% comprising the first full-quarter of sales from Jet.com Inc., which Wal-Mart acquired in September. In the previous quarter e-commerce sales rose 21%.
Wal-Mart Stores Inc. (NYSE:WMT) U.S. store modifications have been quite prolific in a phase when many retailers tethered to large store footprints are struggling, tested by shoppers falling to less-profitable online buying and discount stores offering low prices.
Investors have become careful of the retail market after companies like Target, Macy’s and Kohl’s Corp announced weak holiday sales.
Retailer’s comparable-store sales dropped 2.1% in the most recent quarter and its profit plunged 13%. Macy’s received $673 million from selling real estate and said that it plans to keep exploring options for its properties.
Over all Wal-Mart Stores (WMT) posted a profit of $3.76 billion, or $1.22 a share, in contrast with $4.57 billion, or $1.43 a share, year over year.