Wal-Mart Stores Inc. (NYSE:WMT) Stores sales surged during holiday quarter as rivals struggled

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.

Nestle is ready for any kind of opportunity for mergers or acquisitions, claims CEO

While announcing the fiscal results Nestlé’s CEO said in a statement that, if the company sees any break of mergers or acquisitions and if it makes “strategic sense” for Nestle, it plans to go for it without hesitation.

“When it comes to M&A, I think Nestle is no stranger to that,” Nestle CEO Ulf Mark Schneider, said.

“In fact some of the most strident deals of the 1980s that actually put the company on the map where it is today, as the world’s largest food and Beverage Company, those were coming from here.”

Mr. Schneider recently this year appointed as Nestle’s CEO, after working as a CEO at Fresenius Group, a health care company that’s gone through many deals during his 13-year tenure.

Considering the health aspect and Schneider’s past work, the CEO revealed Nestle had by this time made a lot of development in advancement of its nutritional profile in food and beverage in the recent times.

But mergers and acquisitions at Nestle has been relatively quiet in recent years, Schneider said the group would look at potential deals “when the time is right.”

“I’m no stranger to deal-making, but I think it’s basically a continuation of what we’ve done before and that is when there are deal opportunities that make strategic sense, we’ll be there.”

In its fiscal results on Thursday, Nestle posted 2016 sales of 89.5 billion Swiss francs or $89.4 billion.

The food and beverage giants’ net profit came in at 8.5 billion Swiss francs that was less than average analyst’s predictions, with the group saying that one major factor which predominantly influenced the figure was a one-off non-cash alteration to deferred taxes.

For the future, Schneider said that the start of 2017 was expected to be harder than the end of the year, especially with the present level of unpredictability perceived across the globe.