Wal-Mart falls as sales miss expectations, announces $9 hourly wage plans
Wal-Mart Stores shares fell more than 3% on Thursday, after the company’s fourth quarter sales rose but missed expectations.
Dow Jones I.A.
38,675.68
04:30 15/10/20
Wal-Mart Stores Inc.
$59.82
11:09 03/05/24
The retailer revealed sales rose 1.4% year-on-year to $131.6bn compared with consensus forecast of $132.5bn, while profit for the period rose 12.2% to $4.97bn, while earnings excluding exceptional items rose 1.5% to $1.61 a share, above estimates of $1.54.
However, Wal-Mart’s forecasts for the first quarter of 2015 are likely to disappoint investors as the group said it expects first quarter profit to be between 95 cents and $1.10 a share against estimates of $1.14.
The retail giant’s full year outlook was also lower than expected, with earnings forecast to be between $4.70 and $5.05 per share against expectations of $5.20.
On Thursday, Wal-Mart announced that it will raise the salary of about 500,000 full-time and part-time employees to ensure hourly employees receive at least $9 per hour, $1.75 above the US minimum wage.
The group added that all of its current employees will earn at least $10 per hour by 1 February next year.
Our people make the difference. It’s time we make a difference for them. http://t.co/bnqgdXEKYf
— Walmart (@Walmart) February 19, 2015
The retailer is also planning to leverage the knowledge of its UK arm Asda in online shopping, after asking Asda experts to pull together teams that will support growth in sourcing and online grocery shopping across its international markets.
Asda president and chief executive Andy Clarke described the development as “a massive recognition of the contribution, knowledge and experience that sit in our teams in the UK.”
Wal-Mart shares were down 2.67% to $83.99 at 10:28 in New York on Thursday.