Wal-Mart Stores Inc. reported Thursday that its fiscal third-quarter earnings slipped 1.5 percent but it eked out its first gain in nearly two years in a key revenue measure for its U.S. business.
The Bentonville-based retailer posted earnings of $3.71 billion, or $1.15 per share, down 1.5 percent from $3.74 billion, or $1.14 per share, the year before.
Meanwhile, the company issued a fourth-quarter profit outlook that missed Wall Street expectations because of expected fierce holiday discounting.
Wal-Mart posted revenue of $119 billion in the period, up almost 2.9 percent from $115.7 billion in the previous third quarter, and beating Wall Street forecasts. Analysts expected $118.35 billion, according to Zacks.
Wal-Mart's U.S. discount division, which accounts for 60 percent of the company's total sales, posted a 0.5 percent increase in revenue at stores open at least a year. That was the first increase in seven quarters and came despite a continued decline in store traffic.
Wal-Mart's overall U.S. business eked out a 0.5 percent increase, including a 0.4 percent increase at Sam's Club division.
Wal-Mart said that it expects earnings per share to be in the range of $1.46 to $1.56, which includes the negative impact of closing underperforming stores in Japan. Analysts had expected $1.57 per share.
The company expects full-year earnings to be $4.92 to $5.02 per share. Analysts expect $4.99 per share, according to FactSet.
To win its share of Christmas dollars, Wal-Mart announced an aggressive plan that includes free shipping on the top 100 items and price cuts on 20,000 items. Starting Friday, Wal-Mart will start to match its online prices with Amazon. Previously, it matched prices only with local stores.
"Being the price leader is an ongoing priority for us and a commitment to our business," said Doug McMillon, who took over as CEO in February. "And with every year, that is even more important during the holiday season."
Read Friday’s Arkansas Democrat-Gazette for full details.
Information for this article was contributed by Anne D'Innocenzio The Associated Press and by Katie Doherty of Arkansas Online.