Walmart Stores Inc. cut its
annual profit and revenue outlook as the world's largest retailer continues to deal with a tough economy at home and abroad.
Walmart also reported second-quarter results on Thursday that missed Wall Street estimates. The company's stock fell nearly 2 per cent in pre-market trading.
Walmart is considered an economic bellwether because the retailer accounts for nearly 10 percent of nonautomotive retail spending in the US.
While jobs are easier to get and the turnaround in the housing market is gaining momentum, the improvements have not been enough to sustain spending for most Americans, who are juggling with weak wage gains and higher costs of living.
"The retail environment remains challenging in the US.
and our international markets, as customers are cautious in their spending," Wal-Mart Chief Financial Officer Charles Holley said in a statement.
The US-based retailer said its second-quarter profit rose 1.3 per cent to 4.07 billion, or 1.24 per share, for the three months ended July 31. That compares with 4.02 billion, or 1.18 per share, a year earlier.
Net sales rose 2.4 per cent to 116.2 billion. That figure excludes membership fees from its Sam's Club division.
Analysts expected earnings of 1.25 per share on revenue of 118.09 billion.
Revenue at stores open at least a year at Walmart's namesake business fell 0.3 per cent. That's considered an important measure of a retailer's performance. Analysts were expecting a 0.7 per cent gain.
The decline marks the second straight quarter of declines for the Walmart's US namesake stores after six straight quarters of increases. US Walmart stores account for 59 per cent of the company's total sales.
Walmart said it now expects total sales to rise 2 to 3 per cent for the full year. The company's previous forecast was for growth of 5 per cent to 6 per cent.
The company also cut its full-year profit outlook to between 5.10 and 5.30 per share, from between 5.20 and 5.40 per share.
Analysts were expecting 5.29 per share.
Walmart's stock fell nearly 2 per cent, or 1.47, to 74.93 in premarket trading.
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