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The challenging second quarter results and third quarter guidance revisions Wal-Mart Stores reported this morning are likely to rattle Wall Street as Macy’s unexpected stumble unnerved the market Wednesday.
Wal-Mart on Thursday reported a higher second-quarter profit, as net sales grew 2.4 percent to $116.2 in the 13-week period ended July 26, from $113.3 in last year’s second quarter. Total revenue was $116.9 billion, a 2.3 percent increase over $114.2 billion in last year’s period.
Earnings per share were $1.24, a 5.1 percent increase over last year’s $1.18. However, EPS and revenues missed analysts’ expectations. Wal-Mart Stores chairman Mike Duke said in a recorded call that the retailer’s U.S. and international retail environments continue to be challenging with customers cautious about spending.
U.S. comp-store sales in the quarter declined 0.3 percent.
Wal-Mart substantially cut its third-quarter guidance for consolidated net sales to a range of 2 to 3 percent from its previous guidance of 5 to 6 percent.
Food, consumables, apparel and home were bright spots. Bill Simon said home and apparel sales rebounded from the prior quarter. Apparel delivered a low double-digit comp after logging a high single digit comp in the prior quarter.