Wal-Mart Q1 Earnings Flat
Wal-Mart posted flat first quarter earnings on Thursday, crediting the strengthened dollar with robbing them of what would have been 4.5 percent growth in revenue. Instead the retail giant saw 0.6 percent decline in revenue to $93.47 billion.
Earnings translated to 77 cents per share for a total of $3.02 billion, with the company blaming currency effects for a loss of a potential 4 cents per share. Wal-Mart expects earnings to rise to between 83 to 88 cents per share in the second quarter, helped in part by back-to-school promotions. The company still expects that quarter to compare unfavorably with last year, though, which benefitted from customers spending stimulus checks.
Executive Vice President and Treasurer Charles Holley added, "You're liable to see a continuation of the 'staycation' theme that you saw last summer," which benefits Wal-Mart in areas such as home entertainment.