Shares Of Wal-Mart Slide After Revenue Miss, Weak Outlook, And Negative Same-Store Sales Growth

Shares of Wal-Mart are sliding in the pre-market after mediocre earnings.

While the company managed to surpass expectations on the earnings line, revenue of $166 billion was $1 billion shy of expectations.

Worse, the company’s earnings estimates for the coming quarter of $0.91 to $0.96 is below existing expectations of $0.96.

Comp store sales in the US were down 1.1% for the quarter, if you exclude fuel sales.

This line from CEO Mike Duke is ominous: “Some of the pricing and merchandising issues in Walmart ran deeper than we initially expected, and they require a response that will take time to see results… There is no greater priority for Bill or me than getting sales back into positive territory. “

This stage of the cycle for Wal-Mart is ugly: The higher-end buyers who became Wal-Mart customers during the crisis have gone back to higher-end shopping. Conversely, the low-end buyers haven’t seen much of a recovery yet.

This chart of Wal-Mart vs. the S&P gives a nice long-term look at how badly this company has underperformed the rest of the market.



Click here for a look at how Wal-Mart became the biggest grocer in the country >

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.