Walmart met low second quarter sales and profit expectations it set for itself but significantly lowered its full year outlook due to a tepid third quarter sales forecast and increased e-commerce and health care costs.
Solid sales growth at Costco during the second quarter and a 6% same store sales increase at U.S. clubs did not translate into strong profits for the warehouse club operator whose earnings fell shy of analysts’ estimates.
Walmart managed to achieve its third quarter profit target despite reporting weaker than expected U.S. sales which prompted the company to issue a tepid outlook for fourth quarter sales at Walmart U.S. stores and Sam’s Club units.
Despite reporting a net income of $184 million for the second quarter, ended Aug. 3, up from $156 million in the year-ago period, Nordstrom cut its yearly forecast, citing softer-than-anticipated sales trends.
Walmart lowered its full year profit forecast early Thursday after reporting weaker that expected second quarter same store sales at its U.S. division and suggested global economic conditions remain challenging.