U.S. sales disappoint for Wal-Mart in Q2


Wal-Mart (NYSE:WMT) reports comparable-store sales were flat in Q2.

The traffic in U.S. stores was down 1.1% and the average ticket price was down by the same level.

Revenue for Wal-Mart International rose 3.1% to $33.9B during the period.

The company lowers full year EPS guidance to $4.90-$5.15 from $5.10-$5.45.

WMT -0.2% premarket

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Comments (23)
  • Shaduc
    , contributor
    Comments (2909) | Send Message
     
    When the layoffs at Walmart begin then the public will begin complaining of the high unemployment rate. Then that president will have to figure out some other employment scheme (currently the airport branch of the TSA/Department of Homeland Security).
    14 Aug 2014, 07:56 AM Reply Like
  • BillBrown
    , contributor
    Comments (524) | Send Message
     
    What "layoffs"? Walmart has ~20K FEWER employees to staff 600 more stores than several years ago domestically. Getting stock onto empty shelves in these mammoth superstores has been long cited (here and elsewhere) as a major imperative for the new US Stores CEO.

     

    Yet, here you are, proclaiming the company is dead and about to layoff massive numbers ...

     

    Why are you trolling this forum? Aren't your anti-Obama rants better spent on a political board? As for the TSA: Obama maintains it, but he didn't invent it. It was a product of a REPUBLICAN/conservative White House era. Get your facts straight, ideologue.
    14 Aug 2014, 11:09 AM Reply Like
  • Shaduc
    , contributor
    Comments (2909) | Send Message
     
    When the layoffs at Walmart begin then the public will begin complaining of the high unemployment rate. Then that president will have to figure out some other employment scheme (currently the airport branch of the TSA/Department of Homeland Security).
    14 Aug 2014, 07:56 AM Reply Like
  • Shaduc
    , contributor
    Comments (2909) | Send Message
     
    When the layoffs at Walmart begin then the public will begin complaining of the high unemployment rate. Then that president will have to figure out some other employment scheme (currently the airport branch of the TSA/Department of Homeland Security).
    14 Aug 2014, 07:57 AM Reply Like
  • Shaduc
    , contributor
    Comments (2909) | Send Message
     
    When the layoffs at Walmart begin then the public will fret over the high unemployment rate. Then that president will have to figure out some other employment scheme (currently the airport branch of the TSA/Department of Homeland Security).
    14 Aug 2014, 07:57 AM Reply Like
  • Shaduc
    , contributor
    Comments (2909) | Send Message
     
    When the layoffs at Walmart begin then the public will begin complaining of the high unemployment rate. Then that president will have to figure out some other employment scheme (currently the airport branch of the TSA/Department of Homeland Security).
    14 Aug 2014, 07:58 AM Reply Like
  • Shaduc
    , contributor
    Comments (2909) | Send Message
     
    When the layoffs at Walmart begin then the public will fret over the high unemployment rate. Then that president will have to figure out some other employment scheme (currently the airport branch of the TSA/Department of Homeland Security).
    14 Aug 2014, 07:58 AM Reply Like
  • Hopeful17
    , contributor
    Comments (834) | Send Message
     
    Get off the board you complete NUT!
    14 Aug 2014, 01:09 PM Reply Like
  • Minutemen
    , contributor
    Comments (2266) | Send Message
     
    What did you say, Shaduc?
    14 Aug 2014, 09:05 AM Reply Like
  • investingInvestor
    , contributor
    Comments (2451) | Send Message
     
    Walmart has been Amazon'd.

     

    Over the last couple years, Walmart C level executives have been boasting how Walmart would crush Amazon. "Price matching" was touted as Walmart's big stick to be applied to Amazon. This rhymes with Intel's VPs shouting "Moore's Law is alive and well" (when technology experts know better).

     

    I like Walmart's employees. They are knowledgeable and helpful. Much of the time, Walmart does not have what I cannot find.

     

    Walmart revenue is stalling out. Walmart has lost faith in its inhouse C level executives, and the BoD is looking outside. This is a fundamentally bad sign for B&M retailers.

     

    This is a fundamentally good time for Amazon and Costco.
    14 Aug 2014, 10:10 AM Reply Like
  • Minutemen
    , contributor
    Comments (2266) | Send Message
     
    Investor: That's a ridiculous comment. Wal-Mart is far, far more profitable than Amazon. Indeed it is Amazon that is experiencing more growth and profitability struggles than Wal-Mart. Wal-Mart actually has profit margins on the products it sells. Amazon only generates increasing revenues by expanding its customer base, but has an operating loss on what it sells. This is not a business model that can succeed for long.
    14 Aug 2014, 10:27 AM Reply Like
  • James Sands
    , contributor
    Comments (2595) | Send Message
     
    In addition, Walmart's e-commerce division is generating around $10 billion in revenue and is expected to grow 30% this year. This growth is similar to Amazon during the same scale. I don't follow Walmart closely, so I'm not sure how/what they spoke to regarding their e-commerce segment.

     

    So by your logic, Walmart has been Amazon'd and Walmart'd.....but make no mistake, Walmart will be the biggest threat to Amazon for a long time to come.

     

    Physical retail trumps e-commerce estimates globally on a significant level still. While e-commerce is approaching the hundreds of billions, physical retail is in the trillions.

     

    Jeff Bezos said it best in one of his recent interviews when he said he hoped Amazon would still be around before he died.....telling of the competitive pressures...
    14 Aug 2014, 10:57 AM Reply Like
  • investingInvestor
    , contributor
    Comments (2451) | Send Message
     
    Minutemen, Walmart is rudderless, having known problems, looking for new ideas. Do you walk Walmart stores, talk to store management? Do you?

     

    James, I have test drove Walmart's ecommerce. It is a tiny corner at the front of the store. You have to buzz for an employee to fetch your purchase. This takes weeks. I have observed and talked with the other customers in line.

     

    Anchoring on the Walmart of old with Sam in charge is wishful reflection.
    14 Aug 2014, 01:21 PM Reply Like
  • ReligiousWacko
    , contributor
    Comments (1825) | Send Message
     
    Maybe Walmart needs to emphasize how much money its online division is losing but spin that as "investment" for Wall St to start upgrading the stock ..
    14 Aug 2014, 03:39 PM Reply Like
  • James Sands
    , contributor
    Comments (2595) | Send Message
     
    II,

     

    They ship direct just like Amazon too, for free in some cases. Pick up is not the only option, but if demand increases, the service will evolve from your comment. I'm sure others have opposing opinions.

     

    Point is, Walmart is going to compete and is structured better than Target, or Costco, who are way behind the curve from an e-commerce perspective. Walmart has proven it can replicate Amazon to a certain scale already at similar growth rates.

     

    This is not something to blow off as no threat.

     

    Lastly, the majority of Amazon's growth is coming from areas with no margin future such as AWS and electronics. General merchandise growth is shrinking most likely due to competition.
    14 Aug 2014, 03:53 PM Reply Like
  • investingInvestor
    , contributor
    Comments (2451) | Send Message
     
    James, Walmart ships to a local store for free. Walmart charges to ship to your residence.
    14 Aug 2014, 06:59 PM Reply Like
  • James Sands
    , contributor
    Comments (2595) | Send Message
     
    I will let Walmart respond to this and post it in a response but here is a guide straight from the site which confirms shipping to your home:

     

    "4. Select your shipping method for each item.

     

    For Store Pickup (free shipping to a Walmart store), search for or choose your closest Walmart store. Turn on your phone’s location services to see which stores are near you. Additional information on Store Pickup can be found here.

     

    For shipped items, choose a shipping speed based on the arrival dates associated with different shipping methods. You’ll be able to see the shipping cost for your selection before you place your order.
    When you shipping selections are complete, tap Continue."

     

    When I hypothetically attempt to buy a Kitchen Aid mixer the following is also stated:

     

    "Ship to home or store pickup?" The ship to home option is free because it is over $50 bucks.

     

    I'm sorry but you are off base stating that they do not deliver to your home for free, and initially saying you have to pick it up from a store location.

     

    I will continue to repeat, Walmart is going to challenge Amazon long-term. I have researched this as I have been an Amazon shareholder in the past. Walmart is the major legit competitor moving forward.

     

    I am still long eBay, which I might add since Walmart also allows the use of Paypal which Amazon does not.
    14 Aug 2014, 10:08 PM Reply Like
  • investingInvestor
    , contributor
    Comments (2451) | Send Message
     
    James, the cost was LESS THAN $50.
    16 Aug 2014, 12:30 AM Reply Like
  • James Sands
    , contributor
    Comments (2595) | Send Message
     
    Gotcha, thanks.
    16 Aug 2014, 10:43 PM Reply Like
  • Hopeful17
    , contributor
    Comments (834) | Send Message
     
    Looks like Wal-Mart did better than most "so called Experts" predicted. By the way, I have no connection to Wal Mart and do not own any shares at this time. If the price drops a few points I may change that.
    14 Aug 2014, 01:13 PM Reply Like
  • Minutemen
    , contributor
    Comments (2266) | Send Message
     
    Follow up news:

     

    Wal-Mart takes advantage of Disney-Amazon pricing skirmish (Aug 17, 2014)
    DIS) DVD titles is on the rise at Wal-Mart (NYSE:http://bit.ly/uElAtu) after the retail giant decided to aggressively step into a distribution void left when Amazon (NASDAQ:http://bit.ly/t2V5me) blocked Disney DVD purchases on its website.

     

    Pre-orders for Captain America: The Winter Soldier soared 90% after Wal-Mart offered a price cut on the Marvel film to $14.96 vs. the list price of $14.99 on Amazon where consumers can only sign up for an e-mail notification on availability.

     

    Analysts note that although DVD sales are only a small piece of the e-commerce pie, any development that levels out the playing field is a boost to Wal-Mart's online brand. Global e-commerce sales rose 24% at Wal-Mart in Q2, led by double-digit growth in the U.S. and China.

     

    What to watch: DVD sales typically peak during the holiday shopping season giving Disney even more leverage in ongoing negotiations with Amazon over pricing."
    18 Aug 2014, 07:45 AM Reply Like
  • BillBrown
    , contributor
    Comments (524) | Send Message
     
    Geezus ... "Wal-Mart offered a price cut on the Marvel film to $14.96 vs. the list price of $14.99 on Amazon."

     

    Ya, a lot of differentiation there, boy o' boy.

     

    [Why would you waste your time, or anyone else's, with this drivel? You're THAT desperate and long WMT that you would try to prop up *anything* as news??]
    18 Aug 2014, 09:28 AM Reply Like
  • Minutemen
    , contributor
    Comments (2266) | Send Message
     
    BillBrown: Actually, I posted the DIS news above to the wrong article. I thought I was posting to a discussion thread about the Amazon/Disney dispute where AMZN has blocked pre-orders of new DIS DVD releases. I have no position in WMT or AMZN, but am long DIS. My argument is that DIS does not need AMZN and that other vendors, such as WMT, can carry the load. The news article I posted is evidence for this, showing that WMT pre-orders for DIS are up 90% due to the AMZN stance.
    18 Aug 2014, 09:37 AM Reply Like
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