Walmart Sales, Profit Rise, But Entertainment Dips16 May, 2013 By: Chris Tribbey
Walmart reported both higher revenue and earnings May 16 for its fiscal first quarter of 2013 (ended April 30), but did note a drop in sales for its entertainment division, citing less spending on high-ticket electronics.
The retailer reported revenue of $114.2 billion for the quarter, up 1% year-over-year, and a profit of $3.8 billion, up 1.1% year-over-year.
However, comparable store sales in the United States fell 1.4%, with Walmart attributing the drop to a delay in income tax refund checks, poor weather conditions and lower-than-expected grocery inflation. International sales revenue grew 2.9%, while online sales grew 30% year-over-year.
“In a quarter marked by considerable headwinds to top line sales, Walmart delivered solid EPS growth of 4.65,” said Mike Duke, president and CEO of Walmart Stores Inc.
In a conference call with investors, Bill Simon, president and CEO of Walmart U.S., addressed the drop in revenue at Walmart’s entertainment division, despite gains in the retailer’s wireless division.
“Softer discretionary spending impacted entertainment and created even more significant headwinds for higher-ticket electronics like TVs,” he said.