America's largest discount retailer Wal-Mart Stores Inc. on Thursday reported a slight profit increase in its second quarter and lowered its full-year profit outlook amid stagnant sales.
The Arkansas-based company announced in a press release that it earned 4.1 billion dollars in its second quarter ending July 31, an increase of 0.6 percent over the same period last year.
Its net sales for the second quarter were 119.3 billion dollars, up 2.8 percent over last year. Total revenue was 120.1 billion dollars, an increase of approximately 3.3 billion dollars, or 2.8 percent, according to the release.
"I' m pleased with our solid earnings per share performance," Doug McMillon, Wal-Mart Stores, Inc. president and CEO said in the release. "As it relates to the positives from the quarter, I' m encouraged by the performance of our International business, our Neighborhood Market sales in the U.S. and by our e-commerce growth."
Meanwhile, The company also cut its annual profit outlook. It now expects earnings per share between 4.90 dollars and 5.15 dollars, down from a range of 5.10 dollars to 5.45 dollars.
Analysts say the adjustment is largely due to sluggish domestic sales, higher-than-expected health care costs and the need to invest more in its e-commerce operations.