Walmart Disappoints But Stays Course on Price Ads and Ecommerce
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Walmart reported first-quarter sales and earnings that missed forecasts, but it’s forging ahead with more local price-comparison ads and e-commerce investments amid signs its executives see that both are working.
Earnings of $1.14 per share for the quarter ended April 30 fell a penny below analyst forecasts. Comparable-store sales for the nameplate U.S. stores fell 1.4%, compared to a forecast of “about flat,” breaking a streak of six positive quarters.
But executives pointed to things they said are producing positive results, including aggressive pricing, particularly on groceries, backed by local market-basket price-comparison ads on TV and radio that U.S. CEO Bill Simon said will now expand to 70% of Walmart’s markets, up from the current 60%.
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