Wal-Mart turnover up but profits down

Wal-Mart, the world’s largest retailer, recorded a higher turnover than expected, but earnings declined due to lower margins.

Its sales in the third quarter exceeded USD 110.2 billion, up 8.1% over the previous year, but its net profit of USD 3.3 billion was down 2.9%.

Wal-Mart said that all its business segments are doing better today than a year ago. The retailer reported that its sales in the United States was 63.8 billion USD, an increase of 1.9%. International sales jumped 20% to 32.4 billion USD.

The profit decline was attributed to increased costs of 8.9%. Efforts to lower the selling price and higher procurement costs have eroded margins. Following cost control measures Wal-Mart said general and administrative expenses would be reduced to ensure lower prices for consumers.

source :  les affaires.com