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Walmart cuts earnings outlook for 2019



Walmart on Tuesday, March 30, 2011 – FlipKey, and said that e-commerce growth will be less robust next fiscal year as the company is still struggling to win more shoppers online.

The company bought a 77 percent stake in Flipkart for $ 1

6 billion in May as part of its strategy to bulk up its e-commerce business, outbidding e-commerce giant Amazon. It was Walmart's biggest deal ever at the time. Walmart saw the acquisition as critical to gaining a foothold in India's growing market.

Helped by the investments Walmart has been making business in its e-commerce business, U.S. online sales are about 40 percent during the current fiscal year. Next year, the retailer said it sees its e-commerce division net sales growth of about 35 percent – not quite as robust. It continues to roll out online, including dresses from Lord & Taylor. The initiatives have been spearheaded by Jet.com founder Marc Lore.

For fiscal year 2020, the company said it expects its U.S. same-store sales growth to 2.5 to 3 percent. Fiscal year 2020 operating income is expected to decline slightly. Walmart CFO Brett Biggs told CNBC's Courtney Reagan on Tuesday morning that he "feels good about the things we can control." Walmart's said net sales growth for 2020 is predicted to be at least 3 percent, hurt by the deconsolidation of its Brazil.

operations and reduced tobacco sales at its wholesale division, Sam's Club. It expects more than 5 percent of international sales.

"We're adapting to and transforming our existing customers into new ones," said CEO Doug McMillon in a statement. We're operating with discipline, balancing our short and long-term opportunities. We're excited about what we're doing, we're not satisfied omni-channel assets position us for success. "

As for the impact of an on-going trade with China on its operations, Biggs said the company's plan is to" manage margin in a way that makes sense for customers and shareholders. "

Walmart has been investing heavily in recent months to compete with other retailers including Amazon and Target. It announced a new partnership on Tuesday with Advance Auto Parts. It recently bought the lingerie company Bare Necessities. Earlier this month, it got Eloquii, a retailer that sells plus-sized clothes, for $ 100 million. Walmart therefore announced a partnership with movie studio Metro Goldwyn Mayer to create content with its video-on-demand service Vudu.

But these investments have also been made into Walmart's big margins, stoking fear among the financial community.

"Gordon Haskett analyst Chuck Grom said."

"While the top line outlook for 2019 looks healthy and generally in-line with expectations, the margin view for next year did come in better than expected."

The retailer said within 10 stores in the US and more than 300 internationally, mainly in Mexico and China.

Walmart is one company expected to benefit from Sears Holdings filing for Chapter 11 bankruptcy protection earlier this year and 150 stores before the year is over. [19659003] Walmart shares have fallen about 5 percent so far this year. The retailer has a market cap of about $ 275 billion, compared with Amazon, which has a market cap of roughly $ 859 billion.


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