On Thursday 14 August Walmart is due to update the market with its second-quarter figures. Its adjusted earnings per share are called at $1.214 better than the previous quarter’s $1.10. Sales are also expected to improve to $119.00 billion from $114.96, and this should see profits increase by more than 8% up to an expected $6.085 billion.
Walmart has continued to look at overseas expansion as the US retail market carries on growing at a slower-than-expected rate. One such venture Asda has found itself dragged into is a price war with its three biggest competitors. Although the company has the benefits of an economy of scale and a more aggressive manner than WM Morrisons, the smaller competitors Lidl and Aldi have attacked the markets and eaten into expectations.
One area that Walmart believes improvements could be made in is its online offerings. Targeting a more competitive platform to eat into the likes of Amazon’s offerings has long been the target.
One blemish from the quarter has been the news that the CEO of Walmart’s US operations, Bill Simon, will be stepping down and the markets will want this transition to be completed smoothly.
Since the last set of quarterly figures the shares have struggled and have just recovered from being oversold. Last February’s price movement has shown that below the $73 level buyers have been enticed back in.