BENTONVILLE, ARKANSAS: A one-off charge relating to its withdrawal from the German market [WAMN: 01-Jun-06] dragged down profits in Wal-Mart's second fiscal quarter by 26%.
Analysts, however, are more troubled by lackluster performance of the retail giant's US division, which accounts for two-thirds of its sales.
Wal-Mart attributes this to higher fuel costs, rising utility costs, extra spending on back-to-school advertising and the expense of its program to remodel 1,300 stores before the Thanksgiving-Christmas holiday period.
Posting its first decline in nearly ten years, the Bentonville behemoth reported net income of $2.08 billion (€16.27bn; £10.98bn), down year-on-year by over one-quarter due to a $863 million charge relating to the pending sale of its 85 German stores.
© Copyright 2017
All rights reserved including database rights. This electronic file is for the personal use of authorised users based at the subscribing company's office location. It may not be reproduced, posted on intranets, extranets or the internet, e-mailed, archived or shared electronically either within the purchaser's organisation or externally without express written permission from WARC.