Bulletin: Wal-Mart Stores Inc.'s Reported Second-Quarter Fiscal 2016 Results Were In Line With Our Expectations

NEW YORK (Standard&Poor's) Aug. 18, 2015--Standard&Poor's Ratings Services today noted Wal-Mart Stores Inc. reported second-quarter fiscal 2016 results that were in line with our expectations. Walmart U.S. reported a 1.5% increase in comparable-store sales in the quarter ended July 31, 2015, with an accompanying traffic increase, in line with our expectations for moderate low-single-digit gains. Wal-Mart Neighborhood Market's comparable-store sales increased 7.3% given strong growth from new stores. Meanwhile, global e-commerce sales increased about 16% on a constant currency basis. Lower Walmart U.S. margins, primarily from reduced pharmacy reimbursement rates and inventory shrinkage, and investments in customer experience, offset these positive top-line results, as consolidated operating income declined 10%. We expect these challenges, including the noted

...NEW YORK (Standard & Poor's) Aug. 18, 2015--Standard & Poor's Ratings Services today noted Wal-Mart Stores Inc. reported second-quarter fiscal 2016 results that were in line with our expectations. Walmart U.S. reported a 1.5% increase in comparable-store sales in the quarter ended July 31, 2015, with an accompanying traffic increase, in line with our expectations for moderate low-single-digit gains. Wal-Mart Neighborhood Market's comparable-store sales increased 7.3% given strong growth from new stores. Meanwhile, global e-commerce sales increased about 16% on a constant currency basis. Lower Walmart U.S. margins, primarily from reduced pharmacy reimbursement rates and inventory shrinkage, and investments in customer experience, offset these positive top-line results, as consolidated operating income declined 10%. We expect these challenges, including the noted margin pressure, and wage increases in the U.S. will continue pressuring earnings in fiscal 2016. The company paid $1.6 billion...

Bulletin