Bulletin: Wal-Mart Stores Inc.'s Reported Third-Quarter Fiscal 2016 Results Remain In Line With Our Expectations; No Rating Impact

NEW YORK (Standard&Poor's) Nov. 17, 2015--Standard&Poor's Ratings Services today noted Wal-Mart Stores Inc. reported third-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 Oct. 31, 2015, with an accompanying traffic increase, in line with our forecasts for moderate low-single-digit gains. Wal-Mart Neighborhood Market's comparable-store sales increased 8% as a result of strong growth from newer stores. Meanwhile, global e-commerce sales increased about 10% on a constant currency basis. The company's continued investment in people and technology pressured consolidated operating income, which declined 8.8%, offsetting these positive top-line results. We expect these challenges and wage increases in the U.S. will continue pressuring earnings

...NEW YORK (Standard & Poor's) Nov. 17, 2015--Standard & Poor's Ratings Services today noted Wal-Mart Stores Inc. reported third-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 Oct. 31, 2015, with an accompanying traffic increase, in line with our forecasts for moderate low-single-digit gains. Wal-Mart Neighborhood Market's comparable-store sales increased 8% as a result of strong growth from newer stores. Meanwhile, global e-commerce sales increased about 10% on a constant currency basis. The company's continued investment in people and technology pressured consolidated operating income, which declined 8.8%, offsetting these positive top-line results. We expect these challenges and wage increases in the U.S. will continue pressuring earnings in fiscal 2016. The company paid $1.6 billion in dividends and repurchased $437 million in shares in the latest quarter. We expect credit metrics...

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