The largest retailer in the United States is confident that for the fourth quarter for FY15, the company will see increase in its sales growth.
Wal-Mart stores reported impressive comparative sales growth for the third quarter of Fiscal year 2015. Evidently, it can be observed that the U.S. retail company is living up to what it initially stated about their new strategies working out for the company. Analysts had rather low expectations for the retailer due to its previous disappointing sales and profit reports but it managed to best analysts’ estimates. Investors are trying not to get carried away with the reports at this point as the difference between the actual sales growth and estimated growth was not very significant.
Even though, Wal-Mart reported good numbers this quarter it still faces one big trouble which includes macroeconomics headwinds. WMT is probably the only stock on the stock exchange that is down year to date by 30%. The world’s largest retailer further posted expected sales for the shopping season as well which still exceed the analysts at Wall Street’s expectations. In the trading session on Tuesday, Walmart stock rose by 2%.
The largest retailer has been facing a lot of competition from online e-commerce giants Amazon.com and dollar stores. It has not been a very easy year for Walmart, which is very clear from the efforts it has been making to get back on track. The company has continued to face competition from these e-commerce companies and retailers as the company has been increases pay wages for its workers and the strong US dollar has also been affecting the company’s performance especially from oversea sales.
On a call with reporters, the chief executive officer of the US Division Greg Foran stated that customers of the retail store have been commenting on the improvement and clean conditions of the Walmart stores. According to Walmart news, the sales at the local stores of the company have gone up by 1.5%, which marked the fifth consecutive increase in the last five quarter. This increase was based on the number of visits to the local stores as the sale per trip was comparatively low.
For the fourth quarter of the current fiscal year, which will be during the holiday season, the company stated that it’s expecting that its sales for the quarter will increase by at least 1%. Greg Foran did not comment further on this topic as to how much amount will be driven by traffic in comparison to the amount that they will be spending per trip. Although, he did seem satisfied with the company’s plans stating that they are feeling good about pulling this together.
On a separate note, the international sales of Walmart fell by 11% to approximately $29.1 million and the net income of the retail company fell by 11%.
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