AFP, New York :
US retail giant Wal-Mart Stores projected Thursday earnings would be flat in fiscal year 2018 as it pumps up investment in e-commerce initiatives.
Wal-Mart said earnings for the next fiscal year that begins February 1 will be essentially unchanged from those of fiscal 2017, which are expected to come in at $4.15 to $4.35 a share.
That was below analysts’ forecast of $4.47 earnings per share.
Shares of Dow member Wal-Mart tumbled 2.4 percent to $69.95 in late-morning trade.
The world’s biggest retailer said it would slow investment in new stores and steer funds to e-commerce, technology and store remodels.
The moves come as retailers scramble to do more to beef up e-commerce and integrate mobile technology into operations, such as letting customers order groceries online and pick them up in the store.
“We are encouraged by the progress we’re seeing across our business and we’re moving with speed to position the company to win the future of retail,” said Wal-Mart chief executive Doug McMillon.
Faced with surging growth at Amazon and other online retailers, Wal-Mart’s response in the online sector has included a $3.3 billion acquisition of Jet.com and taking a 10.8 percent stake in Chinese firm JD.com.
The US giant is reportedly in talks to invest $1 billion in Indian e-commerce company Flipkart.
Wal-Mart forecasted an overall capital budget of $11 billion in both fiscal 2017 and 2018, down from $11.5 billion in 2016.
It will open 130 new stores in the United States in the current year, down from a prior plan to build 135-155 stores.
The Bentonville, Arkansas-based company expects to build 55 new stores in the US in fiscal 2018.
US retail giant Wal-Mart Stores projected Thursday earnings would be flat in fiscal year 2018 as it pumps up investment in e-commerce initiatives.
Wal-Mart said earnings for the next fiscal year that begins February 1 will be essentially unchanged from those of fiscal 2017, which are expected to come in at $4.15 to $4.35 a share.
That was below analysts’ forecast of $4.47 earnings per share.
Shares of Dow member Wal-Mart tumbled 2.4 percent to $69.95 in late-morning trade.
The world’s biggest retailer said it would slow investment in new stores and steer funds to e-commerce, technology and store remodels.
The moves come as retailers scramble to do more to beef up e-commerce and integrate mobile technology into operations, such as letting customers order groceries online and pick them up in the store.
“We are encouraged by the progress we’re seeing across our business and we’re moving with speed to position the company to win the future of retail,” said Wal-Mart chief executive Doug McMillon.
Faced with surging growth at Amazon and other online retailers, Wal-Mart’s response in the online sector has included a $3.3 billion acquisition of Jet.com and taking a 10.8 percent stake in Chinese firm JD.com.
The US giant is reportedly in talks to invest $1 billion in Indian e-commerce company Flipkart.
Wal-Mart forecasted an overall capital budget of $11 billion in both fiscal 2017 and 2018, down from $11.5 billion in 2016.
It will open 130 new stores in the United States in the current year, down from a prior plan to build 135-155 stores.
The Bentonville, Arkansas-based company expects to build 55 new stores in the US in fiscal 2018.
