Walmart (NYSE:WMT) made some progress on Tuesday reported fiscal fourth-quarter earnings that fell short of analysts’ estimates, as the retailer saw weak demand for toys, apparel and video games during the holiday season.
The outlook of the Arkansas-based retail giant for the upcoming year also came up short of expectations, as Walmart anticipates e-commerce growth will slow. Walmart said the forecast doesn’t include any impact from the deadly coronavirus outbreak, though it continues to monitor the situation, and said it could end up taking a hit in China in the first and second quarters.
Political unrest in Chile, where protests have caused disruption in Walmart stores in the region, also weighed on its results in the latest quarter.
Earnings per share clocked in at $1.38, adjusted, compared to $1.43 expected. Revenue was $141.67 billion, compared to $142.49 billion expected. Same-store sales were up 1.9% in the U.S. vs. growth of 2.3% expected.
The fourth quarter started and ended strong, but lagged in the middle, the company said.
Walmart’s disappointing holiday results add to a list of retailers that saw more of the same. Target also noted weakness in toys. Kohl’s said its women’s apparel business underwhelmed.
But Amazon last month reported holiday-quarter earnings that smashed expectations, claiming customers shopped at record levels and that it quadrupled one-day and same-day deliveries over the period.
Ahead of the holiday season, retailers knew it would be challenging since the calendar contained fewer shopping days between Thanksgiving and Christmas.
Shares in WMT advanced out of the chute 71 cents to $118.60
