Walmart Warns: Food Stamp Cuts Hurt Our Profits [View all]

[Purveyor]

By Agence France-Presse
Friday, January 31, 2014 12:24 EST

Walmart Friday said bad weather and cuts in food stamp support for the poor weighed on US sales and would hit earnings for its November-January fourth quarter.

Wal-Mart Stores Inc., the world’s largest retailer and the country’s largest single private sector employer, said it now expects sales at its namesake US stores and its Sam’s Club chain to be “slightly negative” for the quarter, which included the crucial holiday shopping period.

Previously the company forecast “relatively flat” sales at Walmarts and 0-2 percent growth at Sam’s Clubs.

Walmart reports fourth-quarter earnings on February 20. The company had previously forecast underlying earnings of $1.60-$1.70 per share.

“Despite a holiday season that delivered positive comps, two factors contributed to lower comp sales performance,” said Walmart chief financial officer Charles Holley — referring to sales at comparable stores.

MORE...

http://www.rawstory.com/rs/2014/01/31/walmart-warns-food-stamp-cuts-hurt-our-profits/