Sagging international sales held down total revenues and hit profits for retail giant Wal-Mart Stores in the third quarter, the company reported yesterday.
The slow international economy, still tough competition in the United States and heavy investment in stores and online sales continued to drag net profits in the three months to October 31, the company said.
While sales in its main market the United States rose 2.5% over the year-ago quarter, to $74.6bn, international sales slumped 4.8% to 28.4bn, holding total overall domestic and international growth from sales and other revenues to a tepid 0.7%.
Net profits were down 8.2% year on year to $3.0bn, or 98 cents a share.
Doug McMillon, president and chief executive of the company, nevertheless called the quarter “solid,” pointing to gains in online sales operations.
“It’s great to see an improving e-commerce business compliment the momentum we have in our stores,” he said.
In August, Walmart announced it was paying $3bn to take over e-tailer Jet.com to expand its online sales presence.
McMillon also said the company was well-positioned for the crucial fourth quarter, which spans the gift-giving holiday season, but gave no specific forecasts.