Tougher Competition Lead to Worst Income- Walmart

Walmart reported a net income of $3.4bn (£2.2bn) in the three months to July, down from $4.09bn a year earlier.

Meanwhile, Asda said sales were down 4.7% in the period compared with last year, because of tougher competition.

The quarterly report is the worst to date for Asda under Walmart's ownership.

 

Asda's chief executive, Andy Clarke, said at a briefing: "We've hit our nadir, but we're on the upward curve now."

He went on to say that he believed Asda's third-quarter results would be better, with "signs of recovery" being seen already.

"We should see positive green shoots as we go into the new year," he added.

The chief executive of Walmart, Doug McMillon, said in a statement: "We're pleased that the investments we've made are helping to improve our business. Even if it's not as fast as we would like."

Walmart said its fall in income was due to increased investments in staffing and weaker profit margins in its US pharmacy business.