BENTONVILLE, Ark. – Wal-Mart’s profits are up but lower than expected this quarter. Earnings were $3.1 billion (76 cents per share) in the second quarter, up from $2.08 billion (50 cents per share) last year. Net sales for the second quarter were $91.99 billion, an increase of 8.8 percent over last year.
“Although some people will report that Wal-Mart has had record sales and earnings, our underlying operating performance this quarter is not what we expect of ourselves, and not what our shareholders expect of us,” CEO Lee Scott in a statement. “For the remainder of this year, our management team is focused on inventory improvements, delivering quality products at low prices, and store execution at the highest standards.”
The company is lowering its full-year earnings forecast, citing consumers “under economic pressure” around the world. Consequently, the low-cost retailer will return to an emphasis on its low prices after efforts to court a less cost-conscious market.