Wal-Mart (NYSE: WMT) reported its second quarter earnings today, and lowered its outlook for the year. Net sales increased 8.8% and income from continuing operations was up 4.1%. But CEO Lee Scott ain't buying it:
"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. 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."
Scott said that the company continues to be pressured by global economic concerns, and the company expect a 1-3% increase in same-store sales in the United States for the third quarter. It lowered its full-year forecast from EPS of $3.15-3.23 to 3.05-3.13.
Its forecast for the third quarter is below the consensus, and the stock should see some downward pressure today. Wal-Mart may be another victim of the subprime crisis, as lower-income Americans are finding themselves in a tight spot.
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