Walmart trims 2018/19 profit forecast due to Flipkart deal

(MENAFN- AFP) Walmart trimmed its full-year earnings forecast on Tuesday due to its purchase of a majority stake in Indian online retailer Flipkart and signaled US sales growth could ebb next year.

Shares fell after the forecast, which comes ahead of executive presentations later Tuesday at an annual investor day.

The world's biggest retailer cut its profit target for the current year to a range of $2.65 to $2.80 per share from the prior range of $2.90 to $3.05.

Walmart, which completed its $16 billion acquisition of a 77 percent stake in Flipkart in August, projected that comparable sales growth at US stores next year -- fiscal 2020 -- would be 2.5 percent to 3.0 percent.

Walmart's US sales are on track for 3.0 percent growth this year, the company said in August.

Walmart projected that eCommerce growth next year would be about 35 percent, slower growth than 40 percent expected this year.

Chief Executive Doug McMillon, who has emphasized investment in eCommerce and store beautification, said the company's plans were on track.

"While we're excited about what we've done so far, we aren't satisfied," he said. "As we execute today and build for tomorrow, our associates and unique omni-channel assets position us for success."

Shares fell 2.5 percent to $91.50 in pre-market trading.

MENAFN1610201801430000ID1097576566