Walmart saw its first quarter revenues slide 0.1% but profits fell further as the strong dollar and changes in consumer spending impacted the retail giant’s bottom line.
For the quarter ended April 30, 2015, the Bentonville-based retailer posted revenue of $114.826 billion, down from $114.96 billion one year ago. Net income fell to $3.341 billion, a 6.7% decline from $3.582 billion in last year’s comparable quarter. Earnings per share dropped from $1.11 to $1.03 mission analysts’ earning estimates of $1.05 per share.
“We had a solid first quarter. We took some important strategic steps to strengthen the foundation of our business for the future. We need to continue to get better at consistently running great stores, clubs and e-commerce everywhere we operate…and we are,” said Walmart CEO Doug McMillon.
While the strong dollar abroad impact currency rates for Walmart, domestic consumer spending habits clearly had an effect on the retailer’s quarter.
With stable employment and low gas prices, many analysts have suggested that consumers are spending money on bigger ticket items – cars, homes and technology – versus smaller, less durable items typically sold at Walmart.