Wal-Mart earnings suffer post-winter chill

Wal-Mart Stores Thursday reported lower earnings that missed expectations as sales at flagship US stores edged lower due to cold winter weather. Earnings in the first quarter for Wal-Mart came in at $3.6 billion, down five percent from the year-ago level. "Like other retailers in the United States, the unseasonably cold and disruptive weather negatively impacted US sales and drove operating expenses higher than expected," said Walmart chief executive Doug McMillon. "Walmart's underlying business is solid, and I'm confident in our long-term strategies." Revenues rose 7.5 percent to $115 billion, below the $116.3 billion forecast by analysts. Profits translated into $1.10 per share, five cents shy of expectations. Comparable store sales in the US from its namesake Walmart stores and Sam's Club warehouses declined 0.2 percent from the year-ago period. Those two categories account for more than 70 percent of Wal-Mart's revenues. Sales in Wal-Mart's international division dipped 1.4 percent to $32.4 billion. Wal-Mart projected that second-quarter earnings per share would be between $1.15 and $1.25. Analysts have forecast $1.28. Shares of Wal-Mart declined 3.4 percent to $76.07 in pre-market trade.