MCMILLON TAPS PHARMACY, SHRINKAGE, WAGES…

Wall Street, and the players there, are not happy with Walmart's numbers. Sam Ro, writing in Walmart whiffs and warns for Business Insider ledes: Walmart's quarterly financial results are out, and the numbers are a bit weak. A bit, Sam?
The retail behemoth reported $120.3 billion in revenue, which was a hair higher than the $119.7 billion expected by analysts. This was boosted by a 1.5 percent gain in US comparable-store sales excluding fuel. But after expenses, earnings came in at just $1.08 per share, which was below the $1.12 expected.
Expected by who? Walmart? Expectations are always tricky. Given the track record so far in 2015, a reasonable company would set as a low a bar as possible. When you can't even jump that low hurdle, you've got problems. Doug McMillon, Walmart's CEO explained the earnings per share refusal this way:
We had margin pressure from pharmacy reimbursements and higher shrink than we expected during the quarter. These impacts, coupled with higher wage investments, impacted EPS.
McMillon is, of course, optimistic that in the long term his nascent strategy will get Walmart back into the race. Good luck with that. Jeff Hess: Have Coffee Will Write.

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