Wal-Mart stocks fall on profits drop

<p>Profits are down at Wal-Mart because of poor weather, the company has said.</p>

The share price of supermarket chain Wal-Mart fell in the US yesterday (May 15th) after the company announced a fall in its profits in its latest financial results.

Stocks in the firm fell heavily following the news its net income for the three months to the end of April was recorded to be down to $3.58 billion (£2.13 billion), a fall of five per cent compared to the figures from a year ago.

Wal-Mart stocks ended the day 2.43 per cent down on the New York Stock Exchange, although they did rebound by 0.30 per cent in after-hours trading.

The company stated that cold weather in the US was partly due to the fall in its net income, although the firm's net revenue was up slightly at $115 billion during Q1.

"Like other retailers in the US, the unseasonably cold and disruptive weather negatively impacted US sales and drove operating expenses higher than expected," said group chief executive Doug McMillon.

"Wal-Mart's underlying business is solid, and I'm confident in our long-term strategies."

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