Wal-Mart $680 Million Hit Shows Risk of Not Hedging

Wal-Mart Stores Inc. took a $680 million hit to sales last quarter because of the stronger dollar, showing the risks that companies face when they don’t hedge against swings in the greenback.

The world’s largest retailer’s sales excluding membership and other income rose 2.4 percent to $116.2 billion in the quarter ended July 31 and would have gained 2.8 percent to $116.7 billion without currency exchange-rate fluctuations. Wal-Mart, which operates worldwide in local currencies and reports results in U.S. dollars, doesn’t use hedging, spokesman Anthony Rose said via e-mail last week.