Wal-Mart Forecast Misses Estimates on Sales Slump

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May 15 (Bloomberg) -- Wal-Mart forecast second-quarter profit that missed analysts’ estimates as the company copes with slow sales in the U.S., especially at its Sam’s Club warehouse stores. Julie Hyman reports on Bloomberg Television's “In The Loop.” (Source: Bloomberg)

The retailers.

It was the weather affect, which took three cents per share off the earnings-per-share number.

Sales fell.

We know what went on there.

There were some other headwinds that are going to persist into the second quarter.

Leading to -- everybody is thinking, ok, the first corner was bad.

Aren't things looking up?

A couple of different things going on.

The company is still seeing a lot of currency headwinds because it has a big international business.

Health care costs have been going up.

Not just health care inflation, but also enrollment of berries and ploys and health care plans have been higher than anticipated.

There is the continuing effect of cuts to the food stamps program.

All of these things are still happening.

In the second quarter, they will take a toll.

Is anything going to change?

It does not sound like it.

Unless you look at the comparable sales numbers.

You will find the u.s. business, those trends are starting to improve.

It will be interesting to see the disconnect in the second quarter when the number ends up coming out between that sales number.

Are they seeing more traffic or more people in the store is spending more money?

The earnings number, if you are getting the bytes from these other effects we are talking about like health care costs.

What about walmart online?

Their continuing on pretty well.

When a seven percent increase in online sales in the first quarter.

After a 30% increase last year.

The company has been very inquisitive in technology.

It has been buying up companies like a recipe technology company and the company that manages website performance optimization.

It has made a lot of acquisitions there.

There are 2000 folks employed on the west coast working for walmart.

When of the executives at walmart.com says therey are building a technology within the world's largest retailer.

You don't think of walmart as an e-commerce -- they are expecting to do $13 billion in online sales this year.

Thank you so much.

Julie hyman.

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This text has been automatically generated. It may not be 100% accurate.

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