Wal-Mart: Gas prices will hurt

BENTONVILLE, Ark. -- Wal-Mart expects rising gasoline prices to affect its core customer base, and thus revised its third quarter comp sales forecast to be up between 3 to 5 percent, said chief financial officer Tom Schoewe during the retailer’s second quarter earnings call this week.

“We believe high gas prices will continue to impact a large portion of our customer base and put pressure on our operating results,” he said.

Lee Scott, president and CEO of Wal-Mart Stores Inc. added that the company is “concerned by rising gas prices” and expects challenges.

Net income for the second quarter was $2.8 billion, up 5.8 percent. Sales rose 10.2 percent to $76.8 billion. Comparable-store sales for the quarter increased 3.5 percent -- made up of a comp increase for Wal-Mart Stores of 3.6 percent and a comp increase at Sam’s Club of 2.9 percent.

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See the May 2017 issue of Home & Textiles Today. In this issue, we discuss our annual Market Basket survey, which finds higher prices and more polyester at leading retailers. See details!