Wal Mart Stores (WMT) has reported 1.30 percent fall in profit for the quarter ended Apr. 30, 2017. The company has earned $3,039 million, or $1 a share in the quarter, compared with $3,079 million, or $0.98 a share for the same period last year. Revenue during the quarter went up marginally by 1.41 percent to $117,542 million from $115,904 million in the previous year period. Gross margin for the quarter expanded 7 basis points over the previous year period to 25.40 percent. Total expenses were 95.54 percent of quarterly revenues, up from 95.45 percent for the same period last year. That has resulted in a contraction of 10 basis points in operating margin to 4.46 percent.
Operating income for the quarter was $5,237 million, compared with $5,275 million in the previous year period.
"We delivered a solid first quarter and were encouraged by the start to the year. We're moving faster to combine our digital and physical assets to make shopping simple and easy for customers. Our plan is gaining traction, and I want to thank our associates for their hard work, ingenuity and commitment to our customers. Our customers have choices, and we have to earn their business with every interaction." Doug McMillon president and chief executive officer, Walmart
The company projects diluted earnings per share to be in the range of $1 to $1.08 for the second-quarter.
Operating cash flow declinesWal Mart Stores has generated cash of $5,385 million from operating activities during the quarter, down 13.05 percent or $ 808 million, when compared with the last year period. The company has spent $1,874 million cash to meet investing activities during the quarter as against cash outgo of $2,119 million in the last year period. It has incurred net capital expenditure of $1,794 million on net basis during the quarter, down 15.38 percent or $326 million from year ago period.
The company has spent $3,972 million cash to carry out financing activities during the quarter as against cash outgo of $5,432 million in the last year period.
Cash and cash equivalents stood at $6,545 million as on Apr. 30, 2017, down 13.85 percent or $1,052 million from $7,597 million on Apr. 30, 2016.
Debt comes down
Wal Mart Stores has recorded a decline in total debt over the last one year. It stood at $46,497 million as on Apr. 30, 2017, down 7.05 percent or $3,525 million from $50,022 million on Apr. 30, 2016. Interest coverage ratio deteriorated to 8.76 for the quarter from 9.02 for the same period last year.
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