Walmart Stores Inc. (Bentonville, Ark.) announced its first-quarter earnings, which included drops in both profits and revenues. Net income fell 7.5 percent to $3.34 billion, and revenues slipped 0.1 percent to $114.83 billion.
The company did have increases in same-store sales, although, at a gain of 1.1 percent, they were still slightly below what had been expected.
According to Women’s Wear Daily, Walmart is a barometer of consumer spending, so these findings suggest that consumer spending is below what had been expected.
“Based on recent surveys, we know that many of our U.S. customers are using their tax refunds and the extra money from lower gas prices to pay down debt or put it into savings,” explains Doug McMillon, president and ceo of Walmart. “They’re also using these funds for everyday expenses like utilities and groceries. That’s where we can be their destination of choice.”