Walmart Suffers in Q1

Walmart Stores Inc. (Bentonville, Ark.) reported a 1.4 percent drop in same-store revenues in its first quarter ended April 30, its first drop in a year and a half.

Overall sales rose just 1 percent (excluding Sam’s Club stores) and profits increased a slim 1.1 percent.

The company also offered a profit outlook that came below analysts' expectations.

At a time when unemployment is still high and Social Security taxes have risen, the world’s largest retailer cut prices on groceries and other necessities for its base of lower-income shoppers. But, according to analyst Devorah Weinswig of Citigroup Inc., “The impact of higher payroll taxes became a significant headwind.”