Wal-Mart cuts profit forecast as it gears up e-commerce

Wal-Mart Stores lowered its 2014 profit outlook as it turns toward online sales amid weakness in its key US market, still struggling with a fragile economy. The world's largest retailer posted a slight profit rise and better-than-expected sales for the second quarter, which ended July 31. Wal-Mart cut its 2014 earnings per share forecast to $4.90- $5.15, from the prior estimate of $5.10-5.45, citing investments in e-commerce and higher health care costs than previously anticipated. The outlook was lower than what analysts had expected. The Bentonville, Arkansas-based Company reported net income of $4.09 billion in the quarter, up 0.6 per cent from a year ago. Adjusted earnings per share were $1.21, matching Wall Street estimates. Net sales beat expectations, rising 2.8 per cent year-over-year to $119.33 billion. Total revenue rose 2.8 per cent to $120.1 billion, according to AFP.