Walmart Profits Hit By Higher Wages And A Strong US Dollar

Walmart Profits down on strong dollar and higher employee wages

The U.S. dollar has continued to strengthen and U.S. workers are demanding higher wages. Those two factors have caused Walmart’s profits to shrink.

The company released its quarterly earnings on Tuesday and announced $120.2 billion in revenue, only slightly higher than last year’s total.

Walmart also adjusted its previous guidance for full-year earnings per share, adjusting down from $4.40 and $4.70 from $4.70 and $5.05.

Carol Schumacher, Walmart’s investor relations vice president, says profits will be “pressured for the remainder of the year.”

The company also notes that along with wage hikes, employers have been given an increasing number of hours. Schumacher says the company’s investments will help Walmart in the long-run, even if profits are slowed at the moment.

Hourly wage increases also caused slower than expected last quarter. Walmart officials announced a minimum hourly pay for its workers of $9 starting in February 2015.

Walmart’s stock was down more than 3% in premarket trading.

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Written by Peter Mondrose

Peter Mondrose

Peter Mondrose is the Editor-In-Chief at BusinessPundit. He received his degree in Economics in 1998 and a second degree in Journalism in 2004. He has served as a financial adviser, market trader, and freelance journalist for the last 11 years. When he's not investigating market conditions and reporting on workplace news, he can be found traveling with his wife, dog, and laptop. He can be reached at PeterMondrose@BusinessPundit.com or (929) 265-0240.