Home / Knowledge / News / Textiles / In biggest ever drop, Walmart loses over $20 bn
In biggest ever drop, Walmart loses over $20 bn
15
Oct '15
Walmart, the world’s largest retailer, saw its shares plunge 10 per cent or more than 6 points on October 14, its biggest drop ever. The crash evaporated over $20 billion in market value, according to media reports.

Walmart shares started to nosedive after the mega-retailer warned that increases in employee wages and investments in e-commerce will continue to take huge chunks out of its profit for the next few years.

Walmart executives tried to put a positive spin on a sour sales and profit outlook, telling investors on a conference call that “we’re in investment mode” and “we’re a growth company,” even as the company lost the equivalent of the entire market value of department-store chain Macy’s.

Even a new $20 billion share repurchase plan - which typically would be viewed as an investor-friendly move - didn’t do much to make investors feel better about an outlook for flat sales and the 6 to 12 per cent decline in earnings per share that the company is now forecasting for fiscal year 2017.

CEO Doug McMillon has made clear his plans to overhaul the world’s biggest retailer - but doing so comes at a hefty cost. The company has been ploughing money into its e-commerce business, building new warehouses and revamping its supply chain. It also raised its starting wages to $9 an hour this year and $10 next year, costing the company $2.7 billion over the next two years. An earnings rebound isn’t expected now until fiscal 2019, the company indicated.

“This is a really big ship and you have to deal with it one piece at a time,” Walmart US CEO Greg Foran told analysts. While that may be true, Wall Street isn’t likely to be patient about it. (SH)

Fibre2Fashion News Desk – India


Must ReadView All

Indian govt approves special package for leather, footwear

Textiles | On 16th Dec 2017

Indian govt approves special package for leather, footwear

The Union Cabinet chaired by PM Narendra Modi has approved a special...

EU parliament resolution calls for Cambodia sanctions

Apparel/Garments | On 16th Dec 2017

EU parliament resolution calls for Cambodia sanctions

Following the ongoing crackdown in Cambodia on the opposition and...

Affordable prices to be hit if US pulls out of NAFTA: NRF

Apparel/Garments | On 16th Dec 2017

Affordable prices to be hit if US pulls out of NAFTA: NRF

US retailers’ ability to offer consumers quality products at...

Interviews View All

Headhonchos
Indian fashion industry

Cotton consumption will keep growing in the Indian fashion industry

Binoy Ravjani
Hero's Fashion

‘One of the recent trends in hand block printing is the indigo process,...

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

December 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
68.1%
No
13.8%
Skip
18.1%

Total Votes: 94

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
62.8%
No
29.8%
Skip
7.4%

Total Votes: 94

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
9.6%
Skip
3.2%

Total Votes: 94

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.9%
No
8.5%
Skip
9.6%

Total Votes: 94


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search