Bentonville, Ark.-based Wal-Mart Stores was following the market down this morning, with shares off 2% after the company's Thursday morning earnings report came out.
Wal-Mart reported 2.3% revenue growth in fiscal Q2, decent results that were largely undermined by corresponding rises in expenses. Consolidated net income earned by the company grew only 1.3%. A smaller share count, however, had the happy result of allowing Wal-Mart to report 5.1% growth in diluted earnings per share. Wal-Mart earned $1.24 per diluted share in Q2.
Same-store sales at the company declined 0.3% in the quarter, a result largely explained by smaller receipts from gasoline sales. Backing out the effects of fuel sales, Wal-Mart's same-store sales would have grown 1.7%.
Looking ahead to the rest of the year, Wal-Mart lowered its full-year earnings guidance by $0.10. Wal-Mart now guides investors to expect full-year 2013 earnings of $5.10 per share to $5.30 per share.
Shares were down 1.8% as of this writing, trading at $75.01 per share.
Wal-Mart's sober assessment of consumer spending adds to worries in earnings from Macy's and Kohl's. Both lowered their expectations for the year after reporting disappointing results.
Wal-Mart is considered an economic bellwether because the retailer accounts for nearly 10% of nonautomotive retail spending in the U.S. The latest performance indicates that many American households continue to struggle in a yo-yo economic recovery.
During a call with the media, Wal-Mart Chief Financial Officer Charles Holley said the top three concerns among its customers are jobs, food costs, and gas and energy prices.
-- Material from The Associated Press was used in this report.
The article Wal-Mart Earnings, and Earnings Warning, Help Send Shares Down originally appeared on Fool.com.
Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.