Scott: Wal-Mart not up to standards

12 May 2005 – Bentonville (AK): Wal-Mart has reported a weaker-than-expected Q1 profit on the back of steep petrol prices and unseasonably cool weather, and has released a Q2 forecast that analysts have described as "the largest negative revision in recent memory".

Net profit came in at $2.5 billion, or EPS of $0.58, compared with $2.2 billion, or EPS of $0.50, in last year’s Q1. Comp sales rose 2.9 per cent, below the company’s forecast of 3-5 per cent.

"Our results were not up to Wal-Mart standards," said CEO Lee Scott. He added: "We should pick up momentum into the second half of the year."

The company expects Q2 earnings to be in the range of $0.63 to $0.67 per share, down from average analyst estimates of $0.70.