LONDON (ShareCast) - (Sharecast News) - Walmart downgraded its 2019 earnings forecast on Tuesday to account for its acquisition of Indian e-commerce company Flipkart earlier this year.
In a statement ahead of its annual investor meeting, the retailer cut its forecast for 2019 adjusted earnings per share to between $4.65 and $4.80 from a previous range of $4.90 to $5.05.

In addition, the company said it now expects costs from the Flipkart deal to put pressure on fiscal 2020. It expects operating profit to drop by a low single-digit percentage range, but this is expected to increase by a low single-digit percentage range when excluding Flipkart in both FY19 and FY20.

Walmart said US same-store sales should grow between 2.5% and 3% in FY20, with e-commerce net sales growth expected to be around 35%.

President and chief executive officer Doug McMillon said: "We're adapting and transforming with speed to better serve our existing customers and reach new ones. We're operating with discipline, balancing our short and long-term opportunities. While we're excited about what we've done so far, we aren't satisfied. As we execute today and build for tomorrow, our associates and unique omni-channel assets position us for success."

Meanwhile, chief financial officer Brett Biggs said he feels "great" about the company's position.

"We are leveraging our scale, assets and financial strength in ways unique to Walmart to enhance and build competitive advantages. We continue to operate with discipline, we're strengthening our cost culture and we're leveraging technology, data and analytics in new ways to be more productive. Our financial strength gives us the flexibility to deliver near-term results while making strategic decisions for the longer term."

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