Walmart’s Math Doesn’t Work
On the May 16, 2013 Q1 call company management said: “May is off to a good start, with positive comps” Source Link bottom of page 16
On August 15, 2013 Walmart reported Q2 comps of –0.3% for the quarter. Source Link
On the August 15, 2013 Q2 conference call “traffic and comp sales increased throughout the quarter” Source Link top of page 10
How do you start off the quarter with positive comps then report a negative comp for the entire quarter, but then say comp sales got better “throughout the quarter”?
This is in addition to management saying things will get better in February AND May, which turned out to be wrong each time.
Management credibility is at stake here. Walmart management needs to be honest about this discrepancy above. Were they lying in May or lying on the August conference call? The math simply doesn’t work. How can Walmart investors trust a word management says after this?