Walmart Inc (NYSE: WMT)

Walmart suffered its worst stock performance on a single day on Wall Street since January 8, 1988. The world’s largest retailer failed to meet its fourth-quarter expectations, announcing a decrease in online sales growth and profit during last year’s holiday season.

The results saw shares of the retail giant plunge more than 11% today (February, 20). It is the first time in 30 years that Walmart has tumbled so hard on the stock market.

The plunge ate out about $30B of the company’s market cap to close the trading session at around $230B, down from $310B last week on Friday.

WMT Earnings & Outlook

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Shares of Walmart have plunged about 5% since the start of 2018, while those of its Amazon (its biggest competitor) have gone up by 25%. The company closed Tuesday’s (Feb. 20) trading session at $1,468.34 and gained a modest 1.5%.

In what had been a rapid-growing online business, the retail giant reports having suffered a sharp slowdown, as logistical issues compounded competitive pressure.

Wall Street expects the profit squeeze to continue as the company cuts prices, more so in groceries, from where it generates more than 50% of its sales. A lead lid on earnings was also kept by the retailer’s seasonal discounting.

The company’s profit margins sunk 60 basis points during the final three months of its financial year, and its executives said 66% of the decline was as a result of “price investments.

Walmart’s CEO Comments

The company’s executives said it would double its investments in online grocery sales and e-commerce, a consumer sector that is believed to increase both loyalty and shopper numbers. “It is possible we might choose our e-commerce segment might lose a little more this year than in 2017, but generally speaking, we believe the level of losses would be the same,” said Walmart’s Chief Executive Officer, Dough McMillon.

The CEO added: “The management team and I are watching store traffic counts, e-commerce profitability, e-commerce growth rates, and deciding on a quite fast cycle where and how much money to invest.”

Walmart Inc. Profile

Walmart Inc. engages in wholesale and retail business. The company was founded in 1962 and incorporated 1969. Its main head offices are located in Bentonville, Arizona. The company main competitors are BJ’s Wholesale Club, Costco Wholesale and Amazon Inc.

Walmart has three business segments namely: Sam’s Club, Walmart US, and Walmart International. The Walmart United States segment includes digital retail and retail store operations in the US. It also provides financial services and other products like prepaid cards, money orders, wire transfers, bill payment and check cashing.

The Sam’s Club division is composed of membership-only warehouse clubs and samsclubs.com. It offers auto buying, specialty services, pharmacy, hearing aid and optical centers, and battery and tire centers.

Walmart International segment has physical stores run by its subsidiaries in Canada, Mexico, Argentina, Chile, Brazil, China, Japan, India, Mexico and the UK. It also has African subsidiaries operating in Botswana, Lesotho, Ghana, Malawi, Kenya, Mozambique, Nigeria, Namibia, South Africa, Tanzania, Swaziland, Zambia and Uganda. In Central America, Walmart operates in Costa Rica, Guatemala, El Salvador, Nicaragua and Honduras.-CNN