Tomahawk, WI 08/12/2014 (Basicsmedia) – Wal-Mart Stores, Inc. (NYSE:WMT) is set to announce its quarterly earnings at the back of declining sales in the international market as well as a decline in same-store sales in North America. It is high time according to many analysts that the company generated growth in any form, in order to counter the decline it has been experiencing in the recent years. The company according to, Burt Flickinger, of Strategic Resource Insight Group has only been growing by less than 3% with its stock gaining only $3 over the past 14 years.
“International is really struggling. They are struggling with mass market acquisition in Africa; they are struggling with South America, they have struggled throughout Asia CNBC’s has reported today. Wal-Mart Stores, Inc. (NYSE:WMT) overall has only grown less than 3%, and the stock has only gained about $3 in the last 14 years,” said Mr. Flickinger in an interview on CNBC.
Wal-Mart Stores, Inc. (NYSE:WMT) cash flow at the moment according to Flickinger is good despite the company being value trapped because of poor leadership in terms of running its international business. One major concern for the retail store is the fact that it’s U.S same-store sales has been struggling for five consecutive quarters.
Flickinger advices investors to run away from the retail segment of the market with the exception of luxury and some specialty dominant segments that are well led and with great growth prospects going forward.
“Cash flow is good, but the company is value trapped where it has been for a long time because it does not have the right leadership to run the business worldwide. U.S has been struggling with negative same-store sales for five consecutive quarters even with a gift they got from Target and still they can’t be positive. Investors should really run from retail with the exception of luxury, some of the specialty categories dominant segments that are well led” said Mr. Flickinger.
Wal-Mart Stores, Inc. (NYSE:WMT) is also facing another big challenge in the form of e-Commerce where consumers prefer doing their shopping online and getting their goods delivered on their doors rather than having to walk into stores.