Transcript for Walmart Reports $120 Billion in Revenue, Lowers Estimates
You lose. It's Thursday August 14 the markets in new Yorker open in today's big number 120. Billion dollars. That's the big number Wal-Mart is crowing about today -- total revenue rose to 120 -- from nearly 117. Billion last year. Hello I'm Michelle Franzen in New York the retail giant making headlines this morning and here break it all down for us is Yahoo! finance is Rick Newman hi Rick. Himself so Wal-Mart pulling in more than expected but only after the earnings forecast was lower. Yeah I think the bigger issue here is that Wal-Mart has lowered its forecast for profitability for the rest of the year. And one other thing which side the numbers today. Traffic at Wal-Mart stores has fallen four. Six or seven quarters and -- basically fewer people are just shopping and Wal-Mart. And what the Wal-Mart has been telling us for the last. Several quarters is that. If there's a pickup in consumer spending in -- Americans are starting to feel a lot better off they're sure not seeing it. And I think these numbers today tells the same story so. You know the people who shop at Wal-Mart obviously trying to save a buck they're trying to be -- And they're still under a lot of stress in this is what wal mart's number seven showing us for awhile now. So the numbers are good but behind there there's a back story there why -- Wal-Mart need to increase its online business. Well -- I mean it's no secret that shoppers are spending less time in physical stores and more time on line and of course Amazon. Is in the best position to capture those sales and Amazon is a very very aggressive competitor it's. It has been experimenting with same day delivery it's trying to get into everyday items. Paper goods -- -- even groceries and stuff I mean these are. These -- things that Wal-Mart Wal-Mart has you know been America's main supplier of for a long time so. People are changing their habits a little -- instead of you know making that weekly run to Wal-Mart and -- filling your trunk with. You know stuff you can store in the basement for a few weeks or months. People -- now starting to order the same stuff online and that this sort of super store business model is just not nearly as effective as the -- to be so Wal-Mart has to try some new things. So Rick how do you think investors will view these numbers this morning. They the stock looks like it's so flat may be down a little bit. Which well known that Wal-Mart is in the in the middle of kind of turnaround plan. They are doing things such as building some of these smaller express stores. They -- they've been saying for awhile -- it spend more to. Develop a cutting edge online site that kind of personalization. At other sites offer so I think investors are. -- -- they're showing some patients with Wal-Mart I mean this has been one of the most successful retailer in the world for a long time. And it's taking a while for Wal-Mart to adapt for the moment. Investors are not there's no sort of urgent -- on this stock issue to be waiting to see if Wal-Mart can turn this around but. We know that retailers that are committed to physical stores face face a lot of problems. It's just you know this is just not a retail world anymore -- -- world. So. You know that will come a point when investors say -- Wal-Mart it's time for -- shows some results here. Rick Newman from Yahoo! finance thanks for joining us. -- -- -- You of course can keep up with the latest headlines right here on abcnews.com. You've been watching the big number I'm Michelle Franzen in New York.
This transcript has been automatically generated and may not be 100% accurate.