Walmart shares (WMT) plunged more than 4 percent Thursday morning after the company reported profits fell 8.2% to $3.03 million in the third quarter, citing investments in e-commerce and labor. Diluted earnings per share were 98 cents compared to last year’s $1.03.
Still, revenue rose 0.7% to reach $118.2 billion, up from $117.4 billion, and Walmart U.S. comparable store sales increased 1.2% in the U.S., driven by a 0.7% increase in foot traffic. Globally, e-commerce sales surged 20.6%. However, net sales in Walmart’s international business fell 4.8%. Looking ahead, the company raised its full-year outlook for adjusted profit to between $4.20 and $4.35 a share, up from previous guidance of $4.15 to $4.35 a share.
New and existing licenses pumped up Global Brands Group’s revenue by 15 percent to $1.8 billion in the six months ended Sept. 30, while adjusted net profit (which excludes acquisition-related costs) nearly quadrupled to reach $44 million, compared to $10 million for the same period last year. The company’s EBITDA increased 44 percent to $179 million. However, because of new deals such as a licensing agreement with Kenneth Cole in June, operating costs rose 12.6% to $578 million in the first half of the year.
Delta Galil’s acquisition of 7 For All Mankind, Splendid and Ella Moss has begun to bear fruit, despite continued softness in the U.S. market. The company said Tuesday that sales grew 4 percent to $296.6 million in the third quarter of 2016, from $284.6 million a year earlier, thanks to strong growth in Europe and Israel. In addition, net profit jumped 31 percent to $17.7 million, compared to $13.4 million last year, and diluted earnings per share were 69 cents versus 52 cents. Despite uncertainty surrounding the Trans-Pacific Partnership, Delta Galil is on track to open new seam-free and cut-and-sew factories in Vietnam in Q4.