Amidst FDI crusade, retail major Wal-Mart  has engaged the corporate government in yet another scam.Giving a major setback to already jolted Congress from the charges of corruption, the World's biggest retail company has revealed that company is investigating alleged violations of the US anti-bribery law in India.

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Amidst FDI crusade, retail major Wal-Mart  has engaged the corporate government in yet another scam.Giving a major setback to already jolted Congress from the charges of corruption, the World's biggest retail company has revealed that company is investigating alleged violations of the US anti-bribery law in India.The disclosure is likely to provide ammunition to political parties that are planning to corner the government on its decision to allow FDI in multi-brand retail when Parliament reconvenes next week for the winter session.Indian authorities are investigating claims that Wal-Mart Stores Inc. (WMT.N) violated foreign exchange rules when it invested $100 million in a domestic unit owned by its wholesale joint-venture partner, Bharti Enterprises, a law enforcement official said.A lawmaker first raised the allegations in a letter to the prime minister in early September, and the complaint was subsequently passed from one government department to another without action being taken.Earlier this year, The New York Times published a blockbuster story reporting that Wal-Mart had relied on bribes to build its fast-growing business in Mexico and that the company had then covered this practice up. In response to the paper's inquiries, Wal-Mart launched an investigation into what happened, which is ongoing.

And now, in an SEC filing, Wal-Mart has announced that it has expanded its bribery investigation to other countries, including China, India and Brazil.

Although many people feel that bribes are simply a cost of doing business in some countries, bribery would be a violation of the Foreign Corrupt Practices Act. It would also not be in keeping with the brand image Wal-Mart wants to project. So the findings of its investigation could lead to another splash of mud on Wal-Mart's image.

But does the investigation really matter to the stock price [WMT  68.03    -0.69  (-1%)   ]?

No, says Yahoo! Senior Columnist Michael Santoli.

Whatever price Wal-Mart will have to pay for violating the FCPA, the price will likely be small in relation to the company's profits. And the investigation is also old news that won't likely have an impact on on Wal-Mart's future results.

What Wal-Mart investors care most about are Wal-Mart's future earnings. And the reason Wal-Mart's stock has dropped in recent weeks, Santoli says.

This new allegation has given the opportunity to major party in opposition Bhartiya Janta Party (BJP) chances of attack.Taking the advantage of the situation, BJP has started to attack on Congress. A day after the enforcement directorate (ED) said that it will soon issue notices to US retail major Wal-Mart for alleged violation of forex laws of the country, finance minister P Chidambaram today said that a formal report is yet to be presented to him regarding the details of the investigation.Wal-Mart on Thursday reported that its investigation into violations of a federal anti-bribery law had extended beyond Mexico to China, India and Brazil, some of the retailer’s most important international markets. The disclosure, made in a regulatory filing, suggests Wal-Mart has uncovered evidence into potential violations of the Foreign Corrupt Practices Act, as the fallout continues from a bribery scheme involving the opening of stores in Mexico that was the subject of a New York Times investigation in April. The announcement underscores the degree to which Wal-Mart recognises that corruption may have infected its international operations, and reflects a growing alarm among the company’s internal investigators. People with knowledge of the matter described how a relatively routine compliance audit rapidly transformed into a full-blown investigation late last year — involving hundreds of lawyers and three former federal prosecutors — when the company learned that The Times was examining problems with its operations in Mexico.New York Times reports.

Wal-Mart is broadening an investigation into potential violations of U.S. anti-corruption laws by the chain's international operations. The probe started in Mexico, but Wal-Mart said it has added China, India and Brazil.American companies operating abroad are subject to the Foreign Corrupt Practices Act, a law that is intended to deter bribery but which has many legal gray areas. Just this week, the Justice Department tried to clarify critical portions of the FCPA -- to mixed reviews.

Enforcement Directorate is investigating allegations that Wal-Mart Stores violated foreign exchange rules when it invested $100 million into a domestic unit owned by its wholesale joint-venture partner.

The decision to Enforcement Directorate probe Wal-Mart comes after a member of Parliament wrote to the Prime Minister earlier this year, raising allegations of potential violations of investment rules, and the complaint was subsequently passed from one government department to another.

The MP had accused Wal-Mart of clandestinely and illegally investing $100 million in the multi-brand retail business of its wholesale joint venture partner, Bharti Enterprises, as early as 2010, before India allowed foreign companies to operate front-end stores.

BJP spokesperson Shahnawaz Hussain told to media that according to the new revelation by Wal-Mart the government's aim behind introducing FDI (Foreign Direct Investment) is not for the welfare of the people, but to earn money for themselves. It is very serious allegation and the government must answer to the people of the country.

"Congress will have to answer that why there is allegation of corruptions on each and every step taken by this UPA Government," said Hussain.

Taunting at the Congress' claims advocating FDI, he said, "The government is making statements, holding rally in favour of FDI in retail, and on the other hand Wal-Mart has alleged that they were asked money to allow FDI. We haven't ever thought that the government will go to this level."

Senior BJP leader Rajnath Singh said, "There is no shortage of resources either human or natural. But, the government is not interested in utilizing domestic recourses. As far the FDI is concerned, BJP will definitely oppose it. It will not only mar the employment in retail sector but also badly affect the farmers and economy of the country."

In view of Shiv Sena Supremo Balasaheb Thackeray's death, Prime Minister Manmohan Singh cancelled dinner with BJP leaders that was to be held today.The decision to cancel dinner at PM's residence was taken on BJP's leader Sushma Swaraj's request.

Bal Thackeray breathed his last on Saturday at around 3.30pm after protracted illness at his home ‘Matoshree’ in suburban Mumbai. His demise was announced by his doctor Jaleel Parkar.

Thousands of Shiv Sainiks had been standing in vigil outside his home in upscale Bandra East area of Mumbai for the last 72 hours as the news got out about Thackeray's failing health.

Thackeray had been keeping unwell for some time and had been under the care of a team of doctors from the Leelavati Hospital.

Dinner diplomacy was high on the agenda of leaders of the United Progressive Alliance (UPA), for after playing host to allies on Friday. The UPA is in search of BJP's support on the issue of FDI in retail ahead of the Winter Session of Parliament.

Congress on Saturday downplayed Trinamool Congress chief Mamata Banerjee's plans to bring in a no confidence motion against the government, saying it was ready for the floor test as it has majority in Lok Sabha.

"Congress is ready to face a no confidence motion. We have majority," party spokesperson Rashid Alvi told reporters soon after Banerjee, who had parted ways with UPA in September over FDI in retail and other issues, said her party will bring a no-confidence motion on the first day of the winter session.

At the same time, Alvi suggested that the Trinamool would not be able to bring such a motion without the support of "communal forces", a reference to BJP.

"Every party is within its right to bring any motion under Parliamentary rules. If Banerjee wants to bring in a no confidence motion, we have nothing to say. But at least 50 MPs are required to bring such a motion. It is a different matter if somebody brings it by joining hands with communal forces," he said.

He stressed that the government enjoyed majority and that the Lok Sabha elections will be held on time in 2014.

In response to a question on Manmohan Singh inviting BJP leaders for dinner tonight ahead of Winter session of Parliament which has now been cancelled in view of Shiv Sena leader Bal Thackeray's death, Alvi said the Prime Minister wants to build consensus on all issues.

"We have tried to build consensus on FDI because we think it is in the interest of the nation," he said.

The Indian Express reported that among those invited were senior BJP leader LK Advani, Leader of Opposition in the Lok Sabha Sushma Swaraj and her Rajya Sabha counterpart Arun Jaitley.

Amidst vociferous opposition by non-UPA parties, the dinner was seen as a last ditch effort by the Congress to ensure smooth functioning of the Winter Session.

The Monsoon Session had been washed out due to protests over corruption charges by the BJP.

The BJP is preparing to corner the government on issues like FDI in retail, corruption charges, hike in diesel price and cap on subsidised LPG cylinders during the Winter Session beginning on November 22.

The dinner invitation came in the wake of the Prime Minister's attempts to reach out to allies and outside supporters as the government faces the prospect of a motion entailing voting on FDI and even a possible threat of a No-Confidence Motion.

The Left parties have tabled a motion that will seek a vote on FDI. The main opposition BJP, its ally JD(U) as also Trinamool Congress, which parted ways with the UPA few months back on the issue, have also given notices.

Those from the Opposition who have given notices include Shatabdi Roy (TMC), Ramesh Bais, A T Nana Patil, Hansraj Ahir (all BJP) and Rajiv Ranjan Singh (JD-U).

To add to the government's discomfiture, sulking ally DMK has declined to disclose its stand on how it would vote either on such motions or the No-Confidence Motion, likely to be moved by Trinamool Congress.

On Wednesday, DMK chief M Karunanidhi said in Chennai that his party's stand on the FDI issue will be revealed later.

Asked whether DMK would support Left and some other parties' proposed resolution with provision for voting in Parliament on FDI, he had said the party's views would be made known after consultations with Parliamentary Party members.

The support of DMK, the second largest group in UPA with its 18 MPs in Lok Sabha, is crucial for the UPA in case of a voting on a motion.

At present, the government enjoys the support of about 265 MPs, including DMK, in a house of 545. With the support of Samajwadi Party (22) and BSP (21), the backing for the ruling coalition goes a little over 300, which is comfortable over the required 273 majority mark in Lok Sabha.

BSP and SP together or individually have not shown signs of withdrawing support so far.

Mayawati, who has hinted at the possibility of early polls, had remained vague on her party's stand on FDI issue after her lunch with the Prime Minister.

The CPI(M) on Saturday slammed the Congress in the wake of reports that the party was opposed to voting in Parliament on the motion of UPA government's decision to allow FDI in multi-brand retail.

"The Congress does not believe in democratic principles going by its reported opposition to voting on the motion tabled by the opposition parties for debate on the FDI in multi-brand retail during the winter session of parliament," CPI(M) Politburo member Ramchandra Pillai told reporters in Patna.

The Congress' opposition to division for voting on the FDI issue also indicated its assessment of the UPA government lacking majority in parliament, he said.

Pillai said that the CPI(M)-led left parties will persist with the demand on debate on FDI in retail in Parliament under the rule mandating voting and said that talks were going on with like-minded parties to muster support on the issue in the house and outside.

The left parties will also raise corruption issues like irregularities in the coal blocks' allotment, 2G scam and related matters during the winter session of Parliament as these issues could not be discussed and debated during the monsoon session, the CPI(M) Politburo member said.

Pillai further charged the UPA government with colluding with the corporates for sale of spectrum at an under-priced value during the recent auction and said that the latter did so with a motive to discredit the CAG.

The country did not get the fair price for the spectrum as the UPA government colluded with the corporates and gave away the precious resources at throwaway price to the bidders, he said.

According to media reports Wal-Mart has said that the company is making inquiries or investigations regarding allegations of potential Foreign Corrupt Practices Act ( FCPA ) violations in a number of foreign markets where they operate including India, China and Brazil.

"Since the implementation of the global review and enhanced anti-corruption compliance programs, the company has identified or been made aware of additional allegations regarding potential FCPA (Foreign Corrupt Practices Act) violations. When allegations are reported or identified, we, together with our third party advisors, conduct inquiries and when warranted, we open investigations," Wal-Mart said in a statement late on Thursday.

"We have inquiries or investigations regarding allegations of potential FCPA violations in a number of foreign markets where we operate regarding FCPA allegations, including but not limited to Brazil, China and India. This is in addition to the ongoing investigation in Mexico," the company said.

The disclosure, made in a regulatory filing, suggests Walmart has uncovered evidence into potential violations of FCPA, as the fallout continues from a bribery scheme involving the opening of stores in Mexico that was the subject of a New York Times investigation in April.

Internal probe unrelated to FDI lawsuits: Wal-Mart

Walmart's disclosure that it is investigating alleged violations of the US anti-bribery law does not necessarily mean that it has definitely paid bribes in China, India and Brazil, New York Times has quoted an unnamed source as saying. "But it did indicate that the company had found enough evidence to justify concern about its business practices in the three countries — concerns that go beyond initial inquires and that are serious enough that shareholders need to be told," the newspaper said.

It also said that the Justice Department and the Securities & Exchange Commission are also looking into the company's compliance with the anti-bribery law. The FCPA treats payment of bribes or offering inducements by US companies and individuals or even foreign companies listed on US stock exchanges as an offence. The law enacted over a decade ago was part of a global drive against corrupt practices and money laundering.

When contacted, a Walmart India spokesperson declined to comment on specific allegations until investigations are concluded by the company. "This investigation is unrelated to recently publicized public interest lawsuits related to claims that Walmart is in violation of FDI laws," the spokesperson said in an email to TOI. The BJP said the latest disclosure by the US retailer makes the issue of allowing FDI in multi-brand retail "murkier". "We need to have answers as to why the government is in a hurry to allow FDI in multi-brand retail. There are several questions which need to be answered," said BJP spokesperson Nirmala Sitharaman.



Wal-Mart, the world's largest retailer, has denied any wrongdoing. The allegations relate to the company's complex investment through debentures -- which could later be converted to an equity stake -- at a time when direct ownership by foreign firms was prohibited.

"Yes, the Enforcement Directorate has initiated an investigation into the allegations against Wal-Mart," a senior official, who declined to be named, told Reuters on Friday.

The Enforcement Directorate, an elite agency that falls under the finance ministry, investigates financial crimes.

"The probe is at an early stage and therefore (it is) difficult to say what the outcome will be," the official said.

News of the investigation comes at a bad time for the Congress Party-led minority government, which is preparing to do battle with opponents in parliament next week over its decision to allow foreign companies into India's retail sector. The furore could derail parliamentary proceedings.

Parties opposed to the new retail policy, which include some government allies, may use the investigation to fan suspicion among supporters against foreign retailers including Wal-Mart whose entry is seen threatening the livelihoods of local mom-and-pop store owners.

Arkansas-based Wal-Mart has repeatedly denied the allegations.

"The central government has sought certain information and clarification, which has been provided by us. We are not in a position to offer further comments as the matter is before the courts," a Wal-Mart spokesman said on Friday.

India liberalised its retail sector in mid-September to allow global superstores to buy stakes in Indian companies - one of a number of big-ticket reforms passed in September by Prime Minister Manmohan Singh to revive a sluggish economy.

Previously, foreign retailers were only allowed to invest in wholesale operations.

HEADACHE FOR WORLD'S LARGEST RETAILER

Wal-Mart was the most vocal advocate for the change and has said it expects to open its first retail store within 18 months.

M.P. Achuthan, a member of the Communist Party of India that opposes foreign direct investment in retail, accused Wal-Mart of investing $100 million as early as early 2010 in a multibrand retail business.

In September, Achuthan raised the issue in parliament, questioning Wal-Mart's role in Easyday stores, which are controlled by Bharti Enterprises, its partner in a wholesale joint venture.

The commerce minister answered that Wal-Mart, via its Mauritius arm, held debentures that are convertible into a 49 percent equity stake in Cedar Support Services, the company previously known as Bharti Retail Holdings that holds Easyday.

The law enforcement official confirmed that the Enforcement Directorate was looking at Cedar.

"The main part of this investigation will be whether they (Wal-Mart) offered a credit line. They have not made an equity investment directly, but even if they offered a credit line, you cannot do that," said Harminder Sahani, managing director at Wazir Advisors, a retail consultancy.

Wal-Mart's Indian partner, Bharti Enterprises, has also denied the allegation.

"We are in complete compliance of all regulations. All details have been shared with the relevant authorities," a Bharti Enterprises spokesman said.

The news came a day after Wal-Mart reported disappointing quarterly sales and as it announced internal inquiries or investigations into bribery allegations in Brazil, China and India - additions to its original probe in Mexico.

The Indian law enforcement official said the probe was being carried out under the Foreign Exchange Management Act (FEMA), which regulates domestic currency markets, including foreign direct investments and capital transactions.

The official said the agency had asked for documents on Wal-Mart's operations in India from the RBI and the Foreign Investment Promotion Board (FIPB), which clears foreign investment proposals.

"The way company affairs work in India, very little is seen as a criminal offense. So even if there are some violations, companies are usually asked to pay a penalty and they are allowed to carry on with their business," said Sahani of Wazir Advisors.

Indian Express reports:

On Thursday, the ED had said it has received a communication from the central bank to probe the investments in Wal-Mart and notices seeking documents related to financial investments and remittances will be sent to the retailer soon.

“I have read in the paper that ED is investigating Wal-Mart. But unless, a formal report is made to me, which is not every day, I would not have the details of investigation,” he told reporters at a media briefing.

The agency, which has registered a case under the Foreign Exchange Management Act, will also ask the commerce and industry ministry to furnish it with clearances that were given to the company to route the investment in 2010 in a subsidiary of Bharti ventures via a Mauritian arm.

As such, the world’s largest retailer posted on its website Thursday that it is investigating allegations of corrupt practices against it in foreign markets, including India.

In March 2011, the US-based company had started a worldwide review of its policies, practices and internal controls for Foreign Corrupt Practices Act compliance.

“We have inquiries or investigations regarding allegations of potential FCPA violations in a number of foreign markets where we operate regarding FCPA allegations, including but not limited to Brazil, China and India. This is in addition to the ongoing investigation in Mexico,” the company said in the statement.

The ED is conducting a probe on allegations that Wal-Mart put money into the domestic multi-brand retail chain despite a ban on foreign direct investment in the sector, a charge strongly denied by Bharti Enterprise, the joint-venture partner of the US retail company.

The Rs 455.8 crore investment by Wal-Mart in Cedar Support Services Ltd, a subsidiary of Bharti Ventures, had come under attack from CPI Rajya Sabha member MP Achuthan, who wrote to Prime Minister Manmohan Singh earlier, saying it was “illegal” and flouted FDI rules.

New York Times reports:

A person with direct knowledge of the company’s internal investigation cautioned that Thursday’s disclosure did not mean Wal-Mart had concluded it had paid bribes in China, India and Brazil. But it did indicate that the company had found enough evidence to justify concern about its business practices in the three countries — concerns that go beyond initial inquiries and that are serious enough that shareholders needed to be told.

Wal-Mart issued a statement confirming the new disclosures, and said it would be inappropriate to comment further on the new allegations until it had concluded the investigations. The Justice Department and the Securities and Exchange Commission, with Wal-Mart’s cooperation, are also looking into the company’s compliance with the antibribery law.

The Times reported in April that seven years ago, Wal-Mart had found credible evidence that its Mexican subsidiary had paid bribes in its effort to build more stores, a violation of the corrupt practices act, and that an internal investigation had been suppressed by executives at the company’s Arkansas headquarters. Wal-Mart has so far spent $35 million on a compliance programme that began in spring 2011, and has more than 300 outside lawyers and accountants working on it, the company said. It has spent $99 million in nine months on the current investigation.

Consequences of the expanding investigation could include slower expansion overseas and the identification of even more problems. The company said in the filing on Thursday that new inquiries had begun in countries “including but not limited to” China, India and Brazil. While the disclosure did not specify the nature of the possible bribery problems in the three countries, it “clearly will cause more scrutiny on every real estate project being considered, and one would think at the minimum it will slow down the process as more controls need to be passed through,” said Colin McGranahan, an analyst with Sanford C. Bernstein.

International growth is critical to Wal-Mart, the world’s largest retailer, and Brazil, India, China and Mexico make up the largest portion of the company’s foreign locations.
How Widespread Are Wal-Mart’s Bribery Problems?
Posted: Thursday, November 15, 2012 12:52 PM EDT
By: Michael Fowlkes

Earlier this year, Wal-Mart (WMT) came under pressure for bribery allegations in Mexico. The company has been doing an internal investigation into possible violations to the Foreign Corrupt Practices Act in Mexico, and it seems to have uncovered other violations as well.

In addition to possible violations in Mexico, the company is now investing issues in other countries, including but not limited to, China, India and Brazil.

We knew that this was coming. In May, Wal-Mart said it was looking at places other than Mexico, but thursday was the first time that it actually named countries where violations may have taken place.

Wal-Mart has long dominated the retail industry in America, but it has struggled to replicate its success internationally. The company has had a hard time growing its international presence because of the impact its massive stores and ultra-low prices have on local business owners.

In order to spur its expansion in Mexico, it is believed that Wal-Mart bribed local officials and then turned a blind eye to the actions when top executives became aware of what was taking place. Not only did Wal-Mart ignore the allegations when they first became aware of them, it actually appointed Michael Duke, who was the head of Wal-Mart's international division at the time, to be its CEO.

In many places around the world, bribery is normal part of business, but this does not excuse Wal-Mart’s actions. It is pretty clear that the company has violated the law, and should be punished as a result.

This story is still developing, and by the time all the facts come out, we expect to see violations in many countries around the world, not just the four that we are already aware of.


   

Michael Fowlkes is a financial writer who has been with the Fresh Brewed Media family since 2004. Over the course of his tenure with Fresh Brewed Media, he has worn many hats, including portfolio manager, options analyst, and writer. Michael received his undergraduate degree from Virginia Tech in Accounting and got his start in finance working as a stock trader for six years at Chase Investment Counsel in Charlottesville, Va. His articles typically cover big-picture events and forecasting what impact they will have on the stock market. In addition to writing for Fresh Brewed Media, Michael also wrote for AOL's BloggingStocks for three years, focusing most of his attention on the energy and technology sectors.

http://www.marketintelligencecenter.com/articles/242776


Wal-Mart Stores Inc. reported a 9 per cent increase in net income for the third quarter, but revenue for the world's largest retailer fell below Wall Street forecasts as its low-income shoppers continue to grapple with an uncertain economy.

The discounter issued a fourth-quarter profit outlook that fell short of Wall Street expectations, and the company's stock price slid nearly 4 per cent.

Wal-Mart is considered an economic bellwether because the retailer accounts for nearly 10 per cent of nonautomotive retail spending in the U.S. The company's latest results show that many low-income Americans — it's estimated that the typical Wal-Mart customer has an average household income of between $30,000 and $60,000, rents their homes and doesn't own stock — continue to struggle even as the housing and stock markets are improving.

The disappointing revenue comes as Wal-Mart, like other retailers, is preparing for the busy winter holiday shopping season in the U.S. next week. The period, which runs roughly from November throughout December, is a time when stores can make up to 40 per cent of their annual revenue. Wal-Mart has said that it plans to offer deeper discounts and a broader assortment of merchandise during this year's season to draw in shoppers.

"Macroeconomic conditions continue to pressure our customers," said Charles Holley, Wal-Mart's chief financial officer. "The holiday season is predicted to be very competitive but we are well prepared to deliver on the value and low prices our customers expect."

The disappointing revenue results come a year after Wal-Mart's U.S. namesake business turned a corner by reemphasizing low prices and restocking stores with thousands of basic items that it had gotten rid of in an overzealous bid to reduce clutter.

During the third quarter of last year, the division reversed nine straight quarters of declines in revenue at stores opened at least a year, which is considered a key measure of a retailer's health. The U.S. namesake business has recorded five consecutive quarters of gains since the division rebounded, including a 1.5 per cent increase in the third quarter.

But the third-quarter gain is just shy of the 1.8 per cent increase analysts polled by Thomson Reuters were expecting. It's also a slowdown in growth from the 2.2 per cent gain the business posted in the second quarter and the 2.6 per cent increase it had in the first quarter.

Analysts say that Wal-Mart's previous results had benefited from the increase in prices shoppers were paying for groceries due to inflation for some items, a trend that is now subsiding. They also say that Wal-Mart is facing tougher revenue comparisons from a year ago when its business first began to rebound.

Ken Perkins, president of Retail Metrics, a research company, said Wal-Mart's revenue is headed in the right direction. But he cautioned that the company will need to continue to keep prices low in order to compete with rivals that have stepped up discounting.

"Overall, it's a relatively good report," he said. "But it shows that its consumer is still struggling."

In the third quarter, Bentonville, Ark.-based Wal-Mart earned $3.63 billion, or $1.08 per share, in the quarter ended Oct. 31. That compares with $3.33 billion, or 96 cents per share, in the year-ago period.

Net revenue, excluding Sam's Club membership fees, rose 3.4 per cent to $113.2 million. Excluding the currency impact, net revenue would have been $114.9 million. Analysts were expecting $1.07 per share on net revenue of $114 billion.

Nearly all areas, including food and clothing, registered gains. However, the company's entertainment category, which includes gaming, suffered a decline, dragged down by price deflation. Part of the weakness is also due to the company's layaway business, which winds up deferring sales to the fourth quarter.

For the entire U.S. business, sales at stores opened at least a year rose 1.7 per cent, below the 2.1 per cent Wall Street estimate. At Sam's Club, the figure was up 2.7 per cent, below the 3.8 per cent increase Wall Street expected and the 4.2 per cent gain it posted in the second quarter.

The company said its business members at Sam's Clubs are being hurt by the economic downturn, and are switching to less-expensive chicken from beef. To boost sales, Sam's Club is increasing its offering of rotisserie chicken, and has reduced prices in several varieties of apples and beauty products.

"Our business members continue to experience economic pressure and uncertainty," said Rosalind Brewer, president of Sam's Clubs.

For the full year, Wal-Mart now said it expects earnings per share to be between $4.88 per share and $4.93 per share. It originally expected earnings per share of $4.83 to $4.93. For the fourth quarter, it forecasts earnings per share to be $1.53 per share and $1.58 per share. Analysts had expected $1.59 per share.

Separately, in a filing with the