2018.02.2023:41:00UTC+00Walmart Shares Tumble on Weaker Holiday Online Sales

Walmart shares tumbled after posting weak online sales for the Christmas period and issuing a disappointing annual profit forecast.

In the three months to December, online sales were 23 percent higher. However, the increase was less than half the growth seen in the prior quarter and down from the same period in 2016.

Shares in the world's biggest retailer declined more than 10 percent to $94.11. This year through Friday's close, the stock has risen by 6.1 percent.

The retailer reported its online revenue clocked in at $11.5 billion in 2017, but it suffered losses on the said sales. CEO Doug MCMillon said e-commerce losses would be “about the same” for the current fiscal year. He said that the firm was making progress in its efforts to be at the same level with Amazon and other competitors.

Under its transformation strategy, Walmart will spend more on Walmart.com and reduce spending on marketing for its Jet.com website, which targets younger and more affluent shoppers.

Despite higher-than expected sales growth at Walmart's U.S. stores, which came in at 2.6 percent, net profit declined 42 percent to $2.2 billion.

Walmart expects earnings of $4.75 to $5 per share this financial year, excluding some items, against the estimate of $5.13 by Wall Street.