logo-loader
Walmart Inc

Asda's first quarter stumble ends seven-quarter run as Walmart eyes IPO

Earlier this week, parent company Walmart admitted it was “seriously considering” a public listing for Asda

asda
Leeds-based grocer points to challenging backdrop in the UK

Asda’s winning run of growth over the preceding seven quarters came to an end at the start of 2019 as its merger with Sainsbury’s also fell apart.

Not helped by the later timing of Easter this year, Asda’s like-for-like sales slipped 1.1% in the three months to March 31, following a rise of 1% in the fourth quarter of last year.

READ: Sainsbury's and Walmart's Asda abandon merger after competition watchdog rejects deal

“Against a challenging backdrop in the UK, Asda comp sales declined with the Easter flip, but transactions were positive as customer experience continued to improve,” said Brett Biggs, chief financial officer of parent company Walmart.

He said Asda was “making progress on key strategic priorities”, pointing to improved price competitiveness and increased sales of own-brand products.

READ: US private equity giant KKR weighing up bid for Walmart-owned Asda

Following the blocking of the Sainsbury’s deal by the UK competition authorities, Walmart Inc (NYSE:WMT) has been mulling a potential spin-off of the UK-based grocery arm.

Earlier this week, the Walmart board admitted it was “seriously considering” a public listing for Asda, though admitting it would “take years”.

Quick facts: Walmart Inc

Price: $111.67

Market: NYSE
Market Cap: $318.84 billion
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Full interview: Katoro Gold to accelerate battery metals plan following gold...

Louis Coetzee says Katoro Gold PLC’s (LON:KAT) deal for its gold licences in Tanzania should be considered more a re-positioning than a disposal. It’s part of a re-focusing of the strategy towards battery metals, he adds. Katoro will retain a royalty on production from the Imweru and Lubando...

3 hours, 51 minutes ago

2 min read