The stock of Wal-Mart Stores Inc (NYSE:WMT) closed at $79.86 gaining 0.31% in yesterday’s trading session. This provider’s e-commerce site as well as its inconsistent disclosures related to overseas divestitures recently drew significant interest from the Securities and Exchange Commission.
The company has been posing fierce competition to Amazon.com, Inc (NASDAQ:AMZN) and at the E-commerce sales at Wal-Mart U.S it grew 60% in the previous quarter. Currently, Walmart has boosted the number of products offered on the market place and they now stand at 67 million items and are supplemented by items from third party sellers like Vans shoes and Toms.
The comment letters coming from SEC outlined that the regulator had made the move to write to Brett Biggs who is a top official at Wal-Mart. It was in a bid to inquire about exactly how the provider got to earn and also account for revenues from the various third-party sales.
Over the years, Walmart had never in any single instance taken it upon itself to account for its revenue. Asides from that, SEC proceeded to inquire about who owned the inventory and the actual services that the company offered to its wide array of sellers.
The major retailers, Walmart included are still considering the idea of coming up with a proper evaluation of the impact of the new Financial Accounting Standards Board.
Walmart may soon be unveiling one of its most significant changes through carrying out a proper an in-depth evaluation of its contracts with vendors like those particular ones it offers support to in the market.
This company’s current assumption is that one stipulated in its response to SEC. Walmart is the only agent and that the third-party is the sole principal vendor in the transaction. Hopefully, the provider might end up boosting its top line and its cost of sales in the course of time.
The company’s spokesperson stated, “Walmart reported second-quarter net income of $2.90 billion, or 96 cents per share, in mid- August, down from $3.78 billion, or $1.21 per share, for the same period last year.”