Walmart Stores, Inc. (NYSE:WMT) reported earnings today that beat the estimates by a penny, yet the stock is sliding due to weak revenue and a poor outlook on the future. The report states that U.S. sales in the coming holiday season will remain “relatively flat,” which is anything but acceptable to investors who want to see holiday revenue skyrocket each year.

In a statement from Mike Duke, CEO of the giant retailer, more details were given. He said that the “retail environment, both in stores and online, remains competitive.” This is the reasoning behind the weak guidance going into the next quarter. However, Duke also told investors that Walmart has “aggressive plans” in place to help bolster holiday sales. These plans include kicking off Black Friday sales on Thanksgiving day, a full day ahead of the normal schedule.

Citing economic uncertainty due to a softening U.S. economy, Duke went on to say, “Some customers feel uncertainty about the economy, government, (and) job stability.” The fear of being unemployed during the holiday season, or of losing savings due to unemployment could keep shoppers from the heavy spending they’re accustomed to at Christmas time.

Earnings Rundown

Walmart Stores, Inc. (NYSE:WMT) reported a net income of $3.7 billion, which is up 2.8 percent from the same quarter last year. Earnings per share rose 6.5 percent to reach $1.14, which was a penny more than was expected from the Arkansas based retailer.

The big downer during the earnings report was top line sales. Here, the company reported that consolidated net sales were up 1.6 percent to $114.9 billion, which equals a rise of $1.8 billion. Total revenue, including membership and other cash income, was $115.7 billion, which is a 1.7 percent increase from last year. Wall Street expectations were not met, as consolidated net sales on a “constant currency” basis would have been $116.2 billion. The expectation was $116.8 billion.

The stock dropped in early morning trading, but has recovered and is currently trading at $79.19, up $0.29 or .37 percent. The company, even with weak guidance given for the holiday season, is a strong retail corporation and will definitely live to fight another day. Investors remain confident in the retail giant and the future is anything but dim.

Disclosure: Author represents that he has no position in any stocks mentioned in this article at the time this article was submitted.