WalMart Stores Inc. said it's still pulling shoppers away from its main rivals and enjoying a rise in customer traffic as the world's largest retailer released better-than-expected fourth-quarter earnings Tuesday.
Still, WalMart is hardly immune from economic pressures. It issued a cautious earnings outlook as it feels the pinch from the stronger dollar in its international business, a trend officials said could hurt profits over the next three quarters.
Profit fell 7.4 percent to $3.79 billion, or 96 cents per share, in the quarter ended Jan. 31, dragged down by the strengthening dollar and a charge from settling labor lawsuits. That compares with $4.096 billion, or $1.02 per share, a year earlier.
Analysts expected 99 cents per share, excluding the after-tax charge for the settlement announced in December of 63 class-action wage and hour lawsuits. Excluding that, Wal-Mart earned $1.03 per share, which beat Wall Street estimates.
Total sales rose to $109.12 billion from $107.34 billion. Sales at stores open at least a year, a key indicator of a retailer's health, rose 2.8 percent in the quarter.
WalMart's U.S. sales rose 6 percent during the quarter, while business at its Sam's Club warehouse division was flat. Sales fell 8.4 percent at the international division, hurt by the lower value of currencies against the dollar.
No comments:
Post a Comment