Wal-mart Reports Struggles Despite Higher Earnings, Revenue

Bentonville-based Wal-Mart posted its 7th consecutive quarter of falling same-store sales and missed Wall Street forecasts, casting a gloomy pall on consumer fortunes.

The world’s largest retailer said that its loss of sales to dollar stores in the U.S. impacted its operations more than expected.

For its fourth quarter, Wal-Mart recorded net income of $5.02 billion, or $1.41 per share, compared to last year’s comparable quarterly earnings of $4.82 billion, or $1.26 per share.

Overall quarterly sales climbed 2.5% higher to $115.6 billion, led by its international "growth engine." That figure was lower than analysts’ expectations of $117.7 billion.

Same-store sales, a key measure of retail economic health, fell 1.8% below last year’s quarterly levels.

“We are pleased with Walmart’s strong earnings performance for both the fourth quarter and the full year across our three operating segments. At the same time, we are disappointed by Walmart U.S. fourth quarter sales,” said Mike Duke, Wal-Mart Stores CEO.

Duke pointed out that under the leadership of President and CEO Bill Simon, Walmart U.S. is implementing a four-point plan designed to deliver better results. He acknowledged that it will take some time to see positive comparable store sales.

“Some of the pricing and merchandising issues in Walmart ran deeper than we initially expected, and they require a response that will take time to see results,” Duke explained. “There is no greater priority for Bill or me than getting sales back into positive territory.”

For the full year, Wal-Mart saw its sales rise to $418.95 billion, up 3.4% from the previous year when revenue topped $405.13 billion. Net income rose to $15.36 billion for the full year, a 6.3% rise from the previous year’s net of $14.45 billion.