Wal-Mart’s 4Q Net Income Falls 14.7%

Wal-Mart Stores Inc., the world’s largest retailer, saw fourth-quarter profit drop despite increased sales as it continues its push to be a low-price leader.

Reporting before the markets opened Tuesday, the Bentonville-based retailer posted net income of $5.16 billion, or $1.50 per share, for the quarter that ended Jan. 31, compared to $6.06 billion, or $1.70 per share, in the same period a year ago.

Still, the company beat the average earnings estimate of $1.45 per share from 25 analysts surveyed by Thomson Reuters.

Revenue rose 5.9 percent to $123.17 billion.

Wal-Mart, has seen its revenue increase for four straight quarters, but net income has fallen in the last two as it continues to cut prices.

“Our price leadership is making a difference across the United States, as many families are settling into a new normal,” president and CEO Mike Duke said in a news release. “Core customers remain cautious about their finances, and they rely on Wal-Mart’s [everyday low price] promise to help them manage through today’s economic challenges.”

All three of Wal-Mart’s divisions saw increased net sales in the quarter.

Wal-Mart U.S., the company’s largest division, reported net sales up 2.4 percent. Sales at stores open at least a year, considered a key indicator of a retailer’s health, rose 1.5 percent.

Wal-Mart International’s net sales rose 13.1 percent, aided by acquisitions in the U.K. and South Africa.

And net sales at Sam’s Club, Wal-Mart’s warehouse club division, were up 6.8 percent. Same-store sales at Sam’s Club grew 5.4 percent.

For the fiscal year, Wal-Mart posted earnings of $15.7 billion, or $4.52 per share, compared to $16.39 billion, or $4.47 per share, the previous year. Revenue rose 6 percent to $446.95 billion.

Wal-Mart’s shares were down $2.33, or 3.73 percent, at mid-morning, trading at $60.15 on the New York Stock Exchange. Shares have traded between $48.31 and $62.63 in the past year.