Walmart U.S. Same-store Sales Improve For Second Straight Quarter

Walmart reported lower diluted net income in its fourth quarter than in the previous year, but will likely trade the smaller profit for its increased traffic in the U.S. market.

The Bentonville-based retail giant posted fourth quarter earnings of $5.194 billion, or $1.50 per diluted share, compared to $5.022 billion, or $1.70 per diluted share, one year ago.

Revenue for the world’s largest retailer topped $123.169 billion during the quarter, an improvement over the $116.360 billion posted in the previous year’s fourth quarter.

For the year, Walmart’s revenue exceeded $446.95 billion, up 6%, with profits rising 2.7% to $15.766 billion, or $4.52 per diluted share.

“We are pleased with Walmart’s earnings performance for both the fourth quarter and the full year,” said Mike Duke, Wal-Mart Stores, Inc. president and CEO. “Today, every segment of our business is stronger than it was a year ago, and we’re in a great position for fiscal year 2013.”

Walmart’s international division and Sam’s Club operations continued to impress, but company officials were focused on highlighting increases in its U.S. same-store sales during the holiday shopping season.

For the second quarter in a row, the retailer saw positive comp store traffic, up 1.5% in the 13-week period ended Jan. 27, 2012. Walmart previously reported 10 quarters of declining same-store sales followed by last quarter’s small increase in same-store traffic.

“Walmart U.S. reported positive comps of 1.5 percent for the fourth quarter including positive comp traffic. This is now the second consecutive quarter of positive comp sales,” Duke said. “Our price leadership is making a difference across the United States, as many families are settling into a new normal. Core customers remain cautious about their finances, and they rely on Walmart’s EDLP [everyday low prices] promise to help them manage through today’s economic challenges.”

Walmart’s U.S. chief Bill Simon noted that the positive U.S. results was not specific to any particular region to the company.

“All three Walmart U.S. geographic units delivered positive comps, reinforcing that our plan is working and resonating with customers. Our stores have greater price leadership, broader assortment, and improved on-shelf availability. The combination of these factors contributed to positive traffic,” said Simon. “We invested in price in the fourth quarter and will continue to do so through this fiscal year, so we can pass savings on to customers.

The company forecast Walmart U.S. comp sales for the 13-week period from Jan. 28 through Apr. 27 to range from flat to positive 2%.

The timing couldn’t be better for Walmart’s improved metrics. The Bentonville retail giant celebrates its 50th anniversary this year.

“Our company leveraged expenses for both the quarter and the full year,” said Duke. “In fact, Walmart has now leveraged operating expenses for two consecutive years. We have a relentless focus on the productivity loop to drive down costs and pass those savings on to customers. And as I look forward to our 50th anniversary this year, I see tremendous opportunities still ahead for our company and our shareholders.”