Wal-Mart Sees 4Q, Fiscal Year Gains
by February 21, 2013 10:58 am 106 views
Wal-Mart Stores Inc., the world’s largest retailer, saw fourth-quarter profit rise 8.6 percent, beating its own estimated increase.
Reporting before the markets opened Thursday, the Bentonville-based retailer posted net income of $5.61 billion, or $1.67 per share, for the quarter that ended Jan. 31, compared to $5.16 billion, or $1.50 per share, in the same period a year ago.
The company beat the average earnings estimate of $1.57 per share from 21 analysts surveyed by Thomson Reuters, as well as Wal-Mart’s own predictions of $1.53 to $1.58 per share.
Net sales rose 3.9 percent to $127.1 billion.
The retailer said in a news release it returned $13 billion to shareholders through dividends and share repurchases in fiscal 2013.
Wal-Mart’s shares were up $4.11, or 3.05 percent, at mid-morning Thursday, trading at $71.32 on the New York Stock Exchange. Shares have traded between $57.18 and $77.60 in the past year.
“Wal-Mart topped off a really good year with a solid fourth quarter,” president and CEO Mike Duke said in the news release. “Wal-Mart U.S. was a key driver of our 5 percent [fiscal year] net sales increase.”
Duke said the company will continue to focus on key areas, including improved returns for Wal-Mart International and investing in global e-commerce.
Wal-Mart U.S., the company’s largest division, reported net sales up 2.6 percent. Sales at stores open at least a year, considered a key indicator of a retailer’s health, rose 1 percent. That figure doesn’t include fuel sales.
Wal-Mart International’s net sales rose 6.9 percent.
And net sales at Sam’s Club, Wal-Mart’s warehouse club division, were up 3.4 percent. Same-store sales at Sam’s Club grew 2.3 percent, also excluding fuel sales.
For the fiscal year, Wal-Mart posted earnings of $17 billion, or $5.02 per share, compared to $15.7 billion, or $4.52 per share, the previous year. Net sales rose 5 percent to $466.11 billion.