Wal-Mart Stores hits $13.4 billion in 2008 net income

It’s good to be the king of retail.

Wal-Mart Stores Inc. announced early Tuesday (Feb. 17) morning that its total revenue for 2008 (Feb. 1, 2008 – Jan. 31, 2009) was $405.6 billion, up 7.1% over 2007 revenue.

Net income for the year was $13.4 billion, up 5.2% over the $12.73 billion posted in 2007.

However, the company’s fourth-quarter revenue and net income was pressured by the troubles in the national economy. It’s net income in the quarter was $3.79 billion, down 7.4% from the fourth quarter of 2007.

Total revenue in the fourth quarter was $109.11 billion, up just 1.6% over the same quarter of 2007.

Wal-Mart officials, as they almost always are, were pleased with the financial results.

“Wal-Mart recorded the strongest sales result in its history in the fourth quarter, with $108 billion in sales,” said Mike Duke, Wal-Mart president and CEO. “Our performance relative to competitors was exceptionally strong in the fourth quarter and throughout the year. … We finished the year with a strong balance sheet, record free cash flow of $11.6 billion and great inventory management.”

Duke succeeded Lee Scott as president and CEO on Feb. 1.

The company also said it projects sales for the Jan. 31 to May 1 period to increase between 1% and 3% over the same period in 2008.

Key items in the company’s fourth quarter, beginning with the company’s third-quarter financial report, include:

Feb. 10
Wal-Mart officials announced the reduction of up to 800 jobs from its corporate offices in Bentonville. The company employs around 14,000 in Northwest Arkansas, and employs about 2.3 million worldwide. Layoffs are coming from the retailer’s real estate, apparel and health and wellness areas, spokesman David Tovar told the AP.

Feb. 5
Wal-Mart posted a 2.1% increase in January same-store — stores open at least a year.  Retail Metrics reported that comparable-store sales nationwide dropped 1.8% in January. The decline was better than the 2.3% dip expected by market watchers, but still follows a December decline of 0.9% and a 1.8% November dip.

Dec. 23
The legal team at Wal-Mart Stores announced that it and plaintiffs’ counsel for 63 wage and hour class action lawsuits would settle the actions out of court. Under the agreements, the total will be at least $352 million, but no more than $640 million. A $250 million after-tax charge will hit the company’s fiscal fourth-quarter earnings as a result of the settlement.

Dec. 9
Wal-Mart agreed to pay up to $54.25 million to settle a wage and hour class action lawsuit. The lawsuit, Braun et al. vs Wal-Mart, included about 100,000 current and former Wal-Mart employees in Minnesota.

Nov. 21
Wal-Mart Stores President and CEO Lee Scott announced he would step down after eight years at the helm of the world’s largest retailer. Mike Duke, previously the vice chairman of Wal-Mart’s international division, assumed the title of president and CEO effective Feb 1. Scott continues to serve as chairman of the company’s executive committee.

The Wal-Mart board of directors also promoted Eduardo Castro-Wright, 53, to vice chairman of Wal-Mart Stores Inc., effective immediately.  He will continue to work as president and CEO of Walmart U.S.

Nov. 13
Wal-Mart posted third-quarter sales of $97.63 billion, up 7.5 percent over the $90.82 billion in the 2007 period. Net income in the quarter was $3.13 billion, up almost 10 percent over the same quarter in 2007.

For the first nine months of 2008, Wal-Mart sales totaled $293.24 billion, up 9.4 percent over the same period in 2007. Net income in the nine months was $9.6 billion, up an impressive 11.2 percent.