Tuesday February 20, 8:22 am Eastern Time
Wal-Mart Profits Rise 4.5 Percent
BENTONVILLE, Ark. (Reuters) - Wal-Mart Stores Inc. (NYSE:WMT - news), the
world's largest retailer, on Tuesday reported a 4.5 percent increase in fourth-quarter profits,
topping forecasts despite a lackluster holiday selling season that tempered earnings growth.
Net income in the quarter, ended Jan. 31, rose to $2.004 billion, or 45 cents a diluted share, compared with $1.917 billion, or
43 cents a share, in the same quarter a year-ago.
Wall Street analysts polled by First Call/Thomson Financial had expected Wal-Mart to earn 44 cents a share.
Total sales in the fourth quarter rose to $56.556 billion, up 10 percent from a year-ago. Sales at stores open a least a year, a
key measure of performance, rose 3.1 percent in the quarter.
``It was a good year but a year that was not quite up to our high Wal-Mart expectations, Lee Scott, Wal-Mart president and
chief executive, said in a statement. In a difficult economic environment, we will spend almost $9 billion in capital expenditures
and add approximately 8 percent to our retail square footage.''
A slowing U.S. economy -- specifically higher interest rates, higher energy costs and falling U.S. stock markets -- took a bite
out of consumer spending during the holiday season. Wal-Mart, like other many other retailers, saw sales growth slow from the
red-hot pace seen in recent years.
Net sales for the year rose 15.9 percent to $191.329 billion, Net income for the fiscal year increased 17.1 percent to a record
$6.295 billion, or $1.40 per diluted share, up from $5.377 billion, or $1.20 earnings per diluted share, for the prior fiscal year.
Operating profit for the company's Wal-Mart Stores segment rose 1.5 percent from a year-ago in the fourth quarter to $2.765
billion. The SAM'S Club warehouse unit reported operating profit of $294 million, an increase of 8.5 percent over the $271
million recorded for the similar period a year ago.
The company's International segment had an operating profit of $490 million, representing an increase of 8.9 percent from a
year ago.
Shares of Wal-Mart, which operates about 3,100 stores in the United States and 1,072 stores internationally, ended at $52.36
in Friday's trade on the New York Stock Exchange. The stock, a component of the Dow Jones industrial average, has
underperformed the index by about 5 percent in the last 52 weeks.
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