Wal-Mart Q4 net up 9.8% to $4b

WAL-MART Stores, the world’s largest retailer, said fourthquarter profit rose 9.8%, exceeding analysts’ estimates as the company discounted toys and consumer electronics to attract holiday shoppers. Net income in the three months ended January 31 rose to $3.94 billion, the Bentonville, Arkansas-based company said on Tuesday in a statement. Analysts surveyed by Bloomberg estimated 90 cents. Fourth-quarter sales at stores open at least a year gained 1.6% as Wal-Mart cut prices on items ranging from generic drugs to groceries. Chief executive officer H Lee Scott re-emphasised the company’s “lowprice” message after failing to lure consumers with exclusive lines of clothing. “If you look at Wal-Mart historically, they are known as being the low-cost retailer,” said Steven Baumgarten, an analyst at PNC Wealth Management in Philadelphia, with $54 billion in assets including Wal-Mart shares. “They have done a great job with that.” Profit a year earlier was $3.59 billion. Fourth-quarter sales increased 11% to $98.1 billion, less than the $98.5 billion on average estimated by analysts. Including membership fees and other income, revenue was $99.1 billion. Shares of Wal-Mart rose $1.03, or 2.1%, to $49.51 at 7:32 am in trading before US exchanges opened. They rose 12 cents to $48.48 February 16 in New York Stock Exchange composite trading. Last year, the stock declined 1.3%, compared with a 3.8% gain for Target , the second-largest discount chain.
courtesy:economictimes
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