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US-RETAIL-EARNINGS-WALMART
Walmart reports jump in 4Q profits on higher US sales
NEW YORK, Feb 19, 2019 (BSS/AFP) – Walmart reported a jump in fourth-quarter
profits Tuesday behind higher sales at US stores and an increased e-commerce
business.
The world’s biggest retailer, which has been adapting its US stores to the
digital era by adding more in-store pickup of smartphone orders, reported
profits of $3.7 billion in the quarter ending January 31, up nearly 70
percent from the year-ago period.
The jump was accentuated because the company’s profits in the year-ago
period were weighed down with $1 billion in costs associated with paying off
debt early.
Revenues were up 1.9 percent at $138.8 billion.
Comparable sales at US stores increased 4.2 percent during the quarter.
Walmart’s American namesake stores account for around two-thirds of overall
sales.
The strength of this division helped offset lower sales in Walmart
International and Sam’s Club, a wholesale chain.
The company, often seen as a rival to Amazon in the retail big leagues, now
offers grocery pickup at more than 2,100 of its 4,755 US stores and delivery
at nearly 800 locations.
E-commerce sales increased 43 percent.
“We had a good year,” said Walmart Chief Executive Doug McMillon. “Progress
on initiatives to accelerate growth, along with a favorable economic
development, helped us deliver strong comp sales and gain market share.”
Walmart’s results translated to earnings per share of $1.41, above the
$1.33 expected by analysts. Revenues also topped estimates.
Shares jumped 4.8 percent to $104.75 in pre-market trading.
BSS/AFP/SR/1845 HRS