Walmart Net Up 4.3 Percent in Fourth Quarter
February 22, 2011,
BENTONVILLE, Ark.-Walmart posted a 4.3 percent gain in net income, to $5 billion, in its fiscal fourth quarter ending Jan. 31.
An 8.9 percent gain in international sales drove Walmart's total net sales to $115.6 billion for the quarter, an increase of 2.5 percent. Net sales in the company's U.S. stores fell 0.5 percent in the quarter, including a 1.8 percent decline in U.S. same-store sales.
Reflecting Walmart's ever-wary eye on costs, selling, general and administrative expenses remained flat on a dollar basis and fell 34 basis points as a percentage of revenue, to 18.2 percent. Gross margin was flat at 25.1 percent.
For the entire fiscal year, net income finished at $15.4 billion, up 6.3 percent. Net sales rose 3.4 percent to $419 billion.
While "pleased" with Walmart's fourth-quarter and fiscal-year earnings, Mike Duke, president and chief executive officer, expressed disappointment with the company's U.S. sales in the quarter. Duke said Walmart is implementing initiatives to boost better results domestically, but said it will take time to bring positive results to same-store sales.