U.K. and South African acquisitions help Walmart earnings rise in Q4
U.S.-based retail chain Walmart recorded a 5.8% year-on-year net sales increase to US$122.3 billion during the fourth quarter, partly driven by acquisitions of Netto stores in the U.K. and Massmart in South Africa.
In a release the company said the acquisitions had a positive impact of US$2.4 billion in net sales for the quarter which ended on Jan. 31, 2012.
Currency exchange rate issues set net sales back by US$1 billion, leading Walmart to estimate a 4.5% increase in net sales on a constant currency basis before acquisitions.
The quarter rise was more or less in line with the rise in net sales for the full year, which increased 5.9% to US$443.9 billion.
"We are pleased with Walmart’s earnings performance for both the fourth quarter and the full year," said Wal-Mart Stores president Mike Duke.
"Today, every segment of our business is stronger than it was a year ago, and we’re in a great position for fiscal year 2013.
"Walmart U.S. reported positive comps of 1.5 percent for the fourth quarter including positive comp traffic. This is now the second consecutive quarter of positive comp sales."
Duke said Walmart's price leadership was making a difference across the U.S. with core customers remaining cautious about finances.
"Walmart International delivered strong growth through both comp store sales and a record number of new units, including the acquisitions of Netto and Massmart.
"The leadership teams are focused on improving profitability, and our ‘Powered by Walmart’ initiatives will strengthen productivity and reduce expenses in our markets."