Wal-Mart’s online sales jump 29%

The nation’s largest retailer keeps working to make headway against the largest online seller.

Wal-Mart Stores Inc. drew more shoppers to its namesake stores in the U.S. and its online sales soared 29% in its fiscal fourth quarter, which covers the crucial holiday shopping season. That’s an indication its efforts to lower prices and improve Web services are helping it compete better against Amazon.com Inc.

Wal-Mart has been trying to improve its online operations to challenge Amazon, which accounted for 33% of total U.S. online sales last year, according to the research firm Euromonitor. Wal-Mart moved into second place last year ahead of EBay Inc., accounting for 7.8% of online sales, up from 7.4% in 2015.

However, Wal-Mart reported Tuesday that its fourthquarter earnings fell 18% as it spent money on online upgrades and stores. Total sales were hurt by a stronger U.S. dollar, which is making the company’s international business more challenging.

Wal-Mart also said it has seen sales weaken at the beginning of the first quarter, in part because of a slowdown in tax refunds. It warned that any tax on imported goods, as in a proposal that Republicans in Congress have floated, would raise prices and hurt shoppers.

The Bentonville, Ark., company earned $3.76 billion, or $1.22 a share, in the three months that ended Jan. 31. That compares with $4.57 billion, or $1.43, in the year-earlier quarter. Excluding certain items, earnings per share were $1.30. Sales excluding membership fees rose 0.8% to $129.75 billion.

Analysts had expected earnings of $1.28 a share on revenue of $131.13 billion, according to FactSet.

Wal-Mart shares rose 3% to $71.45 on Tuesday.