Walmart reports jump in 4Q profits on higher US sales

NEW YORK: Walmart reported a jump in fourth-quarter profits yesterday 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 instore 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. — AFP