Walmart rode strong general merchandise sales to beat Wall Street estimates in its fourth quarter, led by comparable sales gains at the Walmart U.S. and Sam’s Club divisions.
Company net income was $4.24 billion, or 53 cents per diluted share, versus $5.25 billion, or 65 cents per diluted share, in the year-previous quarter. Adjusted for one-time events, earnings per diluted share were 74 cents versus 66 cents in the year-before period, Walmart maintained.
A Zacks Investment Research analyst consensus estimate called for earnings per adjusted diluted share of 73 cents and revenues of $190.05 billion.
Net sales were $188.91 billion and total revenue was $190.66 billion versus $178.83 billion and $180.55 billion, respectively, in the year-prior period, the company noted. Operating income was $8.71 billion versus $7.86 billion in the period a year earlier, while adjusted operating income was $8.57 billion versus $7.76 billion.
At Walmart U.S., comparable sales were up 4.6% with transactions up 2.6% and average ticket up 2% year over year. Net sales were $129.22 billion versus $123.52 billion in the year-past quarter. Operating income and adjusted operating income were $6.95 billion versus $6.52 billion in the year-past period.
Sam’s Club comps were up 4%, excluding the effects of fuel revenue, with transactions up 5.3% and average ticket down 1.3% year over year. Net sales were $23.76 billion versus $23.1 billion in the year-past quarter. Operating income and adjusted operating income were $596 million versus $574 million in the year-past period.
For the full fiscal year, company net income was $21.89 billion, or $2.73 per diluted share, versus $19.44 billion, or $2.41 per diluted share, in the year previous. Adjusted earnings per share were $2.64 versus $2.51 in the year before, Walmart reported.
Net sales were $706.41 billion and total revenue was $713.16 billion versus $674.54 billion and $680.99 billion, respectively, in the year prior, the company indicated. Operating income was $29.83 billion versus $29.35 billion in the year earlier, while adjusted operating income was $31.1 billion versus $29.5
Guidance for the current fiscal year was for a net sales increase of 3.5% to 4.5% and adjusted earnings per share of $2.75 to $2.85.
In a conference call, John Furner, Walmart’s new president and CEO, said general merchandise sales were strong in the fourth quarter, “up low single digits for Walmart U.S.” Furner characterized the customer approach to spending as “choiceful.”
He went on to say that the majority of Walmart’s share gains came from households making more than $100,000. As for households earning below $50,000, Furner said the company continues to see wallets are stretched with many people spending paycheck to paycheck.
At Walmart U.S., e-commerce sales gained 27%, with 35% of store-fulfilled orders delivered in less than three hours, John David Rainey, Walmart’s CFO, said in the call. He also said that, in the fourth quarter, cook and dine, fashion and home decor grew more than 40% on the company’s marketplace.
In announcing the financial results, Furner said, “The pace of change in retail is accelerating. It’s exciting. And our financial results show that we’re not only embracing this change; we’re leading it. For our customers and members, the future is fast, convenient, and personalized.”
