Wal-Mart, the world’s largest retailer, revealed today (17 February) that sales gains slowed during its fourth quarter as consumer spending dropped in the face of the global economic downturn.
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Net sales in the three-month period ended 31 January edged up just 1.7% to US$107.99bn.
US sales at the group’s flagship Wal-Mart stores rose 6% during the quarter and US Sam’s Club sales remained stable. However, international sales dropped as 8.4% as currency exchange weighed on the result. On a constant currency basis, international sales would have gained 9% during the quarter, Wal-Mart emphasised.
The fourth-quarter performance lagged behind full-year sales gains, with net sales in the twelve-month period increasing by a total of 7.2% to $401.24bn, the company said.
Fourth-quarter income from continuing operations also weighed on Wal-Mart’s full-year results.
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By GlobalDataDuring the period, earnings were hit by currency exchange and a litigation settlement charge, dropping 7.7% to $3.79bn. The company said that, with these factors stripped out, income from continuing operations would have been “positive on a comparable basis”.
Income from continuing operations increased by 3% during the fiscal year to $13.25bn, up from $12.86bn the previous year.
Nevertheless, Wal-Mart said that its fourth-quarter performance was resilient.
“Our performance relative to competitors was exceptionally strong in the fourth quarter and throughout the year. We expect this momentum to continue,” CEO Mike Duke said.
“Wal-Mart remains well-positioned to continue to serve our customers in a challenging environment because of its strong price leadership,” Duke added.
