Boston, MA 02/24/2014 (wallstreetpr) – Wal-Mart Stores, Inc. (NYSE:WMT) has reported its fourth quarter and full year results for the period ending January 31, 2014 that show an increase of sales by 1.4% to highs of $128.8 billion compared to the same period a year ago. The quarter was negatively impacted by currency exchange rate fluctuations that reached highs of $1.8 billion. Wal-mart sales growth has been a priority to the mega retail chain as the management tries to focus more on it being even stronger in the current fiscal year.
Wal-Mart Stores Inc. (NYSE:WMT) plans to continue investing aggressively in e-commerce to try and increase small store roll out in the US as can be seen in other countries. The company plans to allocate more capital to accelerate small store growth in the US. The combination of supercenters with small formats that are closer to consumers has been seen as the only way that Wal-mart will be able to increase its brand all over the world.
Fourth quarter result analysis
Wal-Mart Stores Inc. (NYSE:WMT) earnings per share for the fourth quarter from continuing operations came in at $1.60, that was a dip when compared to last year same quarter earnings of $1.67. Earnings per share for full year improved by 2% from $5.01 to $5.11. Net sales for full year increased by 1.6% or $7.5 billion to come in at a high of $473.1 billion with operating income for the quarter depreciating by 3.1% to come in at a low of $26.9 billion. Net sales for the full year was negatively impacted by $5.1 billion due to currency rate fluctuations.
Wal-Mart Stores Inc. (NYSE:WMT) membership and other income surged in the fourth quarter by 12.7% compared to the same quarter a year ago. Total revenue for the quarter came in at $129.7 billion an increase of $1.9 billion or 1.5% compared to the same quarter a year ago. Total revenue for full year also increased 1.6% to come in at $476.3 billion. Membership and other income for the full year surged by 5.6% to come in at $3.2 billion with consolidated net income reaching highs of $16 billion.
Q1 2015 Outlook
Wal-Mart Stores Inc. (NYSE:WMT) projects earnings per share for Q1 15 to be in the range of between $1.10 and $1.20 compared an EPS of $1.14 for the same quarter a year ago with full year earnings being in the range of $5.10-$5.45. The major concerns that Wal-mart has at the moment is the effect that government taxes and tighter credit will have on its consumers throughout the year.