Wal-Mart Stores yesterday (Thursday 18 February) reported a 7 per cent increase in earnings for the year ended 31 January to US$14.2bn, compared with US$13.42bn the year earlier, according to a company statement.

However, net sales for the fiscal year grew by just 1 per cent to US$405bn due to an unfavourable currency exchange.

On a constant currency basis, net sales for the fiscal year would have been US$9.8bn higher, the retailer said, increasing 3.4 per cent to approximately US$414.8bn.

International net sales exceeded US$100bn for the first time during the course of the year.

In the fourth quarter, meanwhile, Walmart said its net sales totalled US$112.8bn, up 4.6 per cent from US$107.9bn during the same period in 2009.

“Walmart’s exceptional earnings for the fourth quarter and the full year exceeded our expectations,” explained Mike Duke, Wal-Mart Stores president and chief executive officer.

“These results reflect the ongoing underlying strength of our business and our strategies to improve shareholder value through our priorities – delivering growth, leveraging expenses and improving returns.

“We successfully shifted the productivity loop into higher gear,” Mr Duke added. “The diligent way we managed our businesses and tight control of our costs resulted in the company leveraging operating expenses for the fourth quarter. We plan to grow expenses slower than the rate of sales in the new fiscal year.

Walmart added more than 34m ft2 of selling space this year, with more than half of the growth taking place outside of the US.

This year, the company said it expects continued strong growth from its international operations.

US sales, meanwhile, are set to be more challenging in the first quarter, as the Walmart US network cycles through strong year-over-year comparisons and deflation.

That said, Mr Duke assured that the retailer remains focused on growing top line sales, and expects improvement in the US as the year progresses.

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