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Walmart U.S. comp-store sales up 1.8%

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Company continues to boost its e-commerce business

Walmart U.S. comp-store sales up 1.8%

BENTONVILLE, Ark. — Walmart’s U.S. business accelerated in the fiscal fourth quarter, with domestic same-store sales posting their biggest increase since 2012. It was the 10th consecutive quarter of same-store sales growth for Walmart, which also said global e-commerce sales surged during in the three months ended January 31.

Walmart said it earned $3.76 billion, or $1.22 per share, in its fourth quarter, compared to $4.57 billion, or $1.43 per share, a year ago.

Earnings were hobbled by a strong U.S. dollar, which has put a crimp on its international business, which accounts for about a quarter of its business. Spending on its stores and its e-commerce platform also weighed on fourth-quarter financial results.

“We’re moving with speed to become more of a digital enterprise and better serve our customers,” chief executive officer Doug McMillon said in a statement.

U.S. comps were boosted by strength in apparel, health and wellness, and grocery, among other categories, according to the company. Sales of electronics, media and gaming were soft.

Customer counts rose 1.4% in the U.S. business in the fourth quarter, marking the ninth consecutive quarter of gains.

Online sales were boosted by the recent acquisition of Jet.com and the continued rollout of its online grocery service. U.S. e-commerce sales jumped 29% during the quarter.

Comparable sales at Sam’s Club rose 2.4%, excluding fuel.

Net sales in the company’s international division rose 3% in the quarter, excluding currency fluctuations. Comps were up in 10 of Walmart’s 11 international markets, with its U.K. operations continuing to struggle against low-cost supermarket rivals.

For fiscal 2018, Walmart forecasts per-share earnings of between $4.20 and $4.40. In the current quarter, the company expects profits of between 90 cents a share and $1 per share.

Walmart reiterated its plans to slow its new store openings and invest in e-commerce, improving the shopping experience for customers. The company is working to make customer service friendlier and faster. It has invested $2.7 billion in higher wages and training for workers in a bid to retain employees.


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