Wal-Mart Stores Inc. (NYSE: WMT) on Thursday released its four-quarter earning result, saying that net income fell 7.9 percent and cut its sales outlook for the year.
The world's largest retailer posts a profit of $4.57 billion, 7.9 percent lower than $4.97 billion a year earlier. Excluding some items, earning per share was $1.49, topping analysts’ estimates of $1.46 a share, helped by efforts to keep a lid on expenses.
Total revenue fell 1.4 percent to $129.7 billion, while Analysts had estimated $130.6 billion for the period. The company said the lower-than-expected revenue is blame for strong dollar effects. The total revenue would rose 2.2 percent to $134.4 billion after adjusting for currency exchange rates.
Although four quarter was the holiday season, the sales growth in U.S. same-store was slowing last quarter, rising just 0.6 percent, lower than analysts’ estimate of 1 percent. However, the number of people visiting Wal-Mart’s stores rose 0.7%, which means that people were spending less in the stores.
"We are seeing momentum in our Walmart U.S. business as we continue to lap positive comps, and our international business is healthy and growing," Walmart CEO Doug McMillon said in a statement. "We are pleased with fundamental trends that are allowing us to improve our stores."
Hurt by the currency headwinds, the retailer lowered its sales outlook for the year. The company expects sales growth to be “relatively flat” in 2016, compared with its previous guidance of 3 to 4 percent growth. The company said that the previous guidance didn’t adjust for the strong dollar effects.
Wal-Mart has been suffering for slower growth in the recent years. The stock fell 29 percent last year. But it still rebounded 7.8 percent in 2016 despite a tumbling market.
Wal-Mart shares fall 4.14 percent to 63.37 at 12:50 p.m. in New York.