Wal-Mart, the world's top retailer, said its fiscal fourth-quarter earnings fell by 15% as it cut prices in the US amid fierce competition for consumer dollars.
Wal-Mart posted $5.1 billion in net income for the three months ending January 31, compared with $6.1 billion in the year-ago period. Revenue rose 5.9% in the quarter to $123.2 billion, boosted in part by $2.4 billion from newly-acquired Netto stores in Britain and Massmart in South Africa.
But it also took a $1 billion hit from unfavourable currency exchange rates. Earnings excluding special items were $1.44 per share, missing the average analyst forecast of $1.46.
For the 2012 fiscal year, the Arkansas-based company reported earnings fell 4.2% from the prior year to $15.7 billion. Earnings per share for the year were $4.49, in line with market expectations. Full-year revenue rose 6% to $447 billion.
"We are pleased with Walmart's earnings performance for both the fourth quarter and the full year," Mike Duke, Wal-Mart Stores' president and chief executive, said in a statement.
"Today, every segment of our business is stronger than it was a year ago, and we're in a great position for fiscal year 2013," he added.
In the US, comparable store sales, sales at stores open at least a year, rose 1.5% in the fourth quarter, the second consecutive quarter of gains.
"Our price leadership is making a difference across the US, as many families are settling into a new normal. Core customers remain cautious about their finances," Duke said.
With the US economy staging a fragile recovery from recession and unemployment remaining persistently high, Wal-Mart has faced rising competition from growing chains of discount dollar stores, such as Family Dollar and Dollar Tree, and online retailers.
