Wal-Mart Stores today reported lower quarterly earnings and cut its sales outlook due to a stronger dollar and recent store closures, sending its shares down nearly 4%.
The world's largest retailer said sales at US stores open at least a year rose 0.6% in the fourth quarter - which ended on January 31 0 from a year earlier.
This was their sixth quarterly gain in a row, but it missed market expectations for a rise of 1%.
For the current quarter, Wal-Mart said it expected a US same-store sales increase of 0.5%, a slowdown from the year-earlier rise of 1.1%.
The retailer also said it expected net sales to be flat in its new fiscal year, down from a previous forecast for 3-4% growth.
Analysts said that the tepid sales forecast is troubling because it comes despite big investments in workers' wages and sprucing up the stores.
Wal-Mart said its fourth-quarter net income fell 7.9%to $4.57 billion, or $1.43 a diluted share.
Excluding a charge for closures and other items, earnings of $1.49 per share exceeded the analysts' average estimate of $1.46, according to Thomson Reuters.
Wal-Mart last month announced plans to close 269 stores globally, including 154 in the US and 115 in Brazil and other Latin American markets.
Costs to boost employees' wages and renovate stores have weighed on profits.
Wal-Mart has also been investing heavily to build out its e-commerce infrastructure as it grapples with fast-growing online rival Amazon.com - another factor pinching margins in recent months.
