Walmart Q4 Profit Misses Estimates; Lowers FY19 Sales Growth Outlook

Walmart Q4 Profit Misses Estimates; Lowers FY19 Sales Growth Outlook

The U.S. division reported online growth of 23 percent for the quarter and 44 percent for the year.

"We've got this tremendous advantage of having the stores and the supply chain that put us within 90% of U.S. customers within 10 miles", said McMillon.

Last month, Sam's Club began closing 63 USA clubs while turning a dozen of them into warehouses for digital sales, with the goal of speeding up deliveries. However, the company's sales haven't grown as fast as expected in these online subsidiaries, in part due to gaps in available inventory as well as issues with reaching out to the target demographic.

That's why slowing e-commerce growth was a major disappointment in the eyes of investors.

Though Walmart's sales last quarter topped projections, the results reflected a slowdown in online orders - a key metric in its battle to fend off Amazon. Creativity, decisiveness and speed are priorities.

Its shares ended Tuesday down $10.67 to $94.11, its biggest single-day drop in percentage terms since January 8, 1988. He also said he expects the company's e-commerce losses to be "about the same level" as a year ago. "It's really about providing more convenience to customers"., including Online Grocery, is and has been the key driver of our eCommerce growth and that will continue. We're making real progress putting our unique assets to work to serve customers in all the ways they want to shop, and I want to thank our associates for their great work this past year. Walmart's previous tax rate was 32.5 percent.

"The wound was a little self-inflicted in that they said they were going to draw down a little bit this quarter because they needed to do some technology".

At Walmart's Sam's Clubs, same-store sales rose 2.4 percent in the fourth quarter. "I think it's just the law of large numbers and it's a very hard retail environment out there. Those competitive pressures are not going to alleviate".

The news, announced Tuesday, overshadowed the discounter's better-than-expected sales at its established stores and higher customer counts as online services linked to its fleet attract more shoppers.

For the year, total revenue was $500.9 billion, an increase of $15.1 billion, or 3.1%, excluding currency. The firm operates discount stores, supermarkets, supercenters, hypermarkets, warehouse clubs, cash and carry stores, home improvement stores, specialty electronics stores, apparel stores, drug stores, convenience stores, and membership-only warehouse clubs; and retail Websites, such as and, as well as mobile commerce applications.

Meanwhile, with total revenue up $5.3 billion, or 4.1 percent, to $136.3 billion (excluding currency, total revenue rose $4.1 billion, or 3.1 percent, to $135.1 billion) Walmart Inc. posted a USA comparable-store sales increase of 2.6 percent and a 1.6 percent comp traffic gain.

The company said the strength was "broad-based" across all merchandise categories and that holiday sales were solid. During the same period in the previous year, the company earned $0.98 EPS. equities analysts anticipate that Wal-Mart Stores Inc will post 4.44 earnings per share for the current fiscal year.

Bentonville, Ark. - Walmart's chief executive laid out some of the improvements the company has made while reviewing fourth-quarter results this morning.

While still near four-year highs, yields have leveled off somewhat of late, as benchmark 10-year Treasury notes last fell 5/32 in price to yield 2.895 percent, from 2.877 percent late on Friday.

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