Wal-Mart Stores, Inc. said net sales for the fourth quarter ended Jan. 31, 2009 were $107.99 billion, an increase of 1.7% from $106.21 billion in the fourth quarter last year. Income from continuing operations for the quarter was $3.792 billion, a decrease of 7.7% from $4.11 billion in the fourth quarter last year. Without a litigation settlement charge and the effect of unfavorable currency exchange rates, income from continuing operations would have been positive on a comparable basis.


 

Reported diluted earnings per share from continuing operations (“reported EPS”) for the fourth quarter of fiscal year 2009 were 96 cents, exceeding the company’s most recent guidance of 91 cents to 94 cents. The underlying diluted earnings per share from continuing operations (“underlying EPS”) were $1.03. Underlying EPS represents
reported EPS in accordance with GAAP, adjusted for charges from the settlement of 63 U.S. class action wage and hour lawsuits (the “litigation charge”) of approximately $255 million on an after-tax basis for the fourth quarter.

 

Last year, Wal-Mart earned $1.03 per share from continuing operations in the fourth quarter, which included a net charge of approximately 2 cents per share for real estate transactions and certain restructuring of its Japanese operations.


Net sales for the fiscal year were $401.24 billion, an increase of 7.2% over fiscal year 2008. Income from continuing operations increased 3.0% to $13.25 billion, up from $12.86 billion in the prior year. Reported EPS for fiscal year 2009 was $3.35, up 6.0% from $3.16 in the prior year. Underlying EPS was $3.42, excluding the litigation charge.

“Wal-Mart recorded the strongest sales result in its history in the fourth quarter, with $108 billion in sales,” said Mike Duke, Wal-Mart Stores, Inc. president and chief executive officer. “We achieved this through the hard work of our associates, helping our customers save money so they can live better.


“Our performance relative to competitors was exceptionally strong in the fourth quarter and throughout the year. We expect this momentum to continue,” Duke said. “We finished the year with a strong balance sheet, record free cash flow of $11.6 billion and great inventory management. Our company created approximately 63,000 jobs worldwide this year, including more than 33,000 in the United States. In addition, Wal-Mart remains wellpositioned to continue to serve our customers in a challenging environment because of its strong price
leadership.”

Reported International sales were negatively affected by the lower value of currencies versus the U.S. dollar. On a constant currency basis (assuming currency exchange rates remained the same as the prior year), International sales increased 9.0% in the fourth quarter and 11.6% for the full fiscal year.

 

Reported International operating income also was negatively affected by the lower value of currencies versus the U.S. dollar. On a constant currency basis (assuming currency exchange rates remained the same as the prior year), International operating income increased 5.1% in the fourth quarter and 10.2% for the full fiscal year.

 

The company expects reported EPS to be between 72 cents and 77 cents for the first quarter of fiscal year 2010, and between $3.45 and $3.60 for the full year.

 

“Our guidance reflects the strength of our underlying business and global economic conditions,” said Tom Schoewe, Wal-Mart Stores, Inc. executive vice president and chief financial officer. “It assumes that currency exchange rates will remain relatively the same as they were at the end of our 2009 fiscal year, which would have a negative impact on our year-over-year comparison of fiscal 2010 EPS of approximately 13 cents per share.”