In fourth-quarter reports released today, Wal-Mart Stores Inc.’s profits surged 9.8 percent to $3.94 billion or 95 cents a share, while Home Depot Inc.’s profits plunged 28 percent to $925 million or 46 cents a share, including 4 cents per share in executive severance costs. The building-supply company ousted CEO Robert Nardelli seven weeks ago.
Wal-Mart beat the 90 cent forecast of analysts surveyed by Bloomberg News, as the retail giant pitched itself as the lowest-priced holiday destination. Sales for the quarter ended Jan. 31 rose 11 percent to $98.1 billion, with international operations growing 30 percent. Same-store sales grew 1.6 percent.
Home Depot – dragged down by last year’s 13-percent drop in housing construction, and by a loss of market share – lagged expectations of 51 cents per share, Bloomberg said.
Total sales for the quarter ended Jan. 28 rose 4 percent to $20.3 billion – 2.5 percent short of the $20.8 billion analysts had predicted. Retail sales fell for the first time in four years, dropping 2 percent to $17.4 billion, as older stores saw their third quarter of sales declines.
Home Depot said it may sell or spin off its wholesale unit, which accounts for 12 percent of sales. And Frank Black, the new CEO, said in a conference call that he will focus on regaining market share.
For the full company reports, go to investor.walmartstores.com or ir.homedepot.com.
