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  Higher costs hit Wal-Mart profits in Q4US News.Net
 Wal-Mart, which saw its October-December quarter profits take a hit due to higher costs, is currently focusing on improving profitability by strengthening productivity and reducing expenses through its 'Powered by Wal-Mart' initiatives, President and CEO Mike Duke said in a statement. "Wal-Mart has now leveraged operating expenses for two consecutive years. We have a relentless focus on the productivity loop to drive down costs and pass those savings on to customers," Duke noted. The company said its international division delivered strong growth through both company store sales and a record number of new units, including the acquisitions of Netto and Massmart. Slowly losing its lowest-price edge perception among some consumers, Wal-Mart is planning to invest $2 billion to stay price competitive, Duke said. In the third quarter, the Bentonville, Arkansas-based retailer's sales came at a cost to profit after it didn't raise prices to pass on cost inflation in several categories. Wal-Mart U.S. reported positive comparable store sales of 1.5 per cent in the fourth quarter - the second consecutive quarter of positive comp sales. "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," the company statement stated Sam's Club company sales have also been consistently strong throughout the year, and the company expects the growth to continue into fiscal 2013. The retail giant reported net income of $5.16 billion or $1.50 per share for the fourth quarter, down from $6.06 billion or $1.70 per share in the year-ago quarter. Excluding a tax benefit, earnings per share from continuing operations missed analysts' expectations by two cents and quarterly revenues also missed estimates. Wal-Mart's revenues for the quarter increased 5.9 per cent to $123.17 billion from $116.36 billion in the same quarter last year. Total company net sales rose 5.8 per cent to $122.28 billion from last year. Net sales included $2.4 billion in sales from acquisitions in the U.K. and South Africa as well as a negative currency exchange rate impact of $1.0 billion. Looking ahead, for the first quarter, the company expects earnings from continuing operations in a range of $1.01 to $1.06 per share, and estimates Wal-Mart U.S. comparable store sales to range between flat and up 2 per cent. For fiscal 2013, Wal-Mart anticipates earnings from continuing operations to be between of $4.72 and $4.92 per share, while analysts are currently expecting $4.90 per share.
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