Wal-Mart said fourth-quarter profit would have been higher if not for unfavorable exchange rates. The world's biggest retailer still beat expectations with $3.8 billion in quarterly earnings, or 96 cents a share, compared with $4.1 billion, or $1.02 a share, the year before.
The company expects a negative impact this year as well if the dollar remains at the same level it was at the end of fiscal 2009.
Currency Impact on Sales
The company said international sales declined 8.4% in the fourth quarter and rose 9.1% for the full year. "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."
Currency Impact on ProfitThe company said operating profit from international business fell 14.3% in the quarter and rose 4.6% for the 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."
Currency Impact on OutlookThe company said it expected earnings per share of between $0.72 and $0.77 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."
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV