Wal Mart Stores (WMT) has reported 17.86 percent fall in profit for the quarter ended Jan. 31, 2017. The company has earned $3,757 million, or $1.22 a share in the quarter, compared with $4,574 million, or $1.43 a share for the same period last year. On an adjusted basis, earnings per share were at $1.30 for the quarter compared with $1.49 in the same period last year. Revenue during the quarter went up marginally by 0.98 percent to $130,936 million from $129,667 million in the previous year period. Gross margin for the quarter expanded 16 basis points over the previous year period to 25.35 percent. Total expenses were 95.26 percent of quarterly revenues, up from 94.88 percent for the same period last year. That has resulted in a contraction of 38 basis points in operating margin to 4.74 percent.
Operating income for the quarter was $6,205 million, compared with $6,642 million in the previous year period.
"Were moving with speed to become more of a digital enterprise and better serve customers. We had a very solid fourth quarter with U.S. comp sales growth of 1.8 percent and U.S. e-commerce GMV growth of 36 percent. Our international business is consistently delivering solid sales growth in constant currency, and Sam's Club posted its best comp sales growth of the year. I want to thank our talented associates for their work. We have more work to do, but I'm pleased with our progress." Doug McMillon, president and chief executive officer, Wal-Mart Stores, Inc.
The company expects diluted earnings per share to be in the range of $0.90 to $1 for the first-quarter. For fiscal year 2018, the company expects diluted earnings per share to be in the range of $4.20 to $4.40.
Operating cash flow improvesWal Mart Stores has generated cash of $31,530 million from operating activities during the year, up 15.12 percent or $4,141 million, when compared with the last year. The company has spent $13,987 million cash to meet investing activities during the year as against cash outgo of $10,675 million in the last year. It has incurred net capital expenditure of $10,163 million on net basis during the year, down 6.26 percent or $679 million from year ago.
The company has spent $18,929 million cash to carry out financing activities during the year as against cash outgo of $16,122 million in the last year period.
Cash and cash equivalents stood at $6,867 million as on Jan. 31, 2017, down 21.11 percent or $1,838 million from $8,705 million on Jan. 31, 2016.
Working capital remains negative
Working capital of Wal Mart Stores was negative $9,239 million on Jan. 31, 2017 compared with negative $4,380 million on Jan. 31, 2016. Current ratio was at 0.86 as on Jan. 31, 2017, down from 0.93 on Jan. 31, 2016.
Cash conversion cycle (CCC) has decreased to 3 days for the quarter from 5 days for the last year period. Days sales outstanding were almost stable at 2 days for the quarter, when compared with the last year period.
Days inventory outstanding was almost stable at 20 days for the quarter, when compared with the last year period. At the same time, days payable outstanding went up to 19 days for the quarter from 18 for the same period last year.
Debt comes down
Wal Mart Stores has recorded a decline in total debt over the last one year. It stood at $45,938 million as on Jan. 31, 2017, down 8.19 percent or $4,096 million from $50,034 million on Jan. 31, 2016. Total debt was 23.10 percent of total assets as on Jan. 31, 2017, compared with 25.07 percent on Jan. 31, 2016. Debt to equity ratio was at 0.57 as on Jan. 31, 2017, down from 0.60 as on Jan. 31, 2016. Interest coverage ratio deteriorated to 10.61 for the quarter from 11.76 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
