Wal-Mart Stores said profits rose 11 per cent in the fourth quarter of 2003 as bigger tax refunds and a rebounding US economy drove consumer spending.
For the fourth quarter ended January 31st, the world's biggest company by revenue said earnings rose to $2.7 billion, from $2.5 billion a year earlier. Wal-Mart said quarterly sales rose 12 per cent to $74.5 billion, beating Wall Street estimates.
The retailer reported moderate sales growth for the vital Thanksgiving-to-Christmas holiday season, but demand improved in January as cold weather across much of the United States sent shoppers out in search of coats and hats.
Last year, a sluggish holiday shopping season left Wal-Mart with heavy stockpiles of apparel, which it discounted heavily. This year the company was starting out with a much cleaner inventory, putting it in good shape for the spring.
With the exception of Germany, where it has not been profitable, Wal-Mart's international unit has been a big winner. In the latest quarter, that division recorded operating profit growth of 15.2 per cent, compared with a more modest 8.3 per cent gain at the larger U.S. Wal-Mart Stores unit.
In a very competitive holiday season that led to two toy retailers filing for bankruptcy, Wal-Mart said its toy sales were profitable and gross margin was better than it had been in the first three quarters.