Wal-Mart Stores Inc (NYSE:WMT) reported a 4.2% increase in third quarter revenue, driven by a jump in online sales and demand following hurricanes in the US.
Revenue rose to US$123.2bn in the quarter, with e-commerce sales up 50% on the back of efforts to improve its online business amid tough competition from Amazon. Wal-Mart's US business sales rose 4.3% while its international stores increased 4.1% and Sam’s Club climbed 4.4%.
Comparable sales at US stores, excluding fuel, grew 2.7%, compared with a 1.2% increase a year ago. Including fuel, US comparable sales edged up 3% following a 1.1% rise last year.
However, profit fell to US$1.75bn, or 58 cents a share, compared with US$3.03bn, or 98 cents a share a year ago due to charges for paying down debt early and the settlement of a foreign-bribery probe. Adjusted earnings per share stood at US$1.0.
Wal-Mart said it was close to settling the long-running investigation and would take a record a US$283mln accrual charge as talks with the Justice Department have "progressed."
Profit margins also came under pressure as it lowered prices to compete.
But the company raised adjusted profit outlook for the year ending in January. It expects adjusted earnings per share ranging from $4.38 to $4.46.
"We expect top line growth going forward to be led more by comp sales and e-commerce with less emphasis on new units in the US," chief financial officer Brett Biggs said.
"We're prioritising e-commerce, technology, supply chain and store remodels over new stores and clubs."
Shares rose 4.36% to US$93.75 in US pre-market trading and added 10.9% in the regular session to climb to US$99.62 each. .