Wal-Mart Snaps 99-Quarter Streak

Wal-Mart Stores Inc.’s fiscal fourth-quarter earnings are expected to fall as much as 11 percent, breaking a streak of 99 consecutive quarterly increases.

Wal-Mart, the world’s largest retailer, announced last month that earnings for the quarter ended Jan. 31 would be 40 cents to 42 cents a share, compared with 45 cents in the year-ago period.

The company will report its results on Tuesday.

The Bentonville, Ark.-based retailer said its first quarterly decline in almost 25 years is the result of lower holiday sales, a narrower gross margin, severe winter weather and higher costs.

Although sales slowed toward the end of the year, revenue is expected to rise about 13 percent for the full year to $93.6 billion from $82.5 billion.

“Sales are up but there has been a deterioration of profit margins,” said analyst Joseph Ronning of Brown Brothers Harriman & Co.

Ronning said Wal-Mart must stabilize its margins to meet its goal of increasing sales and earnings by about 16 percent during the next three years.

Jay Fitzsimmons, Wal-Mart’s senior vice president for finance, said Thursday the company is “comfortable” with analyst estimates that earnings for the fiscal first quarter ending April 30 will rise to 25 cents a share from 24 cents a year earlier.