U.S. business a bright spot for Walmart

NEW YORK » Wal-Mart Stores Inc.’s low-cost strategy during the holidays both helped and hurt its performance in the fourth quarter: The world’s largest retailer reported an almost 15 percent decline in profit, but its namesake U.S. business continued to draw in more shoppers.

During the period, Walmart guaranteed shoppers it would give them the lowest price on a given item, no matter when they bought it during the holiday season. That resulted in its first gain in customer counts in several years.

But those efforts also came at a cost. The company said that operating income growth for the quarter was slower than the rate of sales for Walmart’s U.S. business as gross profit margin declined.

Walmart’s results are considered a bellwether of consumer spending because the company draws nearly 10 percent of all nonautomotive spending in the U.S.

The discounter, based in Bentonville, Ark., said Tuesday that net income was $5.16 billion, or $1.50 a share in the three months ended Jan. 31. That compares with $6.05 billion, or $1.70 per share, in the year-ago period.

In the fourth quarter, Walmart’s U.S. namesake business posted its second consecutive quarterly gain in revenue at stores opened at least a year — an indicator of a retailer’s health. Revenue at stores open at least a year at its U.S. namesake business rose 1.5 percent. Overall, its U.S. business had a 2.1 percent gain in revenue at stores open at least a year, including a 5.4 percent increase at Sam’s Clubs.

Holiday spending pushes Macy’s net higher

NEW YORK » A strong holiday shopping season and hearty online sales pushed Macy’s Inc.’s fourth-quarter net income up 12 percent.

Macy’s, which runs upscale Bloomingdale’s as well as Macy’s stores, has been outperforming midprice peers such as Kohl’s Inc. and J.C. Penney Co.

Chairman, President and CEO Terry Lundgren called the holiday season "terrific." The company’s success over the holidays was crucial because the season can account for as much as 40 percent of a retailer’s annual revenue. The company also is reaping the benefit of tailoring its merchandise to local markets and locking up more exclusive brands.

Macy’s said it earned $745 million, or $1.74 a share, for the period that ended Jan. 28. A year earlier it earned $667 million, or $1.55 a share.

Home Depot’s net climbs as sales spike

NEW YORK » Home Depot Inc. said Tuesday that its fiscal fourth-quarter net income rose 32 percent as homeowners spent more on renovation projects in part due to the mild weather in the U.S.

Coping with prolonged weakness in the housing market, home-goods sellers like Home Depot have adjusted to the fact that fewer consumers are making large-scale home renovations by cutting costs and improving services such as online shopping. But the sales increase at the largest U.S. home-improvement retailer shows there may be pent-up demand for home improvement, even during the winter, and it offers a glimmer of hope amid the housing slump.

The company said it earned $774 million, or 50 cents per share, for the period that ended Jan. 29. That’s up from $587 million, or 36 cents per share, a year earlier. Quarterly revenue increased 6 percent to $16.01 billion.

Airline stocks tumble as fuel prices jump

United Continental Holdings Inc. and US Airways Group Inc. tumbled Tuesday in New York trading, dragging an industry index to the biggest drop in more than four months as jet fuel prices jumped. Jet fuel for immediate delivery in New York Harbor rose 1.4 percent to $3.29 a gallon, the highest since May 4. The Bloomberg U.S. Airlines Index plunged 6.4 percent, the most since Oct. 3.

United, the world’s biggest airline, fell 9.1 percent to $21.24 at the close in New York, while Tempe, Ariz.-based US Airways slid 11 percent to $7.89. Delta Air Lines Inc., No. 2 in traffic behind United, slumped 7.2 percent to $10.05.

Jet fuel is approaching last year’s high of $3.42 a gallon, the most since 2008, when the price reached a record $4.36.

Johnson & Johnson CEO will retire in April

TRENTON, N.J. » Johnson & Johnson’s longtime CEO, Bill Weldon, is retiring in April, following an embarrassing string of product recalls over more than two years that has cost the health care giant hundreds of millions of dollars and consumer trust.

The maker of Band-Aids and biotech drugs said Tuesday that Weldon will remain chairman of the board for the time being while ceding the chief executive post to Alex Gor­sky, head of the medical device and diagnostics business.

ON THE MOVE

Bank of Hawaii has announced the following promotions:

» Steven K. Kaneko to vice president and Kona branch manager in the Hawaii Branch Division from assistant vice president and relief branch manager. He joined the bank in 2001 as a business banking officer.

» Brenda G. MItchell to vice president and executive loan officer in the probate banking — residential loan services department from assistant vice president and executive loan officer. She joined the bank in 2002 as a residential loan officer.

PKF Pacific Hawaii has announced the following new hires:

» Manoj Samara­nayake as tax partner. He was previously vice president of tax and tax compliance director at Bank of Hawaii and has held positions at public accounting firms including Accuity and Price­waterhouse­Coopers’ Honolulu office.

» Cindy Fujii as tax senior manager. She was recently tax manager for Hawaiian Telcom and has also worked at PricewaterhouseCoopers’ Hono­lulu office.