However, US store sales grew 2.6 percent, above expectations and marking three consecutive years of US growth - an achievement in the current climate that no other US retailer can lay claim to, says Reuters. Sam's Club same store sales are forecasted to grow 2 percent, while e-Commerce sales are expected to grow 40 percent.
Still, despite the massive drop in Walmart stock on Tuesday, the company actually has a solid piece of good news for income investors. Excluding currency, total revenue was $135.1 billion, an increase of 3.1%. Consolidated net income fell 42.1% to $2.175 billion.
The company recorded a provisional benefit of $207 million for both the fourth quarter and full year as a result of the 2017 Tax Cuts and Jobs Act.
As for the fiscal year, Walmart's e-Commerce sales have increased 44 percent year over year.
At present, Walmart can not open retail stores in India on its own due to foreign direct investment (FDI) regulations in multi-brand retail. Last year, the retail behemoth brought in half a trillion dollars. "I think there's a lot more questions than there are answers".
"We're confident in our strategy to transform the company", Mr McMillon said.
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Total Q4 revenue stood at $136.3 billion, an increase of $5.3 billion, or 4.1%.
Other large investors also recently made changes to their positions in the company.
One of the reasons for the tumble was Walmart's US e-commerce results. Same-store sales at the company also grew 2.4 percent in the quarter, while traffic increased 4.3 percent. "We believe this is down to Walmart's focus on low prices plus better customer service, improved ranges, and better-selling environments". The bottom line is that even in an era of stiff competition, Walmart is becoming more and not less relevant to the American consumer. However, the company's sales haven't grown as fast as expected in these online subsidiaries, in part due to gaps in available inventory as well as issues with reaching out to the target demographic. Barclays set a $100.00 price objective on shares of Wal-Mart Stores and gave the company a "buy" rating in a research report on Monday, November 13th. The company said last October that it expects online sales to increase by about 40 percent in fiscal 2019, and McMillon reaffirmed the projection Tuesday. In addition to the new private-label collections, which were announced last week, he said Walmart could add to its digital native brand acquisitions beyond Bonobos and ModCloth.
Analysts are split on whether that will happen, with RBC analyst Scot Ciccarelli telling investors in a note, "It is hard to ignore the magnitude of the slowdown in e-commerce". "Our stores are executing better, we're innovating more, and customers are responding with higher sales and traffic", he said in an earnings call with investors yesterday.
Walmart's expenses were much higher a year ago as it instituted programs, like free shipping and mobile returns, to capture more online customers.
"There are many demographics, especially younger and professional segments, for whom Walmart is not the destination of choice online, This is a tough nut for Walmart to crack, and one that it can only break by more heavily marketing its services and proposition". However, Walmart needs to invest in evolving and adapting. "If it doesn't, it will become irrelevant".