Wal-Mart Stores Inc. (NYSE: WMT) reported fourth-quarter and fiscal year 2015 results before markets opened Thursday. The retailing giant posted adjusted diluted earnings per share (EPS) of $1.61 on total revenues of $131.6 billion, which includes membership fees in Sam’s Club. In the same period a year ago, Wal-Mart reported EPS of $1.60 on revenues of $129.7 billion. Fourth-quarter results compare also to the Thomson Reuters consensus estimates for EPS of $1.54 and $132.36 billion in revenue.

Full-year EPS totaled $5.07 on revenues of $485.7 million, compared with EPS in 2013 of $5.11 on revenues of $476.3 billion. Analysts were looking for EPS of $4.99 on revenues of $486.62 billion.

On a GAAP basis, Wal-Mart reported quarterly EPS of $1.53, which included a negative impact of $0.05 related to wage and hour litigation and a charge of $0.03 per share related to store closures in Japan.

The company’s CEO announced that approximately 500,000 U.S. employees will receive a pay hike in the first half of the 2016 fiscal year, raising the hourly wage to at least $1.75 above the current federal minimum wage of $7.25, which becomes effective in April. By February 1, 2016, current associates will earn at least $10 an hour.

Wal-Mart said it expects to invest about $0.20 per share over the new fiscal year in its new wage structure, additional staff training and educational programs. Another $0.06 to $0.09 per share is targeted at investments in the company’s e-commerce initiatives. Foreign currency exchange rates are forecast to have a negative impact of $0.10 per share in 2016.

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To take some of the sting out of the lower earnings growth, Wal-Mart also announced an increase to its annual dividend from a current $1.92 per share annually to $1.96 per share.

Fourth-quarter U.S. same-store sales, both including and excluding fuel sales, rose 1.5% at the company’s supercenter and discount stores. Same-store sales in the company’s Sam’s Club stores were up 2%, excluding fuel, and down 0.4% including fuel sales. Same-store sales at the Neighborhood Market stores rose approximately 7.7% in the quarter, and total U.S. net sales rose 4.1%. Wal-Mart has now posted a U.S. same-store sales increase in two consecutive quarters.

Internationally, net sales fell 3.9% in the quarter and fell 0.3% for the full year. In the United States, net sales rose 3.1% for the full year, and Sam’s Club stores posted a net sales increase of 1.5% year-over-year.

For the first quarter of its 2016 fiscal year, Wal-Mart forecast EPS in a range of $0.95 to $1.10, compared with actual EPS of $1.10 in the first quarter last year and the consensus estimate for $1.14. For the full year, the company forecast EPS in the range of $4.70 to $5.05, compared with a consensus estimate of $5.19.

Walmart’s CEO said:

We have work to do to grow the business. We know what customers want from a shopping experience, and we’re investing strategically to exceed their expectations and better position Walmart for the future. Our first priority is to run great stores and clubs. We will continue to integrate our physical locations with a great e-commerce and mobile commerce business.

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E-commerce sales boosted quarterly U.S. same-store sales at Walmart and Sam’s Club stores by approximately 0.3% and 0.4%, respectively. E-commerce sales rose 22% year-over-year in fiscal 2015.

The 2016 earnings estimates are lower than analysts’ consensus and will weigh on shares in Thursday’s trading. Paying employees more is not likely to suit many investors.

Walmart’s shares traded down about 2.6% in early trading Thursday morning, at $84.05 in a 52-week range of $72.27 to $90.97. Thomson Reuters had a consensus analyst price target of around $85.80 before the results were announced.

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