Wal-Mart posted a higher quarterly profit and raised its full-year earnings forecast, but US same-store sales declined as shoppers remain under pressure in a weak economy.
Sales at US Wal-Mart stores open at least a year fell 1.3 per cent, the sixth consecutive quarterly decline at the world's largest retailer. Its discount stores have suffered from the company's missteps in terms of merchandise selection and promotion.
In addition, high unemployment has forced Wal-Mart's lower-income customers to cut back on even some essential items or to search out lower prices at dollar stores.
Wal-Mart said profit in the third quarter ended October 31st was $3.44 billion, or 95 cents a share, compared with $3.15 billion, or 82 cents a share, a year earlier. The latest results included a tax benefit of 5 cents per share.
Net sales rose 2.6 per cent to $101.2 billion.
Wal-Mart said it now expects fiscal 2011 earnings per share of $4.08 to $4.12, up from a previous forecast of $3.95 to $4.05, reflecting the tax benefit and an expectation for a solid operational performance in its fourth quarter.
Wal-Mart's British arm Asda this morning said it expects to create more than 7,500 jobs next year by opening new stores, expanding its home shopping service, and through its purchase of Netto UK shops.
Asda, Britain's second-biggest supermarket group behind Tesco, said it planned to employ up to twice as many people at each Netto store it converts, creating around 1,500 jobs.
Asda agreed in May to buy the British arm of Netto discount food stores for £778 million.
Britain's consumer affairs watchdog ruled in September it needed to sell on almost a quarter of the stores to win over competition regulators.
Reuters