Wal-Mart profit rises 7 percent
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Tue, 13 May 2008 11:05:05 GMT |
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NEW YORK (Reuters) - Wal-Mart Stores Inc , the world's largest retailer, reported a 7 percent rise in quarterly profit on Tuesday as discounts drew U.S. shoppers looking for bargains on necessities like food and pharmacy items.Net income rose to $3.02 billion, or 76 cents per share, in the first quarter ended on April 30, from $2.83 billion, or 68 cents per share, a year earlier.The results matched the analysts' average forecast, according to Reuters Estimates.Consumers are seeking out Wal-Mart's low prices, especially for basic items like groceries, shampoo and cleaning supplies, as the U.S. economy falters and prices of food and fuel soar.The economic downturn comes as Wal-Mart has gotten back to the basics, trumpeting its low prices and slowing its aggressive expansion plans, to improve results at its existing U.S. stores.At the end of January, Wal-Mart slashed prices on thousands of items by up to 30 percent to win sales from cash-strapped U.S. shoppers.In the quarter, net sales rose 10 percent to $94.12 billion. Sales at U.S. stores open at least a year, a key retail gauge known as same-store sales, rose 2.9 percent.For the second-quarter, Wal-Mart forecast earnings per share of 78 cents to 81 cents. Analysts on average are expecting 81 cents.Wal-Mart shares have jumped 22 percent this year, while smaller rival Target Corp is up almost 7 percent and the Standard and Poor's Retail Index <.RLX> is down 1 percent.(Reporting by Nicole Maestri; Editing by Lisa Von Ahn)
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