Penny-pinching shoppers boost Wal-Mart profit

(Reuters) - Wal-Mart Stores (WMT.N: Quote, Profile, Research) posted better-than-expected quarterly profit on Tuesday as penny-pinching U.S. shoppers scoured its discount stores for low prices on necessities like food to offset tough economic conditions.

"We know that the economy remains a critical factor in this new fiscal year," said Lee Scott, CEO of the world's largest retailer, in a statement. "Customers were more cautious in their spending in January."

For the first quarter, it forecast sales at its U.S. stores open at least a year, a key retail gauge known as same-store sales, to be flat to up 2 percent, citing the "challenging" economic environment.

Net income rose 4 percent to $4.096 billion, or $1.02 per share, for its fiscal fourth quarter ended January 31, from $3.94 billion, or 95 cents per share, a year earlier.

The most recent quarter's results included charges of 3 cents per share for dropped real estate projects and a restructuring charge for its Japanese operations, and a 1 cent per share benefit from the sale of certain real estate properties.

Excluding the items, Wal-Mart reported earnings of $1.04 per share, above analysts' average estimate of $1.02 per share, according to Reuters Estimates.

 

Read more at Reuters