Wal-Mart Stores Inc third-quarter sales rise 2.9 per cent
Wal-Mart Stores Inc reported a higher-than-expected profit as comparable sales at its US stores rose for the first time in seven quarters, helped by its small-format 'Neighborhood Market' stores and higher prices.
Wal-Mart's shares rose 2.2 per cent in premarket trading.
The world's largest retailer said overall US same-store sales rose 0.5 per cent in the third quarter.
Wal-Mart has been facing sluggish sales in the United States as its core low-income customers struggle with stagnant wage growth and higher taxes. A cut in government food stamp benefits has also reduced their spending power.
The company cut the top end of its full-year forecast for earnings from continuing operations to $5.02 per share from $5.15. It raised the lower end by 2 cents to $4.92.
The company said its forecast took into account higher health-care costs for its US employees, investments in e-commerce and a highly promotional holiday season.
Net profit attributable to Wal-Mart fell marginally to $3.71 billion, or $1.15 per share, for the quarter ended Oct. 31, from $3.74 billion, or $1.14 per share, a year earlier.
Total revenue rose to $119 billion from $115.7 billion.
Same-store sales at its Neighborhood Market stores rose about 5.5 per cent.
Analysts on average were expecting earnings of $1.12 per share on revenue of $118.32 billion, according to Thomson Reuters I/B/E/S.