Wal-Mart profits up 6.3 percent, top forecasts
May 16 10:14 AM US/Eastern
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Wal-Mart Stores, the world's biggest retailer, have reported a profit of 2.615 billion dollars in the first quarter, up 6.3 percent from a year ago.
The profit amounted to 63 cents a share, two cents ahead of Wall Street forecasts.
Revenues grew 12 percent to 8.47 billion dollars, also ahead of analyst estimates.
"We are very pleased with our start to this fiscal year. We continued to have record sales and earnings and our inventory performance was the best we have seen in many quarters," Lee Scott, Wal-Mart president and chief executive officer, said Wednesday.
"The success of this quarter was the result of our focus on three goals: driving sales, reducing costs and improving inventory management."
Looking ahead, Wal-Mart expects second-quarter earnings of 70 cents to 74 cents a share as US comparable-store sales rise two to four percent.
Wal-Mart's sales and profits have been growing at slower rates than those of rival Target Corp.
Wal-Mart has revamped stores and refashioned merchandise to compete for the better-heeled customer that Target has long enticed.
On Monday, Target turned in a higher first-quarter profit, but disappointed investors with thinner-than-expected margins.
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