Wal-mart results in-line with forecast

Wal-Mart, the world's largest retailer, has announced flat profits of $3.02 billion and slightly lower sales of $93.5 billion, down from $94 billion, for the first three months of this year compared with a year ago. ┬á For the current quarter, the world's biggest retailer forecast results roughly in line with analysts' expectations as it faces tough comparisons with a year ago, when it got a boost from customers spending tax rebate cash in its stores.┬á "We're pleased to report that fiscal year 2010 is off to a very good start," said Wal-Mart chief executive Mike Duke. ÔÇ£These results were achieved in the face of a very challenging global economy.┬á Analysts said Wal-Mart's results were impressive given the tough climate and show it is outpacing competitors like Target Corp and Costco Wholesale Corp, which have seen profits fall.┬á ÔÇ£We believe the improvements we've made in merchandising, marketing and operations in the U.S. and around the world are sustainable," Duke said on a recorded call. "This is not a short-term phenomenon."┬á Compared with some retailers, Wal-Mart has traded well during the recession as US consumers look for value-for-money products, and like supermarkets in the UK, Wal-Mart has benefited from the growing number of consumers cutting back on going out for meals as a means to save money. ┬á "As long as Wal-Mart continues to have the price leadership that they have and the store experience continues to improve from where it was a few years ago ... they'll keep many of these gains," said Barclays Capital analyst Robert Drbul.