US retail giant Wal-Mart has reported a lower than expected quarterly profit and cut its full-year earnings forecast, saying its customers remain under economic pressure.
Earnings rose to $3.1 billion, or 76 cents per share, in the second quarter to the end of July, from just over $2 billion, or 50 cents per share, a year earlier, when the company took a charge for selling its German stores. Underlying earnings per share were 72 cents, below analysts' forecasts of 76 cents.
Chief executive Lee Scott blamed the disappointing performance on economic pressure around the world.
'It is no secret that many customers are running out of money toward the end of the month,' he said, blaming higher fuel prices, interest rates and utility costs.
With more than 127 million customers visiting a US Wal-Mart store or a Sam's Club warehouse location in America every week, the company is considered a barometer of the health of the nation's retail sector.
But Wal-Mart has been struggling with slowing US sales growth and announced plans earlier this year to cut the number of US supercentres it will open.
For the full year, the company said it expected earnings of $3.05 to $3.13 per share from continuing operations, down from an earlier view of $3.15 to $3.23. Analysts were expecting $3.16.
