Wal-Mart, the world's largest retailer, has reported a 7% rise in quarterly profit as discounts drew US shoppers looking for bargains.
While Wal-Mart said the year was off to a 'solid start', it indicated that results for the current quarter could miss Wall Street estimates as it faces a tough economic environment, higher transport costs and customers who are under increasing financial pressure.
'Customers are faced with results of a tougher economy, higher gas prices, food inflation and the increase in the overall cost of living,' said Eduardo Castro-Wright, head of Wal-Mart's US operations.
Net profits rose to just over $3 billion, or 76 cents per share, in the first quarter to the end of April. The results were in line with forecasts.
At the end of January, Wal-Mart slashed prices on thousands of items by up to 30% to win sales from cash-strapped US shoppers. In the quarter, net sales rose 10% to $94.12 billion.
Sales at US stores open at least a year, known as same-store sales, rose 2.9%. International sales jumped 22% to just under $24 billion.
