DOW JONES NEWSWIRES Wal-Mart Stores Inc.'s (WMT) fiscal first-quarter earnings rose 10% on stronger-than-expected revenue and same-store sales in its key U.S. stores that rose for a third straight quarter. The company's namesake stores in the U.S. showed a 2.6% increase in same-store sales in the latest period, topping the company's own forecast, as both customer traffic and the average ticket increased. Same-store sales at its Sam's Club warehouse shops, meanwhile, jumped 5.3%. "In a highly competitive retail environment, Walmart U.S. is increasing price separation across categories and driving increased traffic to both the grocery and general merchandise areas of our stores," said Chief Executive Mike Duke. The gains come as the company's core lower income customers are grappling with high gasoline prices and a still-soft jobs market that have moved many consumers to keep a tight watching on spending. For the quarter ended April 30, Wal-Mart reported a profit of $3.74 billion, or $1.09 a share, compared with a year-earlier profit of $3.4 billion, or 97 cents a share. The company's February forecast called for earnings of $1.01 to $1.06 a share. Revenue rose 8.5% to $113.02 billion, exceeding the $110.54 billion expected by analysts polled by Thomson Reuters. Looking ahead, the company forecast earnings from continuing operations of $1.13 to $1.18 a share for its current quarter, bracketing the $1.16 per-share profit currently expected by analysts surveyed by Thomson Reuters. Same-store sales are seen rising 1% to 3% at Wal-Mart stores in the U.S. and 4% to 6% at Sam's Club. The results come just weeks after the retailer's admission that it is investigating allegations of bribery at its operations in Mexico, a black eye that legal experts say could prompt years of stepped-up regulatory scrutiny in the U.S. and hundreds of millions of dollars in fines if shown to be true. Shares were trading 2.9% higher at $60.90 premarket. The stock has risen 6.6% over the past 12 months. -By Mia Lamar, Dow Jones Newswires; 212-416-3207; mia.lamar@dowjones.com
