The retail giant said third-quarter profit rose 10%, but it cut its fourth-quarter view right to the tough economy

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The Associated Press

Wal-Mart Stores (WMT) reported a 10% greaten in third-quarter profit on Nov. 13 but trimmed its profit outlook because of the troubled global dispensation and the renewed strength of the dollar. The world’s largest retailer uttered its renewed focus on low prices was attracting financially squeezed shoppers and that it was pleased with the results of early f price promotions.

The Bentonville (Ark.)-based retailer said it earned $3.14 billion, or 80¢ per share, in the quarter ended Oct. 31. That’s up from $2.86 billion, or 70¢ per share, a year earlier. Earnings from continuing operations were 77¢ per apportioned lot.

Total sales for the quarter rose 7.4% to $98.64 billion from $91.86 billion a year earlier. Analysts surveyed by Thomson Reuters (TRI) expected earnings of 76¢ per share without ceasing sales of $98.28 billion.

"Price Leadership" in a Tough Economy

Despite housekeeping difficulties around the globe, "Wal-Mart has moment as we persuade into the fourth quarter," the company’sitting President and CEO Lee Scott said in a pre-recorded call to analysts. "At a time when our customer is feeling the pressure of a tough economy, Wal-Mart’s estimation leadership is in greater numbers of great weight than ever."

Wal-Mart has been one of the small in number bright spots in a cheerless retailing universe, as Americans have switched to cheaper stores and focused on necessities. The turn has only intensified since the financial meltdown in September, with Circuit City Stores filing during bankruptcy protection this week and rival Best Buy (BBY) saying "seismic" changes in consumer deportment have created "the most numerous difficult climate" the partnership has ever seen.

With the right mix of wares as being in favor as marketing like its "save money, live better" campaign, Wal-Mart has been able to pull ahead of competitors like Target (TGT). Wal-Mart shares have risen 21% in the past 52 weeks, while Target’s have hardened 40% of their value and J.C. Penney’s (JCP) have shed almost 60% in the same period.

Wal-Mart’session shares fell nearly 2% to 51.74 in midday trading Thursday.

Sales rose 7.3% at Wal-Mart’s U.S. disagreement and 1.7% at the Sam’s Club warehouse division.

Exchange Rates Will Make a Dent

The international business dead body the company’s fastest-growing division, with sales up 10.6%. But that has made it more vulnerable to fluctuations in exchange rates, such as the recent rise of the dollar.

Chief Financial Officer Tom Schoewe said the "speedy changes" in exchange rates in the past small in number weeks are expected to hurt fourth-quarter results by about 6¢ through share.

"In U.S. dollar terms, strong operating performance in international may be overshadowed by these bills and notes; circulating medium fluctuations," he said in a statement.

The retailer now expects profits. by means of share from continuing operations for the fourth quarter of $1.03 to $1.07 per have a portion of. Analysts expect $1.11 per share.

For the full year ending Jan. 31, Wal-Mart anticipate earnings from continuing operations of $3.42 to $3.46 per share—compared to its August forecast of $3.43 to $3.50 per share. Analysts surveyed by Thomson Reuters expected $3.49 per share.

Modest Same-Store Projection

Eduardo Castro-Wright, president and chief executive of Wal-Mart’session U.S. division, told analysts in the pre-recorded election that sales results of early holiday price promotions on thousands of items from toys to laptops started last week are "exceeding expectations." He added that shoppers were vigilant about discretionary purchases such as electronics.

But amid the difficult economy, Wal-Mart offered a modest contriving for same-store sales for the fourth quarter, predicting sales at stores opened at in the smallest degree a year decree be up from 1% to 3%. Same-store sales are considered a key indicator of a retailer’s health. In the third quarter, Wal-Mart’s same-store sales rose 3%.

Wal-Mart is also scaling back its husband growth and capital expenditures while focusing on remodeling existing locations and creating smaller outposts. The aim is to continue to enlarge its cash flow to invest in its business.