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Wal-Mart Stores Inc. said on Tuesday that sales at its U.S. discount stores open at least a year fell 0.9 per cent during its second quarter, marking the ninth straight quarterly decline as it tries to bring bargain hunters back to its stores.

Still, profit beat analyst expectations as international sales, sales at the company's Sam's Club unit and a push to rein in expenses helped offset U.S. same-store sales that came in below analysts' forecasts.

Wal-Mart shares rose 2.3 percent in premarket trading.

The world's largest retailer earned $1.09 per share from continuing operations, up from 97 cents a year earlier and near the high end of its forecast of $1.05 to $1.10. The average analyst estimate was $1.08, according to Thomson Reuters I/B/E/S.

Excluding a decline in the market value of currency derivatives, acquisition costs and other items, earnings were $1.12, compared with the average analyst estimate of $1.08, according to Thomson Reuters I/B/E/S.

The U.S. Walmart business is the company's biggest by far, accounting for $260.3-billion (U.S.), or 62.1 per cent of sales, in fiscal 2011. Customers there have moved to even lower-priced dollar stores as unemployment remains high and inflation cuts into people's spending power.

The company has seen U.S. shoppers trying to save money by buying items like lower-priced detergents as well as smaller packages – such as a half gallon of milk instead of a gallon, executives said in a recorded message.

Also, more shoppers are relying on government aid to help them pay for food and other necessities.

In May, Wal-Mart said same-store sales at the Wal-mart chain in the United States, excluding fuel, would be down one per cent to up one per cent. Analysts, on average, were expecting a decline of 0.6 per cent, according to Thomson Reuters data.

Wal-Mart said U.S. same-store sales improved each month during the quarter. Fewer customers visited Wal-mart U.S. stores, but those who shopped spent more on average, the company said.

For the year, Wal-Mart expects a profit of $4.41 to $4.51 a share, compared with its previous forecast of $4.35 to $4.50. The company forecast a profit of 95 cents to $1 for the third quarter.

The goal is still for same-store sales in that unit to turn positive by the end of the year, said Wal-mart U.S. chief executive Bill Simon.

Wal-Mart shares rose to $51.15 in premarket trading from Monday's close of $49.98.

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Tickers mentioned in this story

Study and track financial data on any traded entity: click to open the full quote page. Data updated as of 28/03/24 4:15pm EDT.

SymbolName% changeLast
TRI-N
Thomson Reuters Corp
-0.08%155.83
TRI-T
Thomson Reuters Corp
-0.41%210.8
WMT-N
Walmart Inc
-0.91%60.17

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