From the AP:
Wal-Mart Stores Inc. reported a 22 percent increase in its fourth-quarter profit as the world’s largest retailer cut costs and slimmed down its inventories.
But a key measure of sales showed its third consecutive quarterly decline, the discounter said Thursday, as it continues to grapple with deflation in groceries and electronics and a tough economy. The company also offered a tepid earnings outlook.
Wal-Mart shares fell 82 cents to $53.24 in premarket trading.
The sales weakness is happening even as the discounter sees more customers and takes market share away from its rivals with aggressive discounting. Wal-Mart has promised investors that it plans to widen the price gap between itself and rivals as it cut costs and reinvests those savings to lower prices for shoppers, which in turn drives sales.
Wal-Mart earned $4.63, or $1.21 per share, in the quarter ended Jan. 31. That compares with $3.8 billion, or 96 cents per share, in the same quarter last year.
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