Wal-Mart January sales weaker than expected

NEW YORK (Reuters) - Wal-Mart Stores Inc on Thursday reported a lower-than-expected 0.5 percent rise in its January sales at U.S. stores open at least a year, excluding fuels sales, citing unfavorable weather and gift card redemptions that were below expectations.

The world's largest retailer, which stood by its fourth-quarter earnings forecast, said that for February it expects U.S. same-store sales to be between flat and up 2 percent.

Last month, Wal-Mart said it expected January U.S. same-store sales would rise roughly 2 percent, while analysts, on average, were expecting a 2 percent gain, according to Reuters Estimates.

Retailers can only book revenue after gift cards are used, and they often count on customers coming back into their stores quickly after the holiday season to use those cards.

It also said that sales were hurt by "unfavorable weather," especially in the Midwest

Wal-Mart said it continues to expect to report fourth-quarter earnings per share from continuing operations of 99 cents to $1.03 per share. Its fourth quarter ended January 31.

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