Penny-pinching shoppers boost Wal-Mart profit

"We know that the economy remains a critical factor in this new fiscal year," said Lee Scott, CEO of the world's largest retailer, in a statement. "Customers were more cautious in their spending in January."

Net income rose 4 percent to $4.096 billion, or $1.02 per share, for its fiscal fourth quarter ended January 31, from $3.94 billion, or 95 cents per share, a year earlier.

The most recent quarter's results included charges of 3 cents per share for dropped real estate projects and a restructuring charge for its Japanese operations, and a 1 cent per share benefit from the sale of certain real estate properties.

Excluding the items, Wal-Mart reported earnings of $1.04 per share, above analysts' average estimate of $1.02 per share, according to Reuters Estimates.

WORKING TO GET SALES ON TRACK

Wal-Mart has been trying to improve sales at its U.S. stores and appeal to its core lower income shoppers, who are feeling the pinch of higher food and fuel costs and the downturn in the housing market.

It began cutting prices earlier than ever for the holiday season, and rolled out an aggressive ad campaign to emphasize its low prices.

Sales for the quarter rose to $106.27 billion from $98.09 billion.

Sales at its U.S. stores open at least a year, a key retail gauge known as same-store sales, rose 1.7 percent in the quarter, compared with a rise of 1.6 percent a year ago, as shoppers headed to its stores for groceries, health care items and electronics.

Same-store sales at its namesake discount stores rose 1.6 percent, while they advanced 2.5 percent at its Sam's Club warehouse divisions.

It forecast first-quarter earnings of 70 to 74 cents per share. Analysts, on average, have been expecting earnings of 73 cents per share for the first quarter.

For the full-year it expects earnings of $3.30 per share to $3.43 per share, compared with analysts' expectation for earnings of $3.42.

(Reporting by Nicole Maestri; Editing by Derek Caney and Gerald E. McCormick)