NEW YORK (Reuters) - Wal-Mart Stores Inc on Tuesday posted a better-than-expected quarterly profit after penny-pinching U.S. shoppers scoured its discount stores for low prices on necessities like food and laundry detergent.
"We know that the economy remains a critical factor in this new fiscal year," said Lee Scott, Wal-Mart's CEO, in a statement. "Customers were more cautious in their spending in January."
Income rose 4 percent to $4.096 billion, or $1.02 per share, for its fiscal fourth quarter ended on 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 Japan 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 analyst's average estimate of $1.02 per share, according to Reuters Estimates.
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.
To kick start holiday sales, it began cutting prices on select popular toys on September 30 and offered Thanksgiving-weekend type discounts on November 2.
Sales for the quarter rose to $106.27 billion from $98.09 billion.
It forecast first quarter earnings of 70 cents to 74 cents per share. Analysts, on average, are expecting earnings of 73 cents per share for the first quarter.
(Reporting by Nicole Maestri; Editing by Derek Caney)
