Wal-Mart profit rises 6.9 pct on strong sales

Wal-Mart President and CEO Lee Scott said the company is seeing returns from a plan begun two years ago to improve the way Wal-Mart does business, including more efficient inventory management and improved customer service.

"There are still uncertainties during the rest of the year," Scott said in a recorded call for investors. "The economy is playing a critical factor in 2008."

But Scott and other executives said Wal-Mart is in a good position to meet customers' needs in the down economy and later, when there is a rebound.

Shares fell 82 cents to $57.20 in premarket trading.

Wal-Mart earned $3.02 billion, or 76 cents per share, in the three months ended April 30, up from $2.83 billion, or 68 cents per share, a year earlier.

Analysts polled by Thomson Financial had projected earnings of 75 cents per share. The estimates typically exclude one-time items.

The company had overall revenue of $95.30 billion, up 10.3 percent from $86.41 billion in the prior year. Net sales excluding membership fees rose to $94.1 billion from $85.4 billion a year ago.

Analysts projected revenue of $93.47 billion for the quarter.

Without fuel, same-store sales for the first quarter were up 2.9 percent at Wal-Mart's domestic properties, rising 2.7 percent in the Wal-Mart Stores division and 3.6 percent at Sam's Clubs.