Wal-Mart Stores Inc., announced on Tuesday that it had beat Wall Street expectations for its first fiscal quarter.
Wal-Mart, the largest retailer in the world, said that its profits had risen 5 cents per share over the same quarter last year to 63 cents per share, or $2.615 billion.
Analysts polled by Thomson Financial had forecasted earnings of 61 cents per share.
The success of this quarter was the result of our focus on three goals: driving sales, reducing costs and improving inventory management, Wal-Mart president and chief executive Lee Scott stated in an earnings conference call.
Same store sales, the accepted indicator of retail store health, was up 3.8 percent this quarter. Additionally, sales around the globe saw increased growth as Wal-Mart continued to integrate prior acquisitions.
Scott also mentioned that acquisitions of retailers abroad had helped international increase over 23 percent last quarter.
Wal-Mart expects its second quarter earnings to be in the range of 70 to 74 cents per share and reinforced its guidance of $2.85 to $2.95 per share for the fiscal year of 2007.
Wal-Mart shares rose almost 1.5% at mid day trading to $48.12.