Wal-Mart reports lower-than-expected quarterly profit

American retailer Wal-Mart Stores Inc. on Tuesday reported lower-than-expected profit for the third quarter as it slashed prices to boost sales.

Wal-Mart, the world’s leading retail store chain, announced that its net income for the three months to October 31 slipped 2.9 per cent from the year-ago period to settle at $3.34 billion.

Net income per share stood at 97 cents, down from analysts’ projected figure of 98 cents.

Net sales jumped 8.2 per cent to $109.5 billion during the same period. Net sales from the international market climbed 20 per cent to $32.4 billion.

In the US, Wal-Mart did its best to refrain from increasing prices in order to appeal to shoppers at a time when they are concerned about the job and economy prospects.

Speaking on the topic, ITG Investment Research analyst John Tomlinson said, “They were clearly being aggressive in pricing and gaining share, but they didn't get the leverage on the cost side.”

For the whole year, the retailer expects profits of $4.45 to $4.51 per share, as compared with an analysts’ average forecast of $4.50 per share.