Wal-Mart Stores Inc. sounded a pessimistic note about the pace of the economic recovery Tuesday. Reporting its fourth consecutive quarter of sluggish U.S. sales, it cautioned that its customers are still struggling with high unemployment and rising gasoline prices.
The world's largest retailer still posted a 10% profit increase for the quarter ended April 30, thanks to tighter expense controls and strong sales internationally, particularly in Canada, Mexico, China and Brazil.
But the Bentonville, Ark., discount giant said that U.S. sales at stores open at least a year fell 1.1%, and store visits dropped despite recent attempts to attract shoppers with price cuts.
Wal-Mart warned that U.S. sales would continue to be slow in coming months as the working-class customers who form Wal-Mart's base continue to feel economic pain. "Our customers, particularly in the U.S., are still concerned about their personal finances and unemployment, as well as higher fuel prices," Chief Executive Mike Duke said.
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