Wal-Mart's profits beat forecast

Wal-Mart focused on low prices to attract cash-squeezed customers

The largest US retail chain, Wal-Mart, has beaten forecasts by posting a 10% increase in third-quarter profits.

Its August-to-October profit was $3.1bn (£2.1bn), as against $2.8bn last year. Sales were also up 7.5% to $97.6bn.

However, the company said it tightened its profit outlook for the last quarter because of the economic slowdown and unfavourable changes in exchange rates.

The company operates stores in 15 countries, including the UK's Asda supermarket chain.

"At a time when our customer is feeling the pressure of a tough economy, our leadership is more important than ever," said Wal-Mart chief executive Lee Scott.

Two other US leading retailers, Macy's and Best Buy, reported on Wednesday that sales were down in the last quarter because of difficult trading conditions.