ASDA has reported an increase in profits

The supermarket, owned by Wal-mart, saw a rise in profits of 1.3per cent

06:22 20 May 2013

Wal-Mart has failed to meet analysts’ expectations after it reported just 1per cent (to $3.78billion) increase in its profit for the first quarter of 2013. One main factor is the 1.4per cent sales drop in the US due to delay in income tax refund cheques, cool weather, lower grocery price inflation, and increase in companies’ payroll tax.

On the other hand, Asda, a UK chain own by Wal-Mart, has reported an increase in profits due to a range of price promotions. However, although it reported 1.3per cent increased in profits, the numbers were lower than what had been forecasted by analysts.

 

"This represents a strong performance in what remains a very tough market," said Asda's chief executive, Andy Clarke.

 

"Despite a difficult environment for our customers, we have continued to achieve growth."

 

After hitting an all-time high on Wednesday, shares fell ahead of the US market opening earlier this week.

Wal-Mart said it expects the next quarter’s same-store sales to see no or modest growth of up to 2per cent.