Wal-Mart quarterly profit rises

NEW YORK (Reuters) - Wal-Mart Stores Inc, the world's largest retailer, reported higher quarterly profit on Tuesday as discounts drew U.S. shoppers looking for bargains on necessities like food and pharmacy items.

Net income rose to $3.02 billion, or 76 cents per share, in the first quarter ended on April 30, from $2.83 billion, or 68 cents per share, a year earlier.

Last month, Wal-Mart forecast first-quarter earnings of 74 cents to 76 cents per share from continuing operations, up from a previous view of 70 cents to 74 cents.

Consumers are seeking out Wal-Mart's low prices, especially for basic items like groceries, shampoo and cleaning supplies, as the U.S. economy falters and prices of food and fuel soar.

The economic downturn comes as Wal-Mart has gotten back to the basics, trumpeting its low prices and slowing its aggressive expansion plans, to improve results at its existing U.S. stores.

Wal-Mart shares have jumped 22 percent this year, while smaller rival Target Corp is up almost 7 percent and the Standard and Poor's Retail Index is down 1 percent.

(Reporting by Nicole Maestri; Editing by Lisa Von Ahn)