Wal-Mart misses profit view

By Nicole Maestri

NEW YORK (Reuters) - Wal-Mart Stores Inc. (WMT.N: Quote, Profile, Research, Stock Buzz) reported a lower-than-expected quarterly profit and cut its full-year earnings forecast on Tuesday, saying its customers remain under economic pressure.

Shares of the world's largest retailer fell nearly 5 percent.

Earnings rose to $3.1 billion, or 76 cents per share, in the second quarter ended July 31, from $2.08 billion, or 50 cents per share, a year earlier, when the company took a charge for selling its German stores.

Earnings per share from continuing operations were 72 cents per share before a gain of 4 cents. Analysts on average were expecting 76 cents, according to Reuters Estimates.

Chief Executive Lee Scott blamed the disappointing performance on economic pressure around the world.

"It is no secret that many customers are running out of money toward the end of the month," Scott said on a recorded conference call. Higher fuel prices, interest rates, utility costs and "more financial pressure" are hurting sales in its international market, including Mexico and Canada, he added.

In an interview, Chief Financial Officer Tom Schoewe said Wal-Mart expected many of the trends it saw in the second quarter to continue in the current quarter, but the retailer was still "feeling pretty good" about prospects for the holiday season.

"We're hopeful that many of the issues that created pressure in the second quarter, we can work our way through that in the third quarter," he said.