Wal-Mart Not Worried About Rest of Year

Updated from 7:17 a.m. EDT

Despite consumer weakness elsewhere, Wal-Mart's(WMT Quote) shoppers plugged away in the second quarter, helping the company post earnings that rose at a pace slightly above analyst forecasts. The company said fewer markdowns and an improved merchandise mix benefited the quarter.

Wal-Mart said that it is still "optimistic" on the balance of the year and provided third-quarter earnings within range of analysts' estimates. It also upped its own full-year earnings guidance -- also within range of Wall Street's estimates.

Chief Executive Lee Scott remains concerned about high gas prices, but said growth in income will continue to lessen the impact.

The Bentonville, Ark., discount chain reported earnings of $2.65 billion, or 62 cents a share, in the quarter ended July 31, compared with earnings of $2.44 billion, or 56 cents a share, in the year-earlier period. The year-ago quarter included earnings of $161 million, or 4 cents a share, from the company's former McLane grocery distribution unit. Analysts were expecting 61 cents a share in the most recent quarter, and the company itself had forecast 60 cents to 62 cents a share.

Total sales rose 11.3% to $69.7 billion, while U.S. same-store sales in the period increased 4.1%. Analysts had been forecasting sales of $70.77 billion in the latest quarter.

"We consider this a solid performance in a difficult retail environment. Now at the halfway point, we are on track for another record year," said Scott in a statement.

Shares of Wal-Mart were moving up 66 cents, or 1.3%, at $52.29 in Thursday premarket trading.

By division, total sales at Wal-Mart stores increased 10.2% to $46.9 billion with same-store sales up 3.2% and a nearly double-digit increase in food same-store sales. At Sam's Club, net revenue was $9.4 billion, up 10.1% with same-store sales up 8.8%. Internationally, sales increased 16.3% to $13.4 billion.