The world’s biggest retailer, Wal-Mart, has reported healthy quarterly profits after a strong holiday season in its home market.
For the three months to 31 January, Wal-Mart turned in a net income of $5.2bn (£3.3bn), up 3.4% compared with the same period in the previous year.
Wal-Mart lowered prices to tempt shoppers during the holiday season.
But sales at its British arm, Asda, were up just 1%, a slowdown from the third quarter, when sales grew 1.3%.
Asda has a slightly different quarter from its parent company. It reports on the three months to 7 January.
In its quarterly report, Wal-Mart’s chief executive, Mike Duke, said the price-cutting strategy was working.
“Our price leadership is making a difference across the United States, as many families are settling into a new normal,” he said.
“Core customers remain cautious about their finances, and they rely on Wal-Mart’s every day low price promise to help them manage through today’s economic challenges.”
But that growth has come at a cost. The company’s profit margin fell in the fourth quarter because of discounting.
Wal-Mart has been expanding overseas with last year’s purchase of South Africa’s Massmart.
It is also planning to raise its stake in the Chinese internet retailer Yihaodian to 51%.
