International News - Wal-Mart gross margin falls in stock clearout

Wal-Mart's gross margin fell for the first time in two years after the retailer had to mark down summer stock to clear.

The world's biggest retailer believed that pressure on margins would continue as shoppers take a cautious approach and trade down - buying entry-level products.

Wal-Mart chief executive officer Lee Scott said: 'All said, I don't think consumer spending is slowing, but I also don't see the strength that many of you in the investment community appear to see.'

The retailer's sales were up 13 per cent for the third quarter, to US$62.5 billion (£37 billion). Net income from continuing operations for the quarter was $2 billion (£1.18 billion) - a 13.9 per cent increase.