Based on Wal-Mart’s (WMT) earning for the quarter ending April 30, the world’s largest retailer did better than it was supposed to. The company reported EPS of $.77 at the highest end of the range it had set for itself. If it has not been for Wal-Mart’s international business, which carried the firm for several years, the numbers would have been even better.

In the US, Wal-Mart’s flagship stores produced revenue which rose 4% to $61.2  billion. Overseas the top line dropped 11% to $21.3 billion. Currency exchange rates hurt international results. Total revenue for the quarter was flat at $93.5 billion.

Wal-Mart said it would have earnings for the current quarter of between $.83 and $.88, an impressive figure. The company same-store sales are expected to be flat to up 3%.

It is easy to say that because of Wal-Mart’s size and reach it should outperform other retailers, but size is also a drawback. Given Wal-Mart’s huge market share, it should have no reason to defy the gravity of falling consumer spending.

Maybe everday low prices do have their advantages.

Douglas A. McIntyre