Wal-Mart is the world's largest retailer

During the three months to the end of October, the US giant's overall net profit rose to $2.7bn (�1.4bn) from $2.4bn for the same period last year.

While Wal-Mart's overseas sales surged 34% during its third quarter, those in its US home market rose by just 8%.

Wal-Mart, which owns Asda in the UK, saw overall sales rise 12% to $84bn.

'Softer than hoped'

The results were ahead of Wall Street expectations, prompting a 2.8% rise in the firm's shares.

WAL-MART FACTS Operates in 15 countries Around 6,400 stores worldwide 4,000 stores in the US 176 million customers a week worldwide Employs 1.8 million people worldwide Sales of $312.4bn for the year to 31 January 2006 Check Wal-Mart's shares

"We are pleased that Wal-Mart again had record sales and earnings for the third quarter," said Wal-Mart chief executive Lee Scott.

"Although sales in the US were softer than we hoped for in the third quarter, there are real opportunities in the fourth quarter to build on the momentum of the aggressive pricing strategy we have implemented in our stores for the holiday season."

Wal-Mart's overseas sales were boosted by new store openings.

In the US, the slowing economy and high petrol prices were blamed for the slowdown.