Right now, the recovery in consumer spending doesn't seem near. Wal-Mart's Schoewe said early signs for the back-to-school season show that shoppers are focusing on replenishing basics and are fixated on "value" but he believes Wal-Mart is picking up market share across all categories of business.
He also said he sees a continued trend toward shoppers paying for more of their purchases with cash and debit cards instead of credit cards.
Against this challenging environment, Wal-Mart said same-store sales should be unchanged to up 2% in the third quarter ended Oct. 30.
Wal-Mart boosted the low end of its annual profit guidance to a range of $3.50 to $3.60 a share, from $3.45 to $3.60. Analysts surveyed by Thomson Reuters predict $3.56 per share.
For the third quarter, Wal-Mart expects earnings of 78 cents to 82 cents a share, including a 3-cent negative impact from currency exchange rates. Analysts surveyed by Thomson Reuters expect 80 cents a share.