NEW YORK, August 14, 2008 (AFP) - US retail titan Wal-Mart Stores reported a 16 percent jump in quarterly profits to 3.449 billion dollars Thursday as it continued to weather a stiff front of economic winds buffeting consumers.

The retailer, based in Bentonville, Arkansas and with operations spanning the globe, unveiled a set of slightly better-than-expected profits while raising its full year earnings forecast.

Wal-Mart's coffers swelled as US consumers continued shopping at its stores, famed for their competitive prices on a wide range of goods, despite a persistent housing market slump, high fuel prices and a credit squeeze.

'While inflation and higher fuel costs are pressuring suppliers, retailers and customers worldwide, we?re confident that Wal-Mart is well-positioned for this economy,' said Lee Scott, Wal-Mart Stores president and chief executive.

The world's largest retailer reported fiscal 2009 second quarter earnings per share of 86 cents. Most analysts had predicted that Wal-Mart would post earnings of 84 cents per share.

Sales at Wal-Mart's US stores, known for their cavernous box-like capacity, showed a healthy increase as did revenues from overseas.

Total group revenues increased 10 percent to 101.5 billion dollars.

Wal-Mart's competitive pricing strategy appears to be paying dividends as the company forecast full fiscal year earnings of between 3.43 dollars and 3.50 dollars per share.

Company executives had previously said full year earnings would likely range between 3.30 and 3.43 dollars per share.

Analysts said it was likely that Wal-Mart's quarterly earnings received support from a giant 168-billion-dollar economic stimulus approved by the administration of US President George W. Bush which was stuffed with one-off tax rebates aimed at firing up the economy and consumer spending.

Some economists, however, expect consumer spending to tighten in coming months as the effects of the stimulus wear off.

Net sales at Walmart US and Sam's Club which compromise Wal-Mart's domestic operations rose a combined 16.5 percent while international sales increased 16.9 percent.

Wal-Mart's international footprint has also helped insulate it from sluggish economic growth in the United States.

Wal-Mart owns Asda, the number-two supermarket chain in Britain after Tesco. It also runs stores in Brazil, China and Japan among other countries.

The retailer said it would likely book a gain from the sale of an Asda subsidiary during its third quarter, although it did not indicate what the expected gain would be.

Wal-Mart's stock was up 1.7 percent at 58.84 dollars amid wider market gains.