UPDATE 2-Wal-Mart's U.S. customers hit by payroll taxes, gas prices
* Profit $1.67/share tops Street view $1.57/share
* Dividend raised 18 percent
* Walmart U.S. sales up 1 pct, seen flat in current qtr
Feb 21 (Reuters) - Wal-Mart Stores Inc said on Thursday that U.S. sales weakness persisted into early February, as Americans absorbed the impact of higher payroll taxes and gasoline prices, along with slow tax refunds that put some spending on hold.
The weakness overshadowed the world's largest retailer's bigger-than-expected profit increase, which was helped by a lower-than-anticipated tax rate. Wal-Mart also raised its dividend payout.
Its shares fell 1 percent in premarket trading.
Walmart U.S., Wal-Mart's largest unit by far, has had a slow start to February, which Walmart U.S. Chief Executive Bill Simon attributed largely to a delay in income tax refunds. The company expects sales at Walmart U.S. stores open at least a year, or same-store sales, to be about flat during the current first quarter. A year earlier, such sales rose 2.6 percent.
"We are confident that our low prices will continue to resonate, as families adjust to a reduced paycheck and increased gas prices," Simon said in a statement.
Efforts such as extending its layaway program and matching competitors' prices attracted shoppers during the competitive holiday season, but Walmart U.S. same-store sales rose just 1 percent in the fourth quarter. The company had forecast an increase of 1 percent to 3 percent, and analysts, on average, had anticipated a 1.5 percent gain.
A year earlier, Walmart U.S. same-store sales rose 1.5 percent.
Still, Wal-Mart said its biggest unit gained market share in major categories of food, consumables, health and wellness and over-the-counter medications, as well as in entertainment and toys, which are big sellers during the holiday period. It cited data from Nielsen and the NPD Group.
FORECASTS PROFIT GROWTH
Wal-Mart earned $5.61 billion, or $1.67 per share, from continuing operations in the fiscal fourth quarter, up from $5.19 billion, or $1.51 per share a year earlier.
Wal-Mart had forecast a profit of $1.53 to $1.58 per share from continuing operations, and analysts expected it to earn $1.57 per share, according to Thomson Reuters I/B/E/S.
Revenue rose 3.9 percent to $127.92 billion.
The company forecast first-quarter earnings per share of $1.11 to $1.16, up from $1.09 a year earlier.
It also forecast fiscal-year earnings per share of $5.20 to $5.40, including about 9 cents in increased costs for its e-commerce operations. It earned $5.02 per share in fiscal 2013.
Wal-Mart spent $157 million last year on its own probe of alleged bribery allegations in Mexico, Brazil, China and India. A New York Times article in April 2012 unveiled alleged bribery at the major Mexican unit.
The company said its forecast includes about $40 million to $45 million in first-quarter costs related to foreign corrupt practices act and compliance matters.
Wal-Mart said its fiscal year 2014 dividend would be $1.88 per share, up from $1.59 per share in fiscal 2013.