NEW YORK (Reuters) – Wal-Mart Stores Inc expects US same-store sales to rise during the holiday shopping season, when it hopes to lure its low- to middle-income customers with discounts on toys and electronics.

The world's largest retailer reported a higher quarterly profit, buoyed by cost cuts and growth in its international business. But sales at US stores open at least a year fell 1.3 percent, their sixth consecutive quarterly drop.

Company executives said they expect much of this year's holiday shopping will happen close to Christmas at the end of December, continuing a pattern of US consumers waiting until the last minute to make their purchases as they cope with high unemployment.

"Like back-to-school and Halloween, we expect that a lot of spending will come close to Christmas," Wal-Mart US CEO Bill Simon said in a recorded message.

Wal-Mart's official forecast calls for same-store sales in range of a one percent decline to a two percent rise in the current, fourth quarter, but executives said they were confident that performance would show an improvement.

"We believe fourth quarter will be in positive territory," said Wal-Mart CFO Tom Schoewe.

Shares of the company rose one percent to $54.50 in premarket trading, although analysts remained sceptical because of a track record of same-store sales declines.

"The fact of the matter is comps continue to be negative in the US division and traffic is not there," Wall Street Strategies analyst Brian Sozzi said. "I need to see traffic come back in the fourth quarter."

Wal-Mart is also still seeing a pickup in sales at the beginning of the month, a sign that many consumers are spending once they receive their paycheque or government unemployment benefits and then waiting for their next wages come in.

Sales at Wal-Mart's US discount stores have suffered from the company's missteps in terms of merchandise selection and promotion. In addition, high unemployment has forced Wal-Mart's lower-income customers to cut back on even some essential items or to search out lower prices at dollar stores.

At the same time, retailers such as rival Target Corp have seen sales improve as customers who feel more secure in their jobs begin to spend again. US retail sales posted their strongest gain in seven months during October, according to new Commerce Department data. Wal-Mart's profit rose to $3.44 billion, or 95 cents a share, in the third quarter ended October 31 from $3.15 billion, or 82 cents a share, a year earlier.

Earnings per share, excluding a tax benefit, were in line with the analysts' average forecast of 90 cents.

Net sales rose 2.6 percent to $101.2 billion.

Wal-Mart said it now expects fiscal 2011 earnings per share of $4.08 to $4.12, up from a previous forecast of $3.95 to $4.05, reflecting the tax benefit and expectations of a solid operational performance in its fourth quarter. Analysts were expecting a profit of $4.02 per share.

Sales at the company's international unit rose 9.3 percent to $26.92 billion. Sales at the Sam's Club warehouse club chain rose 2.7 percent to $12.14 billion.