With purse strings tight and job losses mounting, Wal-Mart Stores (WMT) proved again that consumers like a bargain by reporting a 10% increase in third-quarter profit.

Still while the discount retailer said it was pleased with the results of its early holiday promotions, it did lower it outlook for the remainder of the year, citing the strength of the dollar and the difficult economy.

“We are very pleased with our results," President and Chief Executive Lee Scott said in a press release. "Despite economic difficulties around the world, we achieved solid sales and earnings growth, and we are optimistic about the upcoming holidays."

For its third quarter, Bentonville, Ark.-based Wal-Mart posted net income of $3.14 billion, or 80 cents a share, compared with $2.86 billion, or 70 cents a share, in the year-earlier third quarter. Earnings from continuing operations were 77 cents a share. Revenue came in at $97.6 billion, a 7.5% increase from $90.8 billion in last year’s third quarter.

Analysts, according to Thomson Reuters, had expected Wal-Mart to weigh in with earnings of 76 cents a share.

Looking out to its fourth quarter, Wal-Mart is targeting earnings a share from continuing operators of $1.03 to $1.07, lower than the Thomson Reuters analyst consensus of $1.11 a share. For the full year, Wal-Mart expects earnings of $3.42 to $3.46 a share compared to the Thomson Reuters estimate of $3.49 a share.

According to the Associated Press, Eduardo Castro-Wright, Chief Executive of Wal-Mart’s U.S. division, said on a pre-recorded call that sales of early holiday promotions, which started last week, have exceeded expectations. He did note that shoppers are cautious about discretionary purchases.