Underlying sales rose by 0.1 per cent rise in the 15 weeks to April 20, following a 0.1 per cent fall over the Christmas period.
All the major supermarkets have come under intense pressure as sales at Aldi and Lidl have soared increasing their share of the market.
In what remains a challenging market, I am pleased to see that our strategy is paying dividends
In November, Asda, owned by Wal-Mart of the US, set out a fiveyear plan, including a pledge to knock £1billion off prices by 2018.
Chief executive Andy Clarke said the company had begun a structural shift in the supermarket sector 18 months ago.
He said: “In what remains a challenging market, I am pleased to see that our strategy is paying dividends.”
The group, with 579 stores, said it had narrowed the price gap against the German competition and demand for its new George homeware range had been strong.
Wal-Mart did not publish profit figures for the UK but reported group profits down by 5 per cent to £2.1billion after severe winter weather in the US hampered sales.