Wal-Mart, May Co. Gain; Nordstrom Slides

Wal-Mart Stores Inc. reported Monday that its first-quarter earnings rose 26% as business remained robust, while May Department Stores Co. said its profits rebounded following a decline a year earlier.

But Nordstrom Inc., the specialty apparel retailer, said its earnings fell 16%.

Wal-Mart, the nation’s largest retailer, has flourished as it continues to draw budget-conscious consumers who have “traded down,” turning to lower-priced merchants because of the economy.

May recovered ground it lost a year earlier, when department stores were hit hard by the recession. However, May and other moderate-to-upscale retailers--including Nordstrom--continue to feel the pinch of consumer caution.

Wal-Mart said it earned nearly $387 million, or 34 cents a share, in the quarter ended April 30, up from $307 million, or 27 cents a share, in the same period a year ago.

Sales rose to $11.75 billion from $9.36 billion.

Earnings were slightly higher than some analysts had predicted. Wall Street was pleased with the results, bidding Wal-Mart stock up 87.5 cents to $52.875 a share on the New York Stock Exchange.

David Glass, president and chief executive of the Bentonville, Ark.-based firm, said in a news release: “Excellent expense control and sales that ran ahead of our plans have resulted in this solid performance to begin this new year.”

On April 30, the rapidly expanding company had 1,735 Wal-Mart stores, 215 Sam’s Clubs and four Hypermart USA units. That compares to 1,591 Wal-Mart stores, 178 Sam’s Clubs and four Hypermart USA units at the end of the 1991 first quarter.