Wal-Mart Profit Rises 27% for First Quarter

Wal-Mart Stores Inc., the world’s largest retailer, said Tuesday that its earnings rose a better-than-expected 27% for its fiscal first quarter as it cut inventory and consumers snapped up its low-priced household goods and Easter items amid a strong economy.

Wal-Mart’s net income rose to $828 million, or 37 cents a diluted share, for the three months ended April 30, from $652 million, or 29 cents, a year earlier. The increase beat the 34-cent average estimate of analysts surveyed by First Call Corp. and is Wal-Mart’s biggest per-share increase in five years.

Revenue jumped 17% to $29.8 billion.

Wal-Mart chief David Glass has pushed to keep costs low by setting strict terms with suppliers and trimming inventory since 1996, when the Bentonville, Ark.-based company reported its first drop in quarterly profit in 25 years.

Wal-Mart also has benefited from the lowest U.S. unemployment rate in a generation and other strength in the economy.

Sales at Wal-Mart discount stores open at least a year--”same-store” sales--rose 9.3%; same-store sales at the firm’s Sam’s Clubs rose 7.6%. Same-store sales are a key barometer of a retailer’s business because they exclude new, closed or remodeled stores.

Sales at Wal-Mart’s international division nearly doubled to $2.6 billion. The company opened six units abroad during the quarter, in Argentina, Brazil, Canada and Mexico.

Wal-Mart shares jumped $1.63 to close at $52.75 on the New York Stock Exchange.

At a Glance

Other earnings, excluding one-time gains and charges unless noted:

* Dollar General said its profit jumped 58% to $30.4 million, or 18 cents a diluted share, for its fiscal first quarter from a year ago. Revenue for the discount retailer rose 36% to $705.3 million, as sales at stores open at least a year jumped 19%.

* Lands’ End profit fell more than expected for its fiscal first quarter to $5.21 million, or 17 cents a diluted share, down 21% from a year ago. Analysts had forecast earnings of 24 cents for the three months ended May 1. Revenue rose 10% to $268.6 million. Unexpectedly weak sales in its main clothing catalogs did not offset strong sales in the specialty business.

* Nordstrom said its fiscal first-quarter net income was flat at $32.3 million, with the quarter ended April getting a boost of $1.7 million, or 2 cents a share, from an accounting change. Earnings per share rose to 43 cents from 41 cents because the upscale department store chain had 4.2% fewer shares. Analysts had expected Nordstrom to earn 38 cents, not including the accounting benefit. Revenue rose 9.1% to $1.04 billion, with sales at stores open at least a year up a slight 0.2%.

* OfficeMax’s fiscal first-quarter earnings rose 21% to $19.1 million, or 15 cents a diluted share, from a year ago, in line with estimates, as increased sales of office supplies and furniture overcame a slump in computer prices. Sales for the period ended April 25 rose 19% to $1.06 billion, while sales at stores open at least a year were up 2%.

* Sports Authority reported a net loss of $3.7 million, or 12 cents a share, for its fiscal first quarter ended April 26. That contrasts with a profit of $2.6 million, or 8 cents, a year ago. The sports retailer had warned of the loss last week. Before then, analysts had expected a profit of 4 cents. Sales rose 8% to $346 million, but sales at stores open at least a year dropped 6.2%. Last week, the company agreed to be acquired by Woolworth for $749 million in stock and debt.

* Comcast’s first-quarter loss widened to $78.9 million, or 24 cents a share, from $64.7 million, or 20 cents, a year earlier. Revenue rose 20% to $1.36 billion. Analysts had expected a loss of 25 cents a share.

The media company said losses in its wireless joint venture with Sprint more than offset stronger results from its cable TV and home-shopping operations. The company, which owns the QVC home shopping and the E! Entertainment television networks, also said net losses of affiliates, which jumped to $129.7 million this year from $70.1 million last year, contributed to the weak results.

* Cablevision Systems said it significantly reduced its first-quarter net loss to $27.2 million, or 47 cents a share, compared with $111.9 million, or $2.25, for the year-ago period. The company, which operates several major cable TV systems and owns Madison Square Garden and its professional basketball and hockey teams, said revenue climbed 89% to $675.7 million. The company said its operating profit before depreciation and amortization, and excluding the effects of stock plan income or expense, increased 44.7% to $176.7 million.

* Equity Office Properties Trust, a real estate investment trust headed by financier Sam Zell, said its first-quarter funds from operations nearly tripled funds from operations of $150.8 million, or 54 cents a diluted share, up from a pro forma $52.8 million a year ago. It attributed the results to higher rents and about $7.4 billion in office property acquisitions since it went public in July. Analysts had expected it to earn 50 cents a share.

The nation’s largest owner of office buildings said revenue was up 142% to $373.8 million.