Wal-Mart 2nd-Quarter Profit Jumps 35%

Wal-Mart Stores Inc. said its profit jumped 35% for its fiscal second quarter to $1.39 billion, or 31 cents a share, beating estimates of 28 cents, as its push into groceries and its acquisitions helped fuel sales. The Bentonville, Ark.-based discount merchant, which is the world’s largest retailer, said sales for the period ended July 31 rose 15% to $38.5 billion and that sales at stores open at least a year grew 8%. Foreign sales surged 25% to $3.68 billion as the company expanded in Europe with acquisitions in Germany and Britain. Wal-Mart also is keeping costs in check, using its size to squeeze better prices from suppliers. The most recent quarterly results exclude a charge of 3 cents a share, or about $134 million, for a legal settlement over the breakup of a distribution agreement with Mexican grocery wholesaler Valores Corp. The suit resulted in a $624-million jury award in May and was later settled for an undisclosed sum. The earnings news sent Wal-Mart shares rising $2.69 to close at $42.88 on the New York Stock Exchange.