Wal-Mart, TJX See Profits Rise
Wal-Mart Stores Inc. and discount apparel and housewares retailer TJX Cos. on Tuesday reported double-digit increases in quarterly profits as consumers sought discounters in an uncertain economy.
Meanwhile, J.C. Penney Co. posted a loss, though far narrower than analysts expected, on disappointing sales.
Upscale jewelry retailer Tiffany & Co., bruised by weak sales, recorded a 9% decline in profit. But the company raised its outlook for the rest of the year, pushing its shares up nearly 8%.
Wal-Mart, the world’s largest retailer, said second-quarter profit jumped 26%, or 46 cents a share, to $2.04 billion, from $1.62 billion, or 36 cents, a year ago, beating the Thomson First Call consensus by a penny.
Sales grew 13% to $59.69 billion, and sales at stores open at least a year jumped 6.4%.
The discount giant said business slowed toward the end of the quarter, prompting it to lower sales expectations for the third quarter.
TJX, whose chains include TJ Maxx and Marshalls, recorded a 16% increase in second-quarter earnings to $129.63 million, or 24 cents a share, a penny better than expected. Revenue was up 11% to $2.8 billion.
J.C. Penney said its second-quarter loss narrowed to $6 million, or 5 cents a share, from $69 million, or 23 cents, helped by a new centralized buying system. Analysts expected a 10-cent loss at Penney, the nation’s second-largest department store operator.
Penney’s latest results included a $2-million restructuring credit contrasted with a year-ago net charge of $12 million.
Revenue edged down to $7.2 billion from $7.21 billion, short of analysts’ expectations of $7.38 billion, as sales at department stores open at least a year fell 2.4%.
Tiffany reported second-quarter earnings of $32.71 million, or 22 cents a share, for the second quarter, down from $36.05 million, or 24 cents, a year ago.
Analysts had lowered their estimates to 22 cents from 24 cents last month after Tiffany warned of profit weakness.
Sales were up a slight 0.8% to $374 million, but same-store sales fell 5%.
In New York Stock Exchange trading, Wal-Mart rose 30 cents to $48.71, TJX rose 75 cents to $18.75, Penney fell 60 cents to $16.15 and Tiffany jumped $1.63, or 7.6%, to $23.19.
