Wal-Mart: Another solid performance

By Don Hogsett -- Home Textiles Today, 8/23/2004 12:00:00 AM

BENTONVILLE, ARK. —

Helped by strong sales and lean inventories, second quarter profits at Wal-Mart Stores Inc., the world's largest retailer, rose 8.5 percent, to $2.7 billion from $2.4 billion last year.

Skewing the year-over-year earnings comparison substantially, last year's bottom line included $161 million in profits from a discontinued operation — the McLane Company distribution subsidiary. Pulling McLane out of the comparison, second quarter profits from continuing operations jumped an impressive 16.1 percent, to $2.7 billion from $2.1 billion.

Helped by growth abroad and strength at Sam's Club, sales increased at a double-digit pace, rising 11.3 percent, to $69.7 billion from $62.6 billion. Same-store sales in the United States rose 4.1 percent, with strong comps at Sam's offsetting softness in the core Wal-Mart Stores. Same-store sales at Sam's rose 8.8 percent, while comps at Wal-Mart stores edged up just 3.2 percent.

Overall sales in Wal-Mart stores rose 10.2 percent, to $46.9 billion, fueled by continued expansion. Total sales at Sam's rose 10.1 percent, to $9.4 billion from $8.6 billion, driven almost entirely by rapid same-store sales growth.

Wal-Mart Stores Inc.