Wal-Mart sees profits climb by 26%

Staff -- Home Textiles Today, 8/26/2002 12:00:00 AM

BENTONVILLE, AR —

Lifted by rising sales, wider margins and steady gains in its international business, second-quarter profits at Wal-Mart Stores Inc. jumped up by 25.6 percent, to $2.0 billion from $1.6 billion last year.

Sales advanced by 13.1 percent, to $59.7 billion from $52.8 billion last year. Same-store sales climbed by 6.4 percent as cost-conscious consumers flock to the nation's big discounters.

In an assist to the bottom line, in addition to the stronger sales, average gross margin widened by 30 basis points, to 21.9 percent from 21.6 percent a year ago. Climbing faster than the rate of sales, gross margin dollars improved by 15.6 percent, well ahead of the 13.1 percent increase in sales.

In the retailer's core Wal-Mart Stores segment, sales improved by 14.1 percent, to $38.6 billion, while operating profits climbed even faster, by 17.2 percent, to $3.0 billion.

Sam's Club sales advanced by 9.2 percent, to $7.9 billion, but operating profits grew at a slower pace of 3.0 percent, to $275 million.

International sales climbed by 15.9 percent, to $9.7 billion, and operating profits shot up by 61.9 percent, to $510 million.

Wal-Mart Stores Inc.