Wal-Mart Posts Record Profit in 3rd Quarter

Wal-Mart Stores Inc., the nation’s largest retailer, on Tuesday reported sharply higher profit for the third quarter, but J.C. Penney Co.’s net income fell and Dillard’s Inc. posted weaker-than-expected results.

Wal-Mart said earnings rose to a record $792 million, or 35 cents a share, from $684 million, or 30 cents, in last year’s third quarter. Sales rose to $28.7 billion from $25.6 billion.

The Bentonville, Ark.-based company said its international operation swung to a profit from a loss for the period. Improved results at its super center division, which includes groceries, and improved inventory control at its discount stores, also contributed to the improvement.

“We are well-positioned for the holiday season and look forward to continued double-digit growth in sales and, more importantly, earnings,” Wal-Mart President and Chief Executive David Glass said.

Wal-Mart’s earnings were in line with analysts’ estimates.

The quarter marked the third straight three-month period in which the company’s earnings per share have risen more sharply than did sales--16% versus 12%.

Wal-Mart stock rose 50 cents to close at $37.50 on the New York Stock Exchange.

At Plano, Texas-based J.C. Penney, profit fell to $113 million, or 40 cents a share, for the quarter, from $236 million, or 95 cents a share, for the same period last year. Sales rose to $7.4 billion from $5.7 billion.

Results were pressured by $190 million in costs for integrating Eckerd Corp.’s drugstores, which Penney purchased in February, and by an early-retirement program. Of the 1,575 workers eligible for the retirement package, 1,250 have accepted, Penney said.

Excluding those expenses, earnings would have been 85 cents a share, in line with analysts’ estimates.

Penney’s stock rose $2.50 to close at $62.88 on the NYSE.

Little Rock, Ark.-based Dillard’s reported earnings of $44.3 million, or 40 cents a share, for the quarter, compared with $31.6 million, or 28 cents a share, a year earlier. Analysts had expected Dillard’s earnings to rise to 41 cents a share. Dillard stock fell $2.56 to close at $35.50 on the NYSE.

At a Glance:

Donna Karan International said it will cut 285 jobs, consolidate its fashion divisions and license or outsource some of its businesses. It will also take $64 million in fiscal fourth-quarter charges to cover the costs of these moves. The maker of the DKNY and Donna Karan New York clothing lines reported a plunge in third-quarter earnings to $900,000, or 4 cents a share, from $9.6 million, or 45 cents, for the year-earlier period. The company made its initial public offering in June 1996.

Nordstrom reported that its third-quarter net income rose 6.2% to $36.1 million, or 47 cents a share, from $34 million, or 42 cents, a year ago.

Equity Residential Properties Trust’s third-quarter funds from operations rose 83% to $76.1 million, or 94 cents a share, from $41.6 million, or 79 cents, a year earlier.

OfficeMax said its third-quarter earnings rose 33% to $31.4 million, or 25 cents a share, from $23.7 million, or 19 cents, a year ago.