|
Retailers post healthy 1Q
|
 |
May 9, 2000: 10:28 a.m. ET
No. 1 retailer Wal-Mart tops forecast; OfficeMax, CVS meet estimates
|
NEW YORK (CNNfn) - Wal-Mart Stores Inc., the world's largest retailer, posted a 19 percent gain in earnings to edge past estimates Tuesday for its fiscal first quarter, while two other leading retailers, CVS Corp. and OfficeMax Inc., met forecasts.
Wal-Mart's posted net income of $1.3 billion, or 30 cents a share. Analysts surveyed by earnings tracker First Call expected the company earned 29 cents a share for the quarter ended April 30.
In the year-earlier quarter, the company earned $1.1 billion, or 25 cents a share, before the impact of an accounting change. That charge lowered net income to $916 million, or 20 cents a share, in the year-earlier period.
 Wal-Mart (WMT: Research, Estimates) revenue grew 23.7 percent to $43.4 billion. Overall store sales rose 23.6 percent and sales from stores open at least a year -- a closely watched measure known as same-store sales -- increased 6.6 percent.
Shares of Dow Jones industrial average component Wal-Mart gained 1-7/8 to 54-1/4 in trading Monday.
Online sales put OfficeMax into the red
In other retail earnings released Tuesday, OfficeMax Inc. (OMX: Research, Estimates) met the forecast for its overall loss for its fiscal first quarter ended in April, as Internet and the computer sales unit put it into the red.
The nation's third-largest office supply retailer, behind Office Depot and Staples, lost $2.1 million, or 2 cents a share, in line with First Call's analysts' forecasts. A year earlier, the company earned $22 million, or 19 cents a share.
While losses in its computer business unit and online sales plunged it into the red, core store earnings also fell sharply, to $7.2 million from $29.8 million a year ago. The company cited costs associated with its supply-chain management program and increases in marketing. It is in the process of building two large distribution centers, one in Alabama and one in Nevada.
Online operations lost $7.3 million in the quarter, up from a $497,000 loss a year earlier. The computer business segment, which the company is exiting as its own operation through a partnership with Gateway Inc. (GTW: Research, Estimates), saw a loss drop to $1.9 million from a $7.3 million loss a year earlier.
Overall sales climbed to a company record of $1.3 billion from $1.2 billion a year earlier. The core store sales gained 12.8 percent to $1.2 billion, while online sales jumped almost six-fold to $26.1 million from $4.4 million a year ago.
Shares of OfficeMax edged up 1/16 to 5-3/8 in trading Tuesday.
CVS overcomes weak flu season
CVS (CVS: Research, Estimates) first-quarter earnings were a record $191.3 million, or 47 cents a share, up from $164.6 million, or 40 cents a share, in the year-earlier quarter. The latest results are in line with First Call's forecast.
The company, which along with Walgreen's is one of the nation's largest drug store chains, said sales rose 11.8 percent to $4.7 billion from $4.2 billion a year earlier. The company said it overcame what it called a "weak flu season," to post an 8.8 percent increase in same-store sales. Same-store pharmacy sales climbed 15.2 percent.
Shares of CVS slipped 1/4 to 44-1/2 in trading Tuesday. 
|
|
|
May Department Stores hits 1Q forecasts - May 8, 2000
Retailers ring up strong sales in April - May 4, 2000
Retail stocks take a hit - May 3, 2000
New CEO at Wal - Mart.com - March 1, 2000
Wal - Mart beats 4Q estimate - Feb. 15, 2000
More strong 4Q retail profits - Feb. 29, 2000
OfficeMax to miss expectations - Sept. 30, 1999
Retailers in B2B alliance - March 31, 2000
CVS not to buy PCS - Feb. 25, 2000
CVS beats 4Q estimates - Feb. 8, 2000
|
|
|
|
|
|
 |
|
