Retailers Ring Up Mixed Quarterly Sales

As retailers began announcing their first-quarter earnings in earnest Tuesday, they gave a picture of an industry that has been fragmented by the economy and the weather.

The nation’s largest retailer, Wal-Mart Stores, said sales rose nearly 3.3%, an improvement over the company’s fourth-quarter sales decline but still off from the stronger profit growth it enjoyed in the past.

Wal-Mart said it earned $571 million, or 25 cents a share, on revenue of $23 billion in the quarter. A year earlier, the company earned $553 million, or 24 cents, on revenue of $20.65 billion.

“Although our earnings gains were below historical levels, we expect earnings to accelerate as the year progresses,” said David Glass, president and chief executive.

With the first quarter, Wal-Mart returned to earnings growth following a profit drop in the fourth quarter--the company’s first earnings decline after 99 quarters of growth.

J.C. Penney, lagging other apparel retailers whose sales are recovering after a prolonged slump, said earnings fell 6.6% to $142 million, or 57 cents a share, in the quarter, from $156 million, or 61 cents, in the same period last year.

Home Depot, the highly successful home improvement retailer, said earnings rose 24% to $195 million, or 41 cents a share, up from $157.8 million, or 34 cents, in the same period last year.

But upscale jeweler Tiffany reported that its profit more than doubled to $5.1 million, or 30 cents a share, in the quarter ended April 30, from $2.2 million, or 14 cents, a year ago.

At a Glance:

Tele-Communications said its losses nearly doubled in the first quarter, reflecting recent expenditures on new and upgraded cable systems. The Englewood, Colo., company lost $86 million, or 17 cents a share, compared with a loss of $45 million, or 8 cents a share, a year ago.

The results were “absolutely no surprise,” said John Reidy, a telecommunications analyst for Smith Barney in New York.

Dell Computer reported a 33% rise in first-quarter profit, citing productivity gains and increased sales due to aggressive pricing. The Austin, Texas-based maker of personal computers earned $82 million, or 84 cents a share, exceeding average forecasts of 73 cents. A year ago, it earned $82 million, or 55 cents.