Dollar Tree Q2 profit surges 26%
Chesapeake, Va. — Dollar Tree Inc. reported Thursday that profit for the quarter ended July 28 soared 26% to $119.2 million, compared with $94.9 million in the year-ago period.
Sales rose 10.5% to $1.7 billion, just missing Wall Street’s expected $1.71 billion. Same-store sales grew 4.5%.
However, the company’s outlook fell short of Wall Street expectations, saying that it expects revenue between $1.71 billion and $1.75 billion in the third quarter while Wall Street expects $1.77 billion.
Sears narrows loss in Q2; sales continue falling
Hoffman Estates, Ill. — Sears Holding Corp. reported Thursday a loss of $132 million for the quarter ended July 28, narrowed from a loss of $146 million in the year-ago period. The retailer cited expense cutting and reduced inventory for the performance improvement.
The company’s adjusted results met analysts’ forecasts but revenue missed on falling sales at Sears and Kmart stores. Sales dropped 7% to $9.47 billion, missing Wall Street’s $9.68 billion forecast. Same-store sales at U.S. Sears stores fell 2.9%, and at Kmart stores they fell 4.7%.
Sears Canada same-store sales dropped 7.1%. Partial spin-off of Sears Holding’s interest in the Canada division is slated to close in the second half of the year.
Wal-Mart Q2 profit rises, but sales miss Street
Bentonville, Ark. — Wal-Mart Stores reported Thursday that net income for the second quarter rose 5.7% to $4.02 billion, compared with $3.8 billion in the year-ago period. Total revenue increased 4.5% to $114.3 billion, but missed Wall Street’s forecasted $115.8 billion in revenue.
Same-store sales in the quarter advanced 2.2%, edging Wall Street expectations but trailing last quarter’s 2.6% same-store sales gain.
Price-cutting in the challenging economy has impacted the world’s largest retailer. CEO Mike Duke told investors that U.S. consumers will continue to shop for the lowest prices.
"Given continuing economic pressures, we believe that our price leadership and value are growing in importance to customers across income levels," Duke said in a statement.
Sales in the U.S. rose 3.8% to $67.35 in the quarter. For the overall U.S. business, same-store sales rose 2.5%, including a 4.7% increase at Sam’s Club warehouses. Analysts had expected 2.6%.
Wal-Mart has raised its profit outlook for the year, although it said it would delay store expansion plans in Mexico, as it continues to battle allegations of bribery there.