Posted on: Friday, February 20, 2004

Wal-Mart, Target see profitable 4th quarter

By David Hammer
Associated Press

LITTLE ROCK, Ark. — Wal-Mart Stores Inc. overcame a tough pre-Christmas retailing environment to post an 8.4 percent gain in its fourth-quarter profit, while rival Target Corp. reported a 21 percent jump in earnings on robust business at its flagship discount chain.

Wal-Mart, the world's biggest retailer, said yesterday its earnings rose to $2.72 billion, or 63 cents a share, for the three months ended Jan. 31, up from $2.51 billion, or 57 cents a share, a year ago.

Its revenue rose more than 12 percent to $75.2 billion from $66.9 billion a year ago. Sales in its U.S. stores open at least a year were up 4.8 percent. That measure is considered a good indicator of retail health.

Minneapolis-based Target, meanwhile, saw its profits surge in the fourth quarter, as a robust performance at its discount store offset continued sluggish results at its Marshall Field's and Mervyn's stores.

Target said yesterday it earned $832 million, or 91 cents per share, for the three months ended Jan. 31, up from $688 million, or 75 cents per share, in the same quarter a year earlier.

Revenue increased 10.7 percent to $15.57 billion for the quarter from $14.06 billion in the year-ago period. Same-store sales for the quarter increased 4.9 percent.