Bentonville, AR, May 13--Wal-Mart on Thursday reported a 16% increase in earnings for the latest quarter on a 14% rise in sales, which the retailing giant attributed to a strengthening economy and a better apparel environment.
Wal-Mart said its net income rose to $2.16 billion, or 50 cents a share, in its first quarter ended April 30 from $1.86 billion, or 42 cents a share, for the year-earlier quarter.
Sales were $64.8 billion, an increase of 14% from $56.7 billion. U.S.same-store sales rose 6.4%, the company said.
Wal-Mart also cited improving margins for its higher first-quarter results.
The company said income from continuing operations totaled $2.2 billion, or 50 cents a share, up 18% from $1.8 billion, or 41 cents a share, for the year-earlier quarter.
Lee Scott, president and chief executive, said he was "encouraged by the strengthening economy and the improving apparel environment."
Scott said he remains "concerned about the impact higher gasoline and petroleum prices will have on our customers," but he is "optimistic about the balance of the year."
The company said modest price inflation could be ahead. Wal-Mart's suppliers have raised prices recently, and the company has been passing those on to customers.
Wal-Mart experienced double-digit sales and operating-profit growth in all of its units during the first quarter. Operating profit reflects income before interest, unallocated corporate expenses and income taxes.
The Wal-Mart Stores division had sales of $43.57 billion--up 13%--and an operating profit of $3.12 billion, also up 13%. Sam's Club sales rose 11% to $8.64 billion, and operating profit jumped 31% to $267 million.
