Wal-Mart Stores Inc.
The discount retailer reported a 3.6 percent increase in second-quarter net income and raised its earnings guidance for the full year as it benefits from cost-cutting and robust global growth in China, Brazil and Mexico.
But a closely watched measure of revenue fell for the fifth consecutive quarter, dragged down by Wal-Mart’s U.S. division, as its main customers have felt the biggest impact of the economy’s woes.
The discounter said Tuesday that it had net income of $3.59 billion, or 97 cents a share, for the period ended July 31. That compares with $3.47 billion, or 89 cents a share, a year ago.
Home Depot Inc.
Modest sales increases helped boost the home-improvement retailer’s second- quarter net income 7 percent. Quarterly net income rose to $1.19 billion, or 72 cents a share, from $1.12 billion, or 66 cents a share, last year.
Abercrombie & Fitch Co.
The preppy retailer returned to a second-quarter profit as its strategy of lowering some prices boosted sales. But its shares fell 9 percent as investors worried about the company’s gross margin eroding and its inventory growing.
The company said Tuesday that it will close 60 stores in the U.S. this year as it expands internationally.
Quarterly net income totaled $19.5 million, or 22 cents a share. A year ago, the company lost $26.7 million, or 9 cents a share.
American Apparel Inc.
The troubled clothing chain said Tuesday that it might not have enough liquidity to sustain itself over the next year. The news pushed shares down nearly 30 percent to a fresh low.
The company also reported Tuesday a preliminary second-quarter loss. For the quarter ended June 30, American Apparel expects a loss of $5 million to $7 million.
