Wal-Mart struggled in first quarter amid tiny profit

Wal-Mart Stores Inc. reported Thursday that its first-quarter profit edged up just slightly, and that the company struggled with a sales slump in its namesake business during the three-month period. The world’s largest retailer blamed a litany of factors affecting its budget-conscious customers, including a payroll tax increase, delayed tax refunds, job worries and bad weather.

Wal-Mart earned $3.78 billion, or $1.14 a share, in the quarter that ended April 30. That compares with $3.74 billion, or $1.09 a share, a year ago. Revenue rose 1 percent to $113.43 billion. That figure excludes Sam’s Club membership fees.

Wal-Mart reported a 1.4 percent drop in revenue at stores open at least a year at its namesake business, which accounts for about 60 percent of the company’s total revenue. 

Dismal quarter illustrates Dell’s challenges

SAN FRANCISCO » Dell Inc.’s financial decay worsened during its latest quarter as the company slashed its personal computer prices in response to the growing popularity of smartphones and tablets.

The dismal performance announced Thursday provided the latest evidence of a technological shift that is making it difficult to sell laptop and desktop machines. Until recently, consumers had regularly replaced machines with faster ones every few years. The money is going instead to powerful, more convenient mobile devices such as phones and tablets. PC makers have had to cut prices sharply, obliterating their profit margins.

Dell’s board of directors is trying to persuade shareholders to accept a $24.4 billion buyout offer from CEO Michael Dell and other investors. Some shareholders say the offer price of $13.65 per share is too low, but Dell’s board contends it’s a good deal in light of challenges facing the company.

Dell earned $130 million, or 7 cents a share, last quarter compared with $635 million, or 36 cents a share, a year earlier. Dell’s revenue dipped 2 percent to $14.1 billion.

J.C. Penney posts bigger loss than expected

NEW YORK » J.C. Penney Co. reported Thursday that it widened its loss in the first quarter on a 16 percent drop in revenue. It marks the fifth-straight quarter that the company has posted large declines. The results show that J.C. Penney is still reeling from the turnaround plan orchestrated by its former CEO Ron Johnson, who was ousted last month after less than a year and a half on the job.

The plan included getting rid of coupons and most sales in favor of everyday low prices, bringing in hip brands and remaking outdated stores. But the changes that were meant to attract younger, wealthier shoppers, wound up turning off its loyal middle-income, middle-age customers who favor sales and basic merchandise like loose-fitting khakis.

Penney last month rehired Johnson’s predecessor, Mike Ullman, who is restoring sales and bringing back basics.

Penney lost $348 million, or $1.58 a share, during the three months that ended May 4. That compares with a loss of $163 million, or 75 cents a share, in the year-ago period. Revenue dropped 16.4 percent to $2.63 billion.

U.S. jobless claims are highest since March

WASHINGTON » The number of Americans seeking unemployment benefits rose 32,000 last week to a seasonally adjusted 360,000, the most since late March. The jump came a week after applications had reached a five-year low.

The less volatile four-week average rose just 1,250 to 339,250, the Labor Department said Thursday.

ON THE MOVE

Hawaii Pacific DEEG has hired Dr. Jordan Popper as its new senior neurological consultant. Popper has his own neurological practice, specializing in pain management.

Aqua Hospitality announced two promotions in its Information Technology department: 

>> Dennis Hall to corporate director from manager.
>> Paul Yuen to manager from network administrator.

Coldwell Banker Pacific Properties has announced that Reed Cromwell has joined the firm’s Leeward office.