FINANCE

Wal-Mart Stores broke the retail gloom that has penetrated so many recent first quarter earnings reports as it posted higher than expected earnings and revenue gains, and gave an upbeat view for the current period.

Wal-Mart’s strong performance in a quarter that has challenged so many other retailers, including Target, offered evidence that its efforts to improve its U.S. stores are paying off. Among other things, the giant discounter has increased associate pay and taken moves to ensure its stores are more consistently in stock.

Not all teen apparel retailers are struggling. Just ask American Eagle Outfitters.

The company reported a better-than-expected rise in quarterly sales and profit as demand for its products rose even amid a sluggish retail environment.

American Eagle’s net income surged 39.3% to $40.5 million, or 22 cents per share, in the quarter ended April 30.

Net revenue increased 7% to $749.4 million. Same-store sales increased 6%, on top of a 7% increase in the year-ago period.

Ace Hardware took home "record" first quarter revenues of $1.2 billion in the first quarter, an increase of 4.3% over last year. The message was a little more muddled for earnings. Though its first quarter net income of $26.1 million was down 12.7% year-over-year, that figure was still 12.0% ahead of plan. It was also a planned reduction owing to the timing of promotions.

Target Corp.’s ongoing recovery stalled a bit in the first quarter as the chain joined the list of retailers posting disappointing Q1 sales amid cool, unspring like weather and sluggish retail spending. But it was not all gloom and doom for the discounter, whose online sales continued their upward course and whose profit topped estimates.

Starbucks Corp. has turned to the bond market to fund its sustainable-coffee efforts. The chain issued a $500 million U.S. corporate sustainability bond to fund projtects that will support ethical coffee sourcing. The 10-year, 2.45 percent senior notes, due 2026, will fund programs that ensure coffee is grown and distributed in a way that can be maintained over the long run, such as providing fair pay for workers and protection for wildlife.

In a quarter of strong home improvement demand, Mooresville, North Carolina-based Lowe’s reported net earnings of $884 million for the quarter ended April 29, a 31.4% increase over the same quarter lat year. Sales for the quarter increased 7.8% to $15.2 billion. Comp-store sales increased 7.3% overall, and increased 7.5% for the U.S. business.

Shoppers love a deal – the perception of one anyway – which explains how TJX Companies continues to defy gravity by posting another quarter of strong same store sales growth and improved profitability.

Atlanta-based The Home Depot reported first-quarter sales of $22.8 billion during what CEO Craig Menear described as a "stronger than expected start to the year." Comp-store sales for the quarter were up 6.5% - with comps for the U.S. stores up 7.4%. Net earnings for the three months ended May 1 were $1.8 billion, up 14.2% compared with net earnings of $1.6 billion in the same quarter last year.

Retailers’ margins could be under pressure during the first quarter as a new index tracking promotional selling shows full price sales have declined and promotional activity has increased.

Retailers are relying heavily on discounts and promotions so for this year, continuing the trend from the 2015 holiday season of pulling the promotional lever far too often, according an analysis of $5 billion in consumer transactions from January through March conducted by DynamicAction.

Lowe’s takeover of Canadian home improvement chain gets regulatory OK With regulatory hurdles out of the way, Lowe's Cos. is one step closer to completing its acquisition of Canadian home improvement retailer Rona Inc. Lowe's has officially been granted approval under the Investment Canada Act and clearance from the Competition Bureau. Rone operates nearly 500 stores in Canada.