UNITED STATES BUREAU OF THE CENSUS

Economic and Statistics Administration, U.S. Department of Commerce

ADVANCE DATA ON LARGE RETAILERS` PROFITS
FOR THE THIRD QUARTER 1998

Availability | Order & Release | QFR Program |

CHART 1:

CHART 2: Retail Profits Per Dollar of Sales

For the third quarter of 1998, these large retail corporations reported after-tax profits of $5.1 billion, down $1.0 (+\-0.2) billion from the preceding quarter, but showing no statistically significant change from the same quarter a year ago. The annual rate of after-tax return on stockholders` equity was 10.8 percent, down 2.0 percent (+\-0.4%) when compared to the second quarter of 1998, but showing no statistically significant change from the third quarter of 1997.

Third quarter 1998 sales were $270.6 billion, showing no statistically significant change from last quarter, but up $16.3 billion or 6.4 percent (+\-1.8%) from the third quarter of 1997.

These data are based on quarterly financial reports obtained from 503 corporations. The figures in this release are not seasonally adjusted. More detailed information on the retail trade sector for the third quarter will be published in the Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations--Fourth Quarter 1998 which is scheduled for release on April 5, 1999.

EXPLANATORY NOTES:

This quarter`s publication contains data revised due to the reclassification of corporations by industry, and revisions that reflect respondents` corrections of data submitted subsequent to original publication.

The data presented in this report are estimated from a sample survey and therefore are subject to sampling variability as well as nonsampling variability such as response error, nonreporting, and coverage errors. Estimates of sampling variability are presented in the publication. A statement such as "up 2.5 (+\-0.1) cents," appearing in the text, indicates the range (+2.4 to +2.6 cents) in which the actual change is likely to have occurred. The range given for the change is a 90 percent confidence interval that accounts only for sampling variability. If the range had contained zero (0), it would have been uncertain whether there was an increase or decrease; that is, the change would not have been statistically significant. For any comparison cited without a confidence interval, the change is statistically significant. The quarterly publication includes more detailed explanations of confidence intervals and sampling variability, along with additional measures of sampling variability.

The complete report, Quarterly Financial Report for Manufacturing, Mining and Trade Corporations, is available for download, under "Products: Publication", at <http://www.census.gov/csd/qfr>.

This press releases is available in page image formatDownload Adobe Acrobat Reader (.pdf). This press release is also available (in text format) on the day of issue through the Department of Commerce`s on-line Economic Bulletin Board (202-482-1986).

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Files are also available on 3.5 inch flexible diskettes from U.S. Department of Commerce, Bureau of the Census (MS1921), P.O. Box 277943, Atlanta, GA 30384-7943 (301-763-INFO(4636)). The annual subscription cost is $84; $66 for the first diskette and $6 for each additional diskette.

                                                     3Q      2Q       3Q
                  Item                             1998    1998(1)  1997(1)
                                                      (million dollars)

Net sales, receipts, and operating revenues.... 270,594  269,487  254,259
Less: Depreciation, depletion, and amortization   5,790    5,663    5,305
Less: All other operating costs and expenses... 252,922  251,614  238,604
                                                
  Income (or loss) from operations.............  11,882   12,210   10,351

Net nonoperating income (expense)..............  (2,965)  (2,089)  (2,356)

  Income (or loss) before income taxes.........   8,917   10,120    7,995

Less: Provision for current and deferred         
  domestic income taxes........................   3,784    4,002    3,021
                                                 
  Income (or loss) after income taxes..........   5,133    6,119    4,974
                                                 
Cash dividends charged to retained earnings       1,181    1,434    1,206
  in current quarter...........................  
                                                 
  Net income retained in business..............   3,952    4,685    3,767
                                                 
Retained earnings at beginning of quarter...... 124,373  122,838  111,474
Other direct credits (or charges) to             
  retained earnings (net)...................... (2,027)  (1,952)    (538)
                                                            
Retained earnings at end of quarter............ 126,298  125,571  114,703

SOURCE: Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations--QFR-98-4.

                                                     3Q     2Q       3Q
                  Item                             1998   1998(1)  1997(1)
                                                          (cents)

Net sales, receipts, and operating revenues....   100.0   100.0    100.0
Less: Depreciation, depletion, and amortization     2.1     2.1      2.1
Less: All other operating costs and expenses...    93.5    93.4     93.8
                                                   
  Income (or loss) from operations.............     4.4     4.5      4.1
                                                  
Net nonoperating income (expense)..............   (1.1)   (0.8)    (0.9)
                                                  
  Income (or loss) before income taxes.........     3.3     3.8      3.1
                                                  
Less: Provision for current and deferred            
  domestic income taxes........................     1.4     1.5      1.2
                                                    
  Income (or loss) after income taxes..........     1.9     2.3      2.0

                                                     3Q      2Q       3Q
                  Item                             1998    1998(1)  1997(1)
                                                          (percent)

Annual rate of profit on stockholders` equity
  at end of period:
    Before income taxes.........................  18.69   21.10    17.88
    After income taxes..........................  10.76   12.76    11.13
                                                            
Annual rate of profit on total assets:                                  
    Before income taxes.........................   6.39    7.56     6.16
    After income taxes..........................   3.68    4.57     3.83

SOURCE: Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations--QFR-98-4.

Schedule of Advance Data Release Dates--1998 & 1999
[1999 Economic Indicator Release Schedule]

  1998
Quarter      Manufacturing, Mining, and Wholesale Trade   Retail Trade
Fourth                             April 5, 1999           April 5, 1999

  1999
Quarter      Manufacturing, Mining, and Wholesale Trade   Retail Trade
First                               June 14, 1999           July 13, 1999
Second                         September 13, 1999        October 13, 1999
Third                           December 13, 1999         (January 2000)
Fourth                             (April? 2000)           (April? 2000)

Questions concerning this advance report should be directed to Contact: Ronald H. Lee (301) 457-3343 or Frank Hartman (301) 457-3379.

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