Sales Rose

It's been months of upheaval for tech company SafeNet Inc.: government inquiries about stock option manipulation, the resignations of top officers, an ownership change and - this week - the indictment of its former president. Yet in many respects, the Harford County company says, business has never been better. The information encryption and security firm, which went private in April amid the fallout from the stock option probe, said it has broken records for revenue and profit in the past two quarters despite the disruptions.

WASHINGTON -- The 40-cent-a- gallon drop in gasoline prices in September masked underlying strength in retail sales reported by the government yesterday. Led by a record 9.3 percent drop in gasoline sales in September, retail sales fell 0.4 percent in nominal terms, the Commerce Department said. After excluding gasoline sales, however, retail sales rose a healthy 0.6 percent. The retail sales figures are not adjusted for inflation. "This is a solid report, indicating that consumer spending is far from suffering the flame-out that many alarmists have been warning of," said Joshua Shapiro, chief economist at MFR research company.

CHICAGO -- Wal-Mart Stores Inc. yesterday posted lower quarterly earnings for the first time in nearly a decade, as charges stemming from its decision to exit Germany offset the gains it enjoyed from consumers' back-to-school shopping. The world's largest retailer also reaffirmed its forecast for the rest of the year but said the second half could be challenging. Wal-Mart said it earned $2.08 billion, or 50 cents a share, down from last year's profit of $2.81 billion, or 67 cents a share.

Sky-high gas prices met their match in April: the Easter holiday. And Easter won. American retailers reported their best monthly sales results in two years yesterday, buoyed by a later-than-usual Easter that nudged purchases of such items as dresses and hams from March to April. Results for stores open at least a year rose an unusually high 6.7 percent compared with the period a year ago, according to Goldman Sachs. Several retailers, including Target (up 10.4 percent), Kohl's (up 13.4 percent)

NEW YORK -- Retailers reported the slowest sales growth in more than a year as cold weather, higher gasoline prices and a late Easter limited spending in March. Wal-Mart Stores Inc. said its comparable sales rose 1.4 percent, less than analyst estimates and the smallest gain in 11 months. Federated Department Stores Inc., Gap Inc., J.C. Penney Co. and Abercrombie & Fitch Co. fell short of estimates, but Target Corp. and Costco Wholesale Corp. exceeded expectations. Stores stocking spring clothing were hurt as turbulent weather swept the U.S. and gasoline prices hit their highest levels of the year.

Shares of Jos. A. Bank Clothiers Inc. dropped sharply yesterday after the menswear chain announced a smaller-than-expected increase in sales. Two investment firms also downgraded the Hampstead company's stock. Jos. A. Bank reported yesterday morning that last month's same-store sales rose 3.8 percent over November last year. Same-store results are from outlets open at least a year. Analysts polled by Thomson Financial had expected an increase of 7.4 percent, causing the company's stock to tumble $6.95, or 13.9 percent, to close at $43.06.

WASHINGTON - U.S. sales of previously owned homes rose 2.7 percent to a record in November, making 2004 the best year ever for housing. Existing homes sold at a 6.94 million annual rate, up from a 6.76 million pace in October, the National Association of Realtors said yesterday. A record 6.14 million existing homes have been sold this year, surpassing the 6.1 million in 2003. Sales rose 6.5 percent in the West to an annual rate of 1.97 million, 1.8 percent in the South to 2.83 million, and 0.7 percent in the Midwest to 1.39 million.

Baltimore-area housing prices posted their largest year-over-year percentage increase on record in November, amid a buying binge that continues to outpace much of the nation. Low interest rates, confidence in job security and continued interest in housing as an investment pushed more buyers into the market, experts said. But economists caution that the area's strong price appreciation will likely slow from double digits next year, when mortgage interest rates are expected to rise. Some agents said that while sales remain healthy, they have slipped from the frenzy of this past summer, when sellers often entertained multiple offers.

ROUND ROCK, Texas - Dell Inc., the world's largest personal-computer maker, said yesterday that its third-quarter profit rose 25 percent, driven by demand for PCs and printers during the back-to-school season. Net income increased to $846 million, or 33 cents a share, from $677 million, or 26 cents, a year earlier, the company said. Sales rose 18 percent to $12.5 billion, matching its August forecast. Chief Executive Officer Kevin B. Rollins said last week that his five year plan to reach $60 billion in annual sales by 2007 is 12 months ahead of schedule.

WASHINGTON - New-home sales rose 9.4 percent last month, the biggest gain since the end of 2000, the Commerce Department said yesterday, as homebuyers continued to take advantage of interest rates of less than 6 percent. Single-family new-home sales increased to an annual pace of 1.184 million last month, led by surging sales in the West and South. Increased sales and a decline in the supply of homes might add to builder backlogs and underpin construction through the end of the year, contributing to economic growth.