Wal-Mart and Target earnings up

Wal-Mart Stores and Target, the two largest US discount retailers, said second- quarter earnings rose after offering fewer price cuts on merchandise including clothing.

Net income climbed 16% and sales increased 11% to $70.5 billion Wal-Mart said. Target’s profit almost quadrupled because of a gain from the sale of its Marshall Field’s department-store chain.

The retailers controlled inventory, reducing the number of clearance sales on summer clothing. That helped the companies boost gross margins as comparable sales gains slow amid rising gasoline prices.