Total earnings for the quarter ended May 31 were $4.91 billion, or $1.63 a diluted share.

The results translated to 47 cents a diluted share, up 11.9 percent.

It earned $466 million, or $1.17 per diluted share, on revenue of $3.9 billion.

With the gain, net income was $342.8 million, or $2.59 a diluted share.

For the six months ended July 2, net income was $5.2 million, or $1.02 per diluted share.

That compared with $86 million, or 10 cents a diluted share, for the corresponding period in 1998, the company said.

In the quarter a year earlier, the company earned $465 million, or 48 cents a diluted share.

The retailer's profits rose 26 percent, or $1.25 a diluted share, for the full year.

That is less than half the $235 million, or $2.97 a diluted share, it earned last year on revenues of $13.5 billion.

Net income was $26.6 million, or 7 cents a diluted share.