In Europe, Diageo's (DEO: chart) net sales dropped by 1% in its fiscal first half, ended Dec. 31, 2004. According to the company, the sales are likely to be down further in the second half. The decline in the U.S. ready-to-drink sales was partly attributed to the earlier fiscal year's lift from the promoted launch of Smirnoff Twisted V drink.

Organic operating-profit growth, excluding the negative effect of acquisitions and currency changes, for the year ended June 30 is seen around 6%. The company's wine unit is growing fast.

In early trading Thursday, Diageo's shares were down 2.2%.

Diageo is slated to post its full-year results on Sept. Currency changes are expected to hit full-year results by around £80 million.

Pepsi Bottling Group Inc. (PBG: chart), the world's largest maker and distributor of Pepsi drinks, said Thursday that second-quarter earnings advanced 4.2% versus last year's, bolstered by the launch of Pepsi Lime and Tropicana Twister.

Net income jumped to $148 million, or 59 cents per share, versus $142 million, or 53 cents per share, last year. Sales rose to $2.86 billion versus $2.68 billion a year earlier. Analysts expected earnings of 56 cents per share on sales of $2.79 billion.

Pepsi Bottling lifted its full-year pro forma operating income growth outlook to a range of 3 - 5%. The company expects pro forma earnings for the year to be $1.82 - $1.88 per share. Including the 53rd extra week, 2005 profit is seen between $1.84 - $1.91 per share. Analysts project full-year earnings of $1.83 per share.

Wal-Mart Stores Inc. (WMT: chart), retailer, said its U.S. comparable-store sales for the five weeks ended July 1 climbed 4.5% vs. last year. For July, the company sees U.S. comparable-store sales advancing by 3% - 5%. The company’s total sales for the five-week period in June were $29.99 billion, up 11.2% compared with $26.97 billion a year ago. The company also agreed with analysts’ profit estimate for the second quarter which is within its earlier announced range of 63 cents to 67 cents a share.

Shares of Wal-Mart shed 42 cents to close at $49.38 on Wednesday.

Big Lots Inc. (BLI: chart), a discount retailer, reported total sales of $408.2 million for the five-weeks ended July 2, up 6.9% from last year. Comparable-store sales advanced 1.1% for the five-week period, disappointing estimates. Big Lots cut its profit outlook and now expects a second-quarter loss from continuing operations of 9 cents to 12 cents a share, and a loss of 18 cents to 22 cents a share for 3Q. For 4Q, the company expects earnings from continuing operations in the range of 54 - 59 cents a share.

Shares of the company fell 22 cents, or 1.6%, to $13.30 on Wednesday.

Empire Online Ltd. (EOL: chart), online gaming company, said net profit in the second quarter advanced to $13 million vs. $7.8 million last year. Gaming revenue climbed to $25.3 million vs. $13.8 million, with poker revenue jumping to $20.3 million vs. $8.3 million a year ago. The number of active players advanced to 126,507 versus 51,367.

J.C. Penney (JCP: chart), department store retailer, said Thursday same-store sales climbed 7.4% in June. Total sales rose $1.54 billion vs. $1.42 billion in the same period a year ago. Looking ahead, the company raised its targets for the second quarter to earnings from continuing operations of 35 - 40 cents a share versus an earlier outlook for a profit of 25 - 30 cents a share.

The stock ended Wednesday at $53.30, off 1.4%.

Applebee's International, Inc. (APPB: chart) on Thursday said total June comparable sales declined 0.3%. Second-quarter earnings are seen at 33-34 cents a share, below the analysts' estimates of 37 cents a share. The company projects year-end earnings of $1.44-$1.47 a share below analysts' expectations of $1.51 a share.

Applebee's stock lost 45 cents to $25.60 Wednesday.

Mercantile Bank Corp. (MBWM: chart) on Thursday reported second-quarter net income of $4.7 million, or 64 cents a share, up 49% versus $3.1 million, or 43 cents a share, a year earlier. Analysts had forecast earnings of 62 cents a share.

The company's stock added 15 cents to $45.05 Wednesday.

BJ's Wholesale Club (BJ: chart), of-price retailer, announced Thursday same-store sales gained 4.3% in June. June total sales advanceed 8.9% to $796.1 million versus $730.9 million in the same month a year ago. The company said it expects earnings for 2Q at the low end of its guidance for a profit of 43 to 46 cents a share due to the weaker-than-planned profitability from gasoline sales.

The stock closed Wednesday at $32.46, down 29 cents.