Retailers Post Weak Sales
The nation's consumers, uninspired by this season's fashions and rattled by high gas prices and the weak housing market, shopped gingerly last month, extending the misery of retailers who have struggled with a spending slowdown since February.
As merchants reported their June sales results Thursday, the disappointments cut across many segments of the industry including Macy's Inc., AnnTaylor Stores Corp. and trendy apparel chain Bebe Stores Inc. One notable exception was Wal-Mart Stores Inc., whose renewed emphasis on low prices helped drive sales gains above analysts' expectations. Meanwhile, Costco Wholesale Corp. reported a 6 percent gain in same-store sales, in line with the 6.1 percent estimate.
Macy's suffered a 2.7 percent drop in same-stores sales, worse than the 0.8 percent decline expected.
J.C. Penney Co. Inc. had a 1.5 percent decline in same-store sales in its department store business, less than the 3.6 percent analysts expected. The retailer said sales picked up toward the end of the month, reflecting a strong initial response to back-to-school merchandise.
Limited Brands had a 3.0 percent gain, slightly better than the 2.9 percent forecast.
AnnTaylor suffered an 8.4 percent drop in same-store sales, dragged down by its lower-priced Loft division. Analysts expected a 4.7 percent decline.
Among teen retailers, Bebe posted a 5.4 percent drop in same-store sales, worse than the 2.2 percent projected decline. But Pacific Sunwear of California Inc. posted a 4.5 percent same-store sales increase, better than the 3.2 percent estimate.
Source: Anne D'Innocenzio, AP Business Writer
posted by Stock Administrator @ 9:23 AM
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