Post by unlawflcombatnt on Aug 9, 2007 13:20:09 GMT -6
Retailers report sluggish July sales
By ANNE D'INNOCENZIO, AP Business Writer
8/9/07
"The back-to-school shopping season had a disappointing start in July as consumers rattled by a weakening housing market and other financial pressures stayed away from stores and malls.
As merchants reported sluggish monthly sales results Thursday, the weakest performers were mall-based apparel chains, particularly teen merchants like Pacific Sunwear of California Inc. and Wet Seal Inc. Wal-Mart Stores Inc. posted a slim gain but warned that its increased discounting are hurting profit margins....
"The consumer is...feeling the pinch of the housing market and higher gasoline price."
According to the International Council of Shopping Centers-UBS preliminary tally of 48 stores, July results were up 2.6 percent, compared to the 3.9 percent gain in the year-ago period. The tally is based on same-store sales or sales at stores opened at least year, which are considered a key barometer of a retailer's health.
July's results extended the slowing sales trend retailers have experienced since February as consumers are forced to pay more for food and gas. The slumping housing market and a widening credit crunch, both of which have made the stock market turbulent, are also making consumers shy about spending....
The weak sales reports do not bode well for retailers' second-quarter profits, which are slated to be announced starting next week. According to Perkins, second-quarter earnings growth should be up a modest 2.5 percent, ratcheted down from 7.0 percent in early May amid increased discounting and sluggish sales. On Thursday, Talbots Inc. was among several stores that cut earnings forecasts.
Wal-Mart posted a 1.9 percent same-store sales gain....but acknowledged that apparel and home furnishings were again weak and are expected to remain so through the third quarter.
Wal-Mart also said that while customers are responding to price cuts on more than 16,000 products started in July, the heavier discounting is hurting profits...."
Some stores did do well.
"Target Corp.'s same-store sales rose 6.1 percent
Costco reported a 7 percent increase in same-store sales....
J.C. Penney posted a robust 10.8 percent gain in its department store business.....
Nordstrom Inc. reported that same-store sales rose 9.4 percent as the well-heeled customer continues to splurge...."
Others did not do so well.
"Macy's Inc. had a 1.4 percent decline in same-store sales for the month....
Limited posted a 3 percent same-store sales drop....
Gap Inc. fell...7.0 percent...in same-store sales. Analysts had forecast 4.9 percent drop.
Talbots...same-store sales report...showed a 4.8 percent decline....
Abercrombie & Fitch Co.'s same-store sales fell 4 percent....
American Eagle Outfitters....same-store sales fell 6 percent....
Hot Topic had a 7.4 percent decline in same-store sales....
Wet Seal suffered a 7.2 percent decline....
Pacific Sunwear had a 4.6 percent slide....
Bebe Stores Inc. posted a 6.3 percent decline..."
By ANNE D'INNOCENZIO, AP Business Writer
8/9/07
"The back-to-school shopping season had a disappointing start in July as consumers rattled by a weakening housing market and other financial pressures stayed away from stores and malls.
As merchants reported sluggish monthly sales results Thursday, the weakest performers were mall-based apparel chains, particularly teen merchants like Pacific Sunwear of California Inc. and Wet Seal Inc. Wal-Mart Stores Inc. posted a slim gain but warned that its increased discounting are hurting profit margins....
"The consumer is...feeling the pinch of the housing market and higher gasoline price."
According to the International Council of Shopping Centers-UBS preliminary tally of 48 stores, July results were up 2.6 percent, compared to the 3.9 percent gain in the year-ago period. The tally is based on same-store sales or sales at stores opened at least year, which are considered a key barometer of a retailer's health.
July's results extended the slowing sales trend retailers have experienced since February as consumers are forced to pay more for food and gas. The slumping housing market and a widening credit crunch, both of which have made the stock market turbulent, are also making consumers shy about spending....
The weak sales reports do not bode well for retailers' second-quarter profits, which are slated to be announced starting next week. According to Perkins, second-quarter earnings growth should be up a modest 2.5 percent, ratcheted down from 7.0 percent in early May amid increased discounting and sluggish sales. On Thursday, Talbots Inc. was among several stores that cut earnings forecasts.
Wal-Mart posted a 1.9 percent same-store sales gain....but acknowledged that apparel and home furnishings were again weak and are expected to remain so through the third quarter.
Wal-Mart also said that while customers are responding to price cuts on more than 16,000 products started in July, the heavier discounting is hurting profits...."
Some stores did do well.
"Target Corp.'s same-store sales rose 6.1 percent
Costco reported a 7 percent increase in same-store sales....
J.C. Penney posted a robust 10.8 percent gain in its department store business.....
Nordstrom Inc. reported that same-store sales rose 9.4 percent as the well-heeled customer continues to splurge...."
Others did not do so well.
"Macy's Inc. had a 1.4 percent decline in same-store sales for the month....
Limited posted a 3 percent same-store sales drop....
Gap Inc. fell...7.0 percent...in same-store sales. Analysts had forecast 4.9 percent drop.
Talbots...same-store sales report...showed a 4.8 percent decline....
Abercrombie & Fitch Co.'s same-store sales fell 4 percent....
American Eagle Outfitters....same-store sales fell 6 percent....
Hot Topic had a 7.4 percent decline in same-store sales....
Wet Seal suffered a 7.2 percent decline....
Pacific Sunwear had a 4.6 percent slide....
Bebe Stores Inc. posted a 6.3 percent decline..."