DOW JONES NEWSWIRES
Retailers posted another month of falling same-store sales as
May's figures came in below analysts' dour expectations, with
results hurt by last year's federal stimulus checks goosing those
sales and the continuing spending malaise among consumers.
But some analysts had hoped results would show some gains from
the warmer-than-normal May weather across much of the U.S.
Among the worst performers was Children's Place Retail Stores
Inc. (PLCE), which posted a 9% drop. Analysts surveyed by Thomson
Reuters, on average, anticipated flat results. The retailer's
shares fell 7.2% premarket to $32.
Conversely, lower-price department-store operator Kohl's Corp.
(KSS) reported a scant 0.4% same-store-sales decline, much smaller
than was expected. Accessories were cited as the biggest factor.
Its shares were flat.
The industry's results were also the first without Wal-Mart
Stores Inc. (WMT) in 30 years. The world's largest retailer said
last month it would stop giving month sales data, following the
lead of other smaller peers in recent years. But Macy's Inc. (M)
last fall began giving such data again, saying the economic turmoil
warranted its investors getting a more-often read on the company's
performance.
Department stores, for more than a year the laggard among the
various retail segments, largely held to form as Macy's had a 9.1%
same-store-sales drop while J.C. Penney Co. (JCP) reported an 8.2%
decline. Luxury retailer Saks Inc. (SKS) posted a 27% plunge,
nearly double the projected drop.
Discounters, which have largely been holding up amid the
recession, reported largely lower results as well. Costco Wholesale
Corp. (COST) had a 7% drop on sharply lower gasoline prices and the
stronger dollar. But even excluding gas, U.S. same-store sales
dropped 1% with weakness in more-discretionary categories. That was
partially due to the average TV sale price slumping 39%, though
most of that was made up by a 48% increase in unit volume.
However, smaller rival BJ's Wholesale Club Inc. (BJ) continued
its recent outperformance, reporting 4% same-store-sales growth
excluding gasoline. Target Corp. (TGT), though, maintained its woes
with a worse-than-expected 6.1% decline and a similar drop is seen
for June.
On the apparel side, closeout-chain operators TJX Cos. (TJX) and
Ross Stores Inc. (ROST) reported gains of 5% and 4%, respectively
as consumers gravitate to lower-priced wares. Others reported
weaker results.
Abercrombie & Fitch (ANF) reported another month of dour
results, posting a 28% same-store-sales drop, compared with
analysts' expectations of a 24% decline. The company hasn't
reported growth since April 2008 and is increasingly shedding its
no-markdown mantra. But cheaper rival Aeropostale Inc. (ARO)
maintained its recent gains, smashing expectations with a 19% jump
for May.
And Buckle Inc. (BKE) continued its streak, generating its
22nd-straight month of double-digit growth. The 13% increase comes
on top of last year's 34% surge at the teen- and 20s-focused
purveyor of trendy tops and edgy jeans and footwear.
-By Kevin Kingsbury, Dow Jones Newswires; 201-938-2136;
kevin.kingsbury@dowjones.com