By Karen Talley and Victoria Stilwell
U.S. retailers are turning in mixed results for June, as
momentum that was seen earlier in the year has waned.
The less robust sales growth appears in part to be the result of
warm weather purchases being made earlier than usual this year
because of the unseasonably warm winter.
June also saw mixed weather and even steep promotions during the
month did not bring out consumers in droves, which meant that at
least some summer wear languished on shelves. There have also been
signs of stress in the economy.
"Last year, weather broke late and June benefited from pent up
demand," said Daniel Binder, retail analyst at Jefferies. "This has
created a tougher comparison especially since weather broke earlier
in the year."
Costco Wholesale Corp. (COST), a barometer of goods ranging from
food to apparel, reported U.S. same-store sales excluding fuel rose
3%, when 3.5% was expected. The company said it was hurt by the
timing of Independence Day, given last year the holiday fell on the
first Monday of the July reporting period and pre-holiday shopping
was captured in June. Costco said regions with the strongest sales
included the Midwest and Northwest.
But Limited Brands Inc. (LTD) continued its streak, with the
operator of Victoria's Secret and Bath & Body Works posting
June same-store sales growth of 7%, more than double expectations
for a 2.4% gain. The company's Victoria's Secret direct sales
segment swung to a comparable store sales gain as other divisions
including Bath & Body Works and Limited Brands saw smaller
increases than the same period last year.
The 18 retailers tracked by Thomson Reuters are expected to
report a 2.4% gain in June same-store sales, the smallest monthly
growth in almost three years and compared with 7.7% growth a year
ago. The retailers are up against the most difficult comparison in
nearly five years.
Department store Stage Stores Inc. (SSI) reported a 3.3%
increase in comparable-store sales when 2.7% was expected. The
company said sales were broad based, with cosmetics, footwear, home
and gifts and men's categories exceeding the company average.
Geographically, the Northeast, South Central, which includes Texas,
and Southwest regions outperformed, the company said.
Teen retailer Buckle Inc. (BKE) posted its first same-store
sales decline in two-and-a-half years, with its 2.5% decline coming
in worse than the Street's expectations for sales to be flat.
Write to Karen Talley at karen.talley@dowjones.com