Sluggish Same-Store Sales

Elena
08 Mar, 2007
New York City

Wal-Mart Stores said Thursday its February same-store sales rose 0.9%, missing estimates of an increase by 1.5%. Warehouse retailer Costco Wholesale reported 4% rise in its February same-store sales, missing the average analyst estimate of 5.1% growth. Limited Brands said Thursday its February same-store sales rose 3%, coming shy of analyst estimates of same-store sales increase by 4%.

[R]8:15AM U.S. Retailers posted disappointing March same-store sales.[/R]
U.S. largest chain stores started reporting sluggish same-store sales amid rough and choppy shopping in February. Unseasonably cold weather in February dampened lightweight apparel sales. Wal-Mart Stores Inc. ((WMT)) said Thursday its February same-store sales rose 0.9%, missing estimates of an increase by 1.5%. Total company sales for the four weeks ended March 2 rose 8.1% to $26.79 billion. The retailer projected March same-store sales are to rise between 1% and 2%.

Warehouse retailer Costco Wholesale ((COST)) reported 4% in its February same-store sales, missing the average analyst estimate of 5.1% growth.

Limited Brands Inc. ((LTD)) said Thursday its February same-store sales rose 3%, coming shy of analyst estimates of same-store sales increase by 4%. Net sales for the four weeks ended March 3 rose to $730.5 million from $635.8 million.

Bebe Stores ((BEBE)) posted a 2.2% decline in same-store sales, its first monthly decline in 46 months, down from expetations of a 2.2% gain.

The Gap ((GPS)) said same-store sales fell 4% in February, beating estimates of a drop of 4.8% for the month. Total sales for the four weeks ended March 3 slumped 5% to $910 million from $865 million in the same period a year earlier.

Pacific Sunwear of California ((PSUN)) announced a 5.7% decline in its February sales at stores open at least one year, missing the average analyst expectations of same-store sales drop of 3.7%.Total sales for the four weeks ended March 3 rose 1.2% to $88.7 million.

Pier 1 Imports ((PIR)) said its February same-store sales slipped 8.4%. Analysts had expected comparable-store sales to drop 4.4%. Total sales reached $120.5 million, an increase of 14.3%.

Sharper Image Corp. ((SHRP)) said Thursday its February same-store sales plunged 24%, coming in below forecast of a 16.7% decline. Total sales for the month ended Feb. 28 fell 29% to $22.1 million.

Meanwhile, high-end stores continued to shine. Nordstrom ((JWN)) reported a 9.1% jump in same-store sales in February, beating the 5.7% estimate.


[R]6:30AM Europe was higher Thursday morning on commodities, earnings.[/R]
European markets advanced on Thursday morning. The German DAX Xetra 30 rose 0.4% at 6,646.51, the French CAC 40 rose 0.5% at 5,481.55 and the U.K. FTSE 100 rose 0.4% at 6,179.90.

Advancers

Suez, which is trying to merge with Gaz de France, advanced 1.3%. The firm announced its profit grew an above-forecast 43.5% to 3.6 billion euros, a record high, on cost reduction measures. Aegon advanced after reporting a 19% profit rise and Anglo Irish Bank climbed after saying first-half earnings per share should rise 40%.

BP was up 1.2% extending gains from Wednesday on an unexpected dwindling of U.S. energy inventories. Veolia shares added 1.5% as a 23.5% dividend hike to 1.05 euros a share offset a below-forecast profit increase of 22% to 759 million euros. PPR the owner of French department stores and the luxury goods group Gucci, gained 1.4% having said its annual profit rose a stronger-than-forecast 28%.

Decliners

Carrefour, one of the most volatile stocks on Wednesday, were flat although it said 2006 profit jumped 58% to 2.27 billion euros or up an in-line 3% when excluding sale of its Korean operations. Pernod Ricard shares slipped 3.9% after the maker of Martell brandy reported a below-forecast 2.4% first-half profit rise.

Oil and gold

Crude oil traded near $62 a barrel in New York on speculation that gasoline demand will rise as the summer driving season approaches in the U.S. Crude oil for April delivery rose 5 cents to $61.87 a barrel on the New York Mercantile Exchange in early trade in London. Brent crude fell 1 cent to $62.49 a barrel on the ICE Futures exchange in London. Gold opened Thursday at a bid price of $652.35 a troy ounce, up from $647.50 late Wednesday.

Currencies

The euro has risen 0.8% against the dollar in the past month to $1.3150 on the premise the central bank will increase its main refinancing rate to 3.75% from 3.50%. The yen dropped to 154.08 per euro in London from 152.93 in New York late yesterday. It fell to 117.15 against the dollar from 116.06. The pound gained against the yen and climbed for a third day versus the dollar before interest-rate setting meeting today by the Bank of England. Against the yen, the pound rose to 226.10 and was at 225.69 by in London from 224.35 late yesterday. The pound advanced against the dollar, trading at $1.9347 compared with 1.9330 yesterday.