Luxury, Department Stores May Sales Weakest

123jump.com Staff
06 Jun, 2009
New York City

Retailers struggle to entice consumers as the U.S. economy continues to shed more jobs. Luxury and department stores lead the declines in the month and year-to-date sales. Discount same store sales increases have moderated as consumers look for ways to trim purchases.

[R]12:50 PM New York – Retailers struggle to entice consumers as the U.S. economy continues to shed more jobs. Luxury and department stores lead the declines in the month and year-to-date sales. Discount same store sales increases have moderated as consumers look for ways to trim purchases.[/R]

Retailers struggle for sales in May only reflected the larger struggle that consumers face. Across the nations job losses are widespread and manufacturing sector continues to shed jobs.

Luxury and department store led the declines in May. Even the discount stores did not escape from the same store sales decline. Teenage retailers and select apparel stores managed to report monthly and year-to-date sales increase.

Abercrombie Fitch reported the worst same store sales decline of 28% followed by losses of 26.6% at Saks and 13.1% at Nordstrom.

Aeropostale sales increased 19% and at Ross gained 4%. The Gap, Target and Costco reported more than 6% decline in sales.

Discount Stores Sales Struggle

BJ''s Wholesale Club, Inc. ((BJ)) same store sales in May decreased 6.8%, including negative impact from sales of gasoline of 10.8%. Excluding gasoline sales, merchandise club comparable sales rose 4.0%.

Total sales in the month decreased 4.7% from a year ago to $783.4 million.

Excluding sales of gasoline, traffic increased approximately 5% and the average transaction amount was approximately flat to last year. Sales of food increased 6% on strong sale of perishable foods. Sales of general merchandise rose 1%.

Costco Wholesale Corp. ((COST)) reported May net sales decreased 5% to $5.47 billion.

Comparable sales in the month in the U.S. locations fell 6% and at international locations decreased 7% and across the company declined 7%.

Excluding the gasoline and currency variations, comparable sales fell 1% in the month in the U.S. and rose 7% at international locations and increased 1% across the company.

Target Corporation ((TGT)) net retail sales in May decreased 2.3% to $4.46 billion from a prior year month. The comparable sales in May fell 6.1%.

Wal-Mart Stores will no longer declare monthly same store sales but will provide quarterly same store sales increase.

Department Stores Sales Decline Accelerate

Macy''s, Inc ((M)) May same store sales fell 9.1%. Total sales declined 9.5% to $1.74 billion compared to $1.93 billion for the month of year ago.

For the year to date, total sales were $6.94 billion, a decrease of 9.5% from $7.67 billion from the year ago period. For the year-to-date same-store sales fell 9.1%.

Macy''s online sales in April gained 12.2% and for the year surged 15.2%.

J. C. Penney Company, Inc. ((JCP)) reported comparable store sales decreased 8.2% for the four week period ended May 30 compared to a decline of 4.4% from a year ago month. Total sales in April declined 6.7%.

Sales for the first thirteen weeks declined 6.1% compared to a fall of 4.5% and comparable sales decreased 7.7% compared to a fall of 6.6% in the quarter a year ago.

For the five-week period ending July 4, 2009, the company expects same store sales to fall between 9% and 12%.

Kohl’s Corporation ((KSS)) reported total sales for the four-week period ended May 30, 2009 increased 4.1% from a year ago. On a comparable basis same store sales fell 0.4% in the month.

Total sales for the year to-date rose 1.3% and on a comparable store basis, sales for the year decreased 3.2%.

Luxury Sales Drop the Most

Dillard''s, Inc. ((DDS)) reported sales for the four weeks ended May 30, 2009 declined 14% to $430 million compared to a year ago period. Comparable same store sales fell 12%.

For the seventeen weeks ended May 30, sales decreased 15% to $1.47 billion from a year ago period. For the period, comparable same store sales declined 13%.

Saks Inc. ((SKS)) total sales for the four weeks to May 30 decreased 25.8% to $166.1 million compared to $223.9 million in the month last year. Comparable store sales fell 26.6% for the month.

For the year-to-date ended May 30, 2009 total sales declined 26.7% to $781.1 million compared to $1,066.4 million in the prior year period. Comparable same store sales decreased 27.4% for the fiscal year.

Nordstrom, Inc. ((JWN)) preliminary sales for the four-week period ended May 30 decreased 8.7% to $653 million from $716 million in the month a year ago. Same store sales fell 13.1% in the month.

Preliminary year-to-date sales decreased 9.1% to $2.36 billion compared to $2.59 billion in the first quarter 2008. For the year-to-date same store sales decreased 13.2%.

Teenage Apparel Retailers, the Only Gainers

Aeropostale, Inc. ((ARO)) net sales for the four-week period ended May 30 increased 30% to $132.9 million from $102.3 million in the month a year ago. Same store sales increased 19% for the month meeting the sales rise in the month a year ago.

Year to date total net sales increased 23% to $541.0 million from $438.7 million in the year ago period. Year to date same store sales increased 13% compared to increase of 9% in the period of year ago.

American Eagle Outfitters, Inc. ((AEO)) for the four-week period ended May 30 sales decreased 2% to $195.5 million from $200.0 million in the month a year ago.

Comparable same store sales decreased 7% in the month compared to a declined of 9% in the month a year ago.

Total year-to-date in the seventeen week period decreased 4% to $807.5 million compared to $840.4 million in the year ago period. Comparable same stores sales decreased 9% for the year compared to the same period last year.

Management reiterating guidance of second quarter earnings per share to be 12 cent to 15 cent compared to 29 cent last year.

Abercrombie & Fitch Co. ((ANF)) reported net sales in the four-week period ended May 30 fell 22% to $182.1 million from $233.1 million prior month period. Comparable store sales decreased 28%. May direct-to-consumer total net sales decreased 10% to $15.6 million from a year ago month.

Year-to-date sales decreased 23% to $794.2 million from $1.033 billion in the year ago period. Comparable year-to-date sales fell 29%. For the year-to-date direct-to-consumer net sales decreased 19% to $64.7 million.

The Buckle, Inc ((BKE)) comparable sales in the months increased 13.4% from a year ago.

Net sales in the month increased 19.2% to $60.6 million from net sales of $50.8 million for the same period of year ago.

Year-to-date seventeen-week period comparable store net sales for the period ended May 30, 2009 increased 16.7% from the period a year ago. Net sales for the seventeen-week period ended May 30, 2009 increased 23.3% to $260.2 million from net sales of $211.1 million for the prior year period.

The Cato Corporation ((CTR)) sales in the four-week period ending in May 30 decreased 3% to $78.1 million compared to $80.5 million for the four week period ended May 31, 2008. Comparable store sales for the month fell 3%.

Sales for the seventeen weeks ended May 30, 2009 increased 3% to $316.2 million from $306.3 million for the period of year ago. Year-to-date comparable store sales decreased 1% compared to the prior year.

The Children’s Place Retail Stores, Inc ((PLCE)) net sales in four-week period ending on May 30 decreased 7% to $101.7 million from $109.4 million a year ago. Comparable store sales for May decreased 9% compared to 12% increase in the month year ago.

Comparable store sales for May in the U.S. fell 9%, in Canada decreased 7% and online sales rose 1%.

The Gap, Inc ((GPS)) net sales declined 5% to $1.03 billion for the four-week period ended on May 30 compared with net sales of $1.09 billion for the same period a year ago.

The comparable store sales for May decreased 6% compared to fall of 14% in the prior year month.

Comparable store sales at Gap North America locations declined 11%, at Banana Republic North America fell 14%, at Old Navy North America rose 3% and at international locations fell 7%.

Year-to-date seventeen-week period ended May 30, 2009 net sales fell 7% to $4.16 billion compared with net sales of $4.47 billion in the year ago month and comparable sales in the year-to-date declined 7% and fell 12% in the quarter a year ago.

Hot Topic, Inc ((HOTT)) reported comparable sales decreased 6.3% for four weeks period ended May 30, 2009. Net sales decreased 3.1% to $33.5 million compared to same period of year ago.

Destination Maternity Corp, formerly Mothers Work, Inc. ((DEST)) net sales in May decreased 5.3% to $51.3 million from $54.2 million a year ago. Comparable store sales decreased 5.4% in the period compared to prior year month.

Limited Brands, Inc. ((LTD)) comparable store sales fell 7% to $618.7 million for the five weeks ended May 30, 2009.

The company reported for the seventeen-week comparable store sales decreased 7% to $2.34 billion.

Stein Mart, Inc ((SMRT)) comparable store sales in May rose 0.2%. Total sales fell 2.8% from a year ago month to $105.4 million.

Stage Stores, Inc. ((SSI)) net sales in four-week period ending May 30 decreased 4.7% to $116.8 million from $122.6 million a year ago. Comparable store sales for May decreased 7.2% compared to 0.1% increase in the month year ago.

For the year-to-date comparable store sales fell 8.6% to $450.3 million from $476.1 million from year ago.

Discount Apparel Sales Sustain Momentum

The TJX Companies, Inc ((TJX)) May sales increased 4% to $1.49 billion.

For the seventeen-week period to May 30 sales increased 1% to $5.84 billion from a year ago. Comparable store sales for four-week period ended May 30, 2009 rose 5% and for seventeen-week period to May 30 comparable store sales increased 3% from year ago.

Ross Stores, Inc ((ROST)) May sales increased 10% to $564 million compared to $513 million a year ago. Same store sales rose 4% in the month.

For the seventeen weeks ended May 30, 2009 sales increased 9% to $2.26 billion from $2.07 billion in the nine weeks ended May 31, 2008. Comparable store sales increased 3%.

Walgreen Anemic Same Store Sales

Walgreen Company ((WAG)) reported May sales increased 6.1% to $5.37 billion from $5.06 billion a year ago period. Comparable same stores increased 1.0% and sales at front-end of the stores rose 0.2%.

Total pharmacy sales increased 6.3% while comparable pharmacy sales increased 1.5% in the month. Comparable pharmacy sales were negatively impacted by 4.5% points due to generic drug introductions in the last twelve months. Total prescriptions filled at comparable stores increased 2.8%.

For the year-to-date sales increased 6.7% to $26.57 billion from $24.90 billion in 2008.

Fiscal 2009 year-to-date sales for the nine months surged 7.2% to $47.68 billion from $44.48 billion. Comparable store sales for the fiscal year-to-date increased 1.9%.

Walgreens opened 43 drugstores during May, including 4 relocations, acquired 38 stores and closed 3. Pharmacy sales accounted for 65.0% of total sales in May.