[Home] [Headlines] [Latest Articles] [Latest Comments] [Post] [Mail] [Sign-in] [Setup] [Help] [Register]
|
Status: Not Logged In; Sign In
Business Title: Retailers' Sept. Sales Strong, Raising Holiday Hopes NEW YORK (Dow Jones)--Back-to-school buying finally arrived, aided by plenty of promotions, with most retailers' posting September sales that were ahead of expectations and raising hopes for the holidays. Teen retailers, most vulnerable to the fall season, were being joined by department stores and general apparel retailers in producing strong numbers, suggesting that some pent up buying demand was released. But the sales that retailers wrung up in September came at a cost, with the extremely promotional environment appearing to have sparked extra buying. "Consumers remained highly value-centric and purchased largely only with coupon in hand or because of special offers," said Thomas Filandro, retail analyst at Susquehanna Financial Group. Several retailers, including BJ's Wholesale Club Inc. (BJ), TJX Cos. (TJX) and Wet Seal Inc. (WTSLA) noted that sales fell off after strength earlier in the month. The slowdown could cause a pause in October before the resumption of buying for the holiday season. Various projections put sales gains for the November to December period between 2% to 3.5%. Retailers themselves continue to remain cautious. J.C. Penney Co. (JCP), while posting a 5.1% rise in sales at stores open at least a year, when a 3.1% gain was expected, cited "the continuation of a highly competitive promotional environment and ongoing volatility with regard to consumer discretionary spending." Among other department stores, Macy's Inc. (M), Nordstrom Inc. (JWN) and Saks Inc. (SKS) all exceeded analysts' expectations, while Kohl's Corp. (KSS), which has been a perrennial front runner, came up just a bit short. Mass merchant Target Corp. (TGT) missed projections, posting a 1.3% rise, when a 1.9% gain was expected, although the company said it expects initiatives like 5% rebates on credit card purchases to increase its market share during the upcoming holiday season. Teen retailers, the most vulnerable group to the back to school buying, turned in consistently better-than-expected numbers, reflecting the later start to the season and the kinds of promotions they were presenting. Some of the stores were offering discounts on top of already marked down merchandise towards the end of the month. Zumiez Inc. (ZUMZ) and American Eagle Outfitters Inc. (AEO) raised their-quarter earnings guidance after turning in strong numbers. Among others in the group, Aeropostale Inc. (ARO) posted a 3% rise in sales when a 2.4% decline was expected, Hot Topic (HOTT) posted a 2.6% drop, when a 3.5% decline was projected; and Wet Seal's sales declined 0.7% when analysts were expecting a 2.3% drop. Limited Brands Inc. (LTD), which counts adults and teens among its shoppers, smashed through estimates, posting a 12% rise in sales when 4.1% was expected. The company's Victoria's Secret unit led the upsurge, posting 13% growth, followed closely by Bath & Body Works at 11%. The 28 retailers tracked by Thomson Reuters ended up showing a 2.8% rise for September at stores open more than a year, beating expectations for a 2.1% gain. Wal-Mart Stores Inc. (WMT) is not included in the group. Retailers as a group were up against the first positive comparable store sales number in a year, when September 2009 showed a 0.6% advance. While the year-ago gain was small, there is still significance in beating a positive number because it can supply a psychological boost amid what is still a lot of downbeat sentiment, said Mike Berry, director of industry research for the SpendingPulse unit of MasterCard Inc. (MA). "Anything that can perhaps be viewed as positive news can perhaps make a difference." Still, "We're seeing a continuation of consumers buying close to their needs, in this case back to school," Berry said. J.C. Penney Chief Executive Myron Ullman had said earlier in the month that the company exceeded internal expectations for back-to-school sales. And, "Obviously, back-to-school is equivalent to holiday for the 'young businesses,' young men's, juniors and the kids businesses," Ullman said.
Post Comment Private Reply Ignore Thread Top • Page Up • Full Thread • Page Down • Bottom/Latest Begin Trace Mode for Comment # 1.
#1. To: Brian S (#0)
The GDP is collapsing as we speak. " That a depression was in the cards has been foreseeable for decades. The distortions cranked into the system in the ‘60s – the era of “guns and butter” spending by the government – resulted in the tumult of the ‘70s. Things could, and one could argue should, have come unglued then. But they didn’t, for a number of reasons that have only become clear in retrospect:" zerohedge.com That we'll never get out of it. When that knowledge hits critical mass will be when the crash comes.
There are no replies to Comment # 1. End Trace Mode for Comment # 1.
Top • Page Up • Full Thread • Page Down • Bottom/Latest |
|
[Home] [Headlines] [Latest Articles] [Latest Comments] [Post] [Mail] [Sign-in] [Setup] [Help] [Register]
|