New York–While retailers are still reporting in on their June sales figures–most of which turned out to be a mixed bag–market analysts say many retail channels returned to promotions and discounting to spure sales with cautious consumers.
“Many retailers pulled out all of the stops with respect to promos in June,” said Brian Sozzi, retail analyst at Wall Street Strategies. “During our store walks throughout the month, the level of promotions picked up relative to previous months.”
Department stores posted the largest increase of any retail channel last month, gaining an average of 5.8%, while some mass merchant and discounters showed only modest increases.
Out of the 28 stores reporting today, 44% beat analysts’ expectations, while 56% missed expectations. Thomson Reuters said.
Retail analysts use comparisons of sales in stores open at least a year is a key indicator of a retailer’s performance because it excludes results from stores that open or close during the year.
Among the store reporting June results today are:
• Macy’s Inc. said that revenue at its stores open at least a year climbed 6.5% in June, beating Wall Street forecasts of 6.1% increase. Overall revenue for the month rose 9% to $2.23 billion from $2.04 billion in June last year. The company said it expects revenue from locations open at least a year to climb 4.5% for the second quarter and 3 to 3.5% for the year.
•The Bon-Ton Stores Inc. reported revenue in its stores open at least one year rose 1.4% in June. Total revenue rose about 1% to $244.4 million from $241.5 million last year. So far this year, The 278-unit store’s revenue in stores open at least a year rose 1.9% from the same period a year earlier, and total revenue rose nearly 2% to $1.09 billion, up from $1.08 billion.
•Dillard’s Inc. said same store revenue rose 2% in June, beating analysts’ expectations for a decline. Total sales the month also rose 2% to $506.4 million from $497.2 million. Year to date, revenue in stores open at least one year rose 2% while total sales edged up 1% to $2.37 billion.
•Kohl’s reported sales at stores opened at least for a year, grew 5.9% in the month. Total sales for the five weeks ended July 3 increased 9.1% to $1.605 billion from last year’s $1.471 billion. Footwear was one of the strongest performing categories, the company reported. For the year-to-date period, Kohl’s total sales were $6.978 billion, up 9.6% from $6.365 billion in the previous year, while comparable store sales growth was 6.2%
•Nordstrom said that revenue at stores open at least a year climbed 14.1% in June, beating Wall Street expectations of a rise 9.6%. Overall revenue for the month climbed 19.8% to $822 million, up from $686 million last year. The Seattle retailer said its results were boosted in part because its “Half-Yearly Sale” on women’s and children’s clothing was held nearly a week later than in 2009.
•JCPenney said its June same-store sales rose 4.5% due to strong apparel sales, beating Wall Street’s prediction of a 3.4% increase.
•Saks Inc. said its June revenue in stores open at least a year rose 2.5%, exceeding Wall Street forecasts for a 2% rise.
•Gap Inc said its same-store sales were flat in June, but that net sales were 2% ahead of last year. Net sales for the month were $1.31 billion, up from $1.29 billion a year ago. By division, comparable store sales were down 3% at Gap North America, rose 6% at Banana Republic North America, and stayed flat at Old Navy North America and in the international division.
• Abercrombie & Fitch said same-store sales for June rose jumped 9% –more than triple the 2.8% analyst average. Total sales for the five weeks ended July 3 increased 23% to $277.3 million.
•Wet Seal Inc.’s June sales dropped 3.6%, below projections, and the teen retailer said it sees second-quarter earnings below its previous estimates.
•Target Corp. said that its June sales at stores open at least one year rose 1.7%. Net sales for the five weeks ended July 3 rose 4% to $5.92 billion.
•Ross Stores Inc. said June revenue climbed 5% at its stores open at least a year as customers bought more items for their homes along with dresses and shoes. Overall revenue from the month rose 9% to $725 million from $666 million. Ross also boosted its second-quarter saying it expects July revenue at stores open at least a year to climb 3% to 4%.
•TJX Companies said June revenue in stores open at least a year rose 3%– less than the 4.2% analysts expected. The company, which operates the Marshall’s, T.J. Maxx and HomeGoods chains, raised its second-quarter and full-year guidance. Total sales for the five-week period that ended July 3 rose 7% to $2 billion from $1.8 billion last year.
•Costco Wholesale Corp. reported an increase of 4% in the comparable sales for the month of June. The company reported net sales of $7.33 billion for the month, an increase of 7% from $6.87 billion last year.
•BJ’s Wholesale Club Inc. reported that June same-store sales rose 3.8% as net sales climbed 7.9% to $1.08 billion from $1 billion in the year-earlier month.