Eighteen retailers reported their sales growth numbers for May yesterday and today, with the majority beating estimates. Overall, the retailers posted same-store-sales growth of 3.9%, ahead of expectations for 3.6%, according to Thomson Reuters I/B/E/S.
April sales were weak, and the slowdown was blamed on weather and as shift in the Mother’s Day and Easter holidays. It’s unclear if May numbers will give investors more confidence in the sector. Investors have not been kind to many retailers in recent days.
Kohl’s (KSS) posted particularly disappointing results on Thursday, saying same store sales fell 4.2%, 3 percentage points below analysts’ expectations. The company doesn’t expect a rebound in unit sales until back-to-school season:
�May sales were lower than our expectations and, as a result, we now expect second quarter comparable store sales to be modestly negative. From a line of business perspective, we saw strength in Accessories,” said CEO Kevin Mansell in a statement. “Our Men�s and Women�s businesses also outperformed the company average. The South Central and West were the strongest regions. We made some progress in building our inventory levels, but continue to expect lower units to hinder our sales until the Back-to-School season.”
Kohl’s shares slid 4.9%
Costco (COST) posted a 4% same-store-sales gain, below expectations for 4.3%, while Target’s (TGT)� same-store-sales rose 4.4%, ahead of expectations for 3.9%.
TJX (TJX) had one of the most impressive reports, posting an 8% gain, ahead of expectations for 5.3%. Shares were up 1.1%. Barron’s recently said that the company’s “inexpensive branded apparel” put it in a strong position in the current economy.
No comments :
Post a Comment