With the benefits of government stimulus checks largely exhausted, retailers struggled to make their numbers in July and most fell short of both expectations and their year-ago same-store results.
Wal-Mart Stores Inc. ended the month with a 3 percent comparable-store sales gain in its U.S. unit, excluding fuel, within its own guidance but short of analysts? estimate of a 3.4 percent increase. The company prepared investors for a tough August as well, with its estimate of a 1 to 2 percent boost in U.S. comps. ?We still see volatility from week to week,? said Tom Schoewe, executive vice president and chief financial officer, ?especially around paycheck cycles.?
Target?s comps fell 1.2 percent for the month, while Kohl?s was off 10.4 percent. Despite strength in women?s apparel, family shoes and children?s, J.C. Penney was down 6.5 percent.
Higher-end stores weren?t exempt from the month?s pressures either. Neiman Marcus was down 1.7 percent in July and 1.4 percent for the quarter, while Saks was off 5.3 percent for the month. Nordstrom?s same-store sales dropped 6.1 percent.
Gap Inc.?s comps were down 11 percent, with U.S. Old Navy stores down 16 percent, again showing the steepest declines. Among teen retailers, Abercrombie & Fitch and American Eagle Outfitters were both down 7 percent for the month, but Aeropostale managed a 13 percent increase and Buckle again raised eyebrows with a 20.9 percent advance. Pacific Sunwear of California was off 4 percent.
Limited Brands dropped 5 percent, while Chico?s FAS was down 18.5 percent. Wet Seal finished July with an 8.2 percent same-store sales decline. Among the specialty stores showing comp increases for the month were Mothers Work (2.8 percent) and Cache (2 percent). Off-price specialist Ross Stores registered a 4 percent increase.
Dillard?s reported a 2 percent increase but noted that juniors and children?s were both below the trend. Bon-Ton checked in with a 0.2 percent increase based principally on late-month promotions. Tony Buccina, vice chairman, said, ?The consumer continues to be event- and value-driven, which pressured gross margin performance.
