Department Stores Report Soft Results for June
New York City, The nation’s department stores experienced weak sales in June. Category leader Macy’s Inc. continued to struggle as its same-store sales fell 2.7%. Analysts expected a 0.8% drop. Macy’s itself had expected same-store sales to be flat to down 2%.
“As expected, calendar distortions, lackluster traffic trends and pockets of consumer weakness weighed on June results,” said Morgan Stanley analyst Gregory Melich in a note to investors on Thursday. “Department stores were a relative source of weakness, positing a 2.5% same-store sales decline in June, 0.7% below consensus.”
Kohl’s Corp. said same-store sales fell 4.9% in June, while analysts expected a 2.4% drop. Dillard’s Inc. saw its same-store sales fall 1%. Analysts had predicted a 1.4% rise. Same-store sales at Gottschalks Inc. dropped 4.3% on softness in apparel and home categories.
J.C. Penney Co. said that same-store sales fell 1.5% in June but still beat analyst expectations. Total sales for the five weeks ended July 7 edged down 0.4% to $1.61 billion, from $1.62 billion last year. Children’s and women’s apparel and family footwear were the strongest sellers, while furniture and fine jewelry had weaker sales. Sales improved later in the month, J.C. Penney said.
In the high-end market, Nordstrom Inc. reported same-store sales rose 2%, beating analyst expectations of a 1.1% gain. Saks Inc., reported a 5.6% drop in same-store sales, a bigger drop than the 4.1% analysts predicted.