--Kohl's same-store sales drop
--Gap Beats Expectations Again
--Target to no longer report monthly same-store sales
By Karen Talley and Anna Prior
U.S. retail sales showed a lack of gusto in September after two
months of strength as back-to-school buying wound down and shoppers
took a pre-holiday breather.
Target Corp. (TGT) reported same-store sale growth of 2.1% when
2.2% was expected, but said it remains on track to achieve its
third-quarter sales and profit goals. Target also said it will no
longer report monthly same-store sales starting in its new year.
The retailer said just reporting quarterly same-store sales "will
create a longer-term focus and provide greater understanding of our
sales results in the context of our overall financial
performance."
Macy's Inc. (M) reported growth of 2.5% when 3.3% was expected.
"Our sales in the two-month August/September period, which includes
the back-to-school season, were consistent with our positive
year-to-date trend," Chief Executive Terry Lundgren said. "We
continue to feel good about the remainder of our fall season as we
begin to ramp up receipts of fresh inventory for the cooler weather
ahead,"
The 17 retailers tracked by Thomson Reuters reported same-store
sales growth of 0.8% when 1.6% was expected at stores open more
than a year. This compares with an increase of 5.5% a year ago.
Retailers posted a 4.8% rise in July and a 6.1% gain in August.
Department store Kohl's Corp. (KSS) same-store sales fell 2.7%
when a 0.2% decrease was expected. The company said its juniors'
segment "remained challenging" and women's merchandise and
accessories both has subpar performances.
"September is a transition month with back-to-school over and
the holiday shopping not yet begun," said Nancy Liu, retail
strategist at Kurt Salmon. "This means sales can be tempered,
especially with the uncertainty the election throws into the
mix."
Gap Inc. (GPS) continued surpassing expectations, posting a 6%
increase in same-store sales, when a 5.3% rise was expected. All
three of its North American brands --Gap, Banana Republic and Old
Navy -- reported growth, including a 10% rise at Old Navy. Chief
Executive Glenn Murphy said "strong customer response to
trend-right product across all brands" contributed to the positive
North America performance. International same-store sales fell 3%,
when a 0.7% increase was expected.
Off-price retailer TJX Cos. (TJX) posted a 6% increase in
same-store sales, ahead of expectations for growth of 4.5%, and
reiterated its third-quarter earnings-per-share guidance, although
it said the results will include an unanticipated two-cent charge
related to its pension accrual for prior fiscal years. Customer
traffic was credited as a main driver of comparable-store sales
growth. TJX Europe was a cited as a standout, with same-store sales
growing 13%.
"We ended the month with great momentum across the board, which
bodes well for the rest of the fall as well as the 2012 holiday
selling season," said Chief Executive Carol Meyrowitz said.
Costco Wholesale Corp. (COST) posted a 5% rise in U.S.
same-store sales minus gasoline, when 5.1% was expected. By
category, food posted growth in the mid-single digit percentage
range, with the strongest results in the category coming from
candy, deli and liquor. Growth was also recorded by health and
beauty, automotive, consumer electronics and hardware. Small
appliances, home furnishings and women's apparel also did well. On
a regional basis, Texas, the Southeast and the Midwest posted the
strongest results, while comparable-store traffic was up about 4%
year-over-year.
Limited Brands Inc. (LTD) reported same-store sales rose 5%,
when 4.3% was expected, continuing a streak of beating
expectations. The retailer was helped by strong sales at its
Victoria's Secret chain, which posted a 6% increase in comparable
sales, though Bath & Body Works also reported strong results,
with a 5% increase when 2.5% was expected.
Upscale retailer Nordstrom Inc. (JWN) posted a 4.4% rise in
same-store sales when 5% growth was expected.
Department-store chain Stage Stores Inc. (SSI) reported an 11.1%
rise in same-store sales when a 2.7% gain was expected. Every
merchandise category marked a comparable-store sales increase, with
footwear, home and gifts, junior sportswear, misses sportswear,
petites and plus sizes leading the way. Geographically, the South
Central, Southwest and Northeast regions all outperformed, the
company said.
Wet Seal Inc. (WTSLA) posted a 12.7% drop in comparable-store
sales when a 15.5% decline was projected. Wet Seal is in the midst
of a proxy battle with hedge-fund manager Clinton Group Inc., which
wants the company to sell itself. Fellow teen retailer Zumiez Inc.
(ZUMZ) reported a 5.6% rise in same-store sales when 3.1% was
expected, helped by higher prices.
September same-store sales at teen-apparel retailer Buckle Inc.
(BKE) fell 0.8% compared to the year-ago period, while an increase
of 1% was expected. Overall transaction values for September were
up about 3%, but the company's biggest category, women's, saw sales
fall. Casual bottoms, woven tops, active apparel, accessories and
footwear were strong performers. While men's total sales were up
2.5%, overall prices were down about 2%. Strong men's categories
included denim, knit shirts and accessories.
Write to Karen Talley at karen.talley@dowjones.com.