Retailers Shudder From Cold May '02 Sales
Retailers were singing the blues in May over inclement weather, which stunted U.S. retail sales, especially of Summer apparel, and the shaky economy may prove more troublesome for retailers in the months ahead, said analysts. The bright side of the picture was that leaner inventories meant retailers weren’t discounting merchandise so heavily.
Ann Taylor Stores Corp. said margins grew in May on strong sales of full-priced merchandise. Discounters vaulted ahead of most retailers in sales as consumers stocked up on staples more than apparel. Wal-Mart Stores Inc. posted a better-than-expected 6.2 percent gain in same-store sales. A challenging environment didn’t stop Kohl’s from posting an 8.7 percent increase in same-store sales, exceeding analysts’ expectations of a 5.3 percent gain.
Meanwhile, department stores fell short of their sales goals. Federated Department Stores Inc. reported a 3.4 percent drop in same-store sales, worse than analysts’ expectations of a 0.5 percent drop. Same-store sales at May Department Stores Co. plunged 7.6 percent.
Specialty retailers also struggled. Gap Inc., which for the past two years recorded same-store sales declines, posted a 9.0 percent slide in May. Bebe Stores said same-store sales fell 7.3 percent. Retailers focusing on the younger market fared better. Wet Seal Inc. reported a 7.3 percent jump in same-store sales, and Pacific Sunwear announced a 3.1 percent increase in same-store sales, citing strength in footwear and girls’ pants, knits, tanks and capris. —Nola Sarkisian-Miller
