May Retail Sales Solid for Macy's, Hot Topic
May retail sales increased 5.4 percent on a year-over-year basis, according to the International Council of Shopping Centers, but the sales growth was called strong but uneven by the trade group’s chief economist, Michael Niemira.
“There were a few pockets of weakness at some mid-tier retailers and among apparel retailers,” he said.
May also could be defined as a mixed bag. Hot weather on the East Coast boosted apparel sales during May, but cold and wet weather on the West Coast hurt apparel sales. Easter fell on April 24, later than in previous years, and May apparel sales looked flat in comparison with April sales, according to Michael McNamara, vice president of research and analysis for market researchers MasterCard Advisors Spending Pulse. However, overall, May results still looked good by MasterCard’s research. Total U.S. apparel sales recorded a 5.9 percent year-over-year increase.
Department-store giant Macy’s Inc. reported same-store sales increased 7.4 percent in May. The retailer reported total sales of $1.9 billion for the four weeks ending May 28, which was an increase of 8.5 percent compared with total sales of $1.7 billion for the same time last year.
With this good news, Macy’s increased its guidance for its second quarter. Same-store sales were forecast to increase by 5 percent in the second quarter, compared with the previous guidance of 4 percent in the second quarter.
Teen retailers Hot Topic Inc. and Zumiez Inc. reported solid sales for May. Same-store sales for Hot Topic increased 0.4 percent. The retailer had $42 million in net sales, compared with $42.6 million in net sales in May 2010. Zumiez, based in Everett, Wash., reported a same-store-sales increase of 7.1 percent compared with the same time last year. Its net sales increased 14.9 percent to $30.3 million, compared with $26.3 million last year.
June sales were forecast to be solid by ICSC. Sales will increase by 4 percent to 5 percent with fuel sales included and 3 percent to 4 percent without fuel.—Andrew Asch
