RETAIL
November Sales Slow
After mixed sales results were reported on Black Friday, which is the day after Thanksgiving and the official start of the holiday retail season, sales results for the entire month of November were announced, and prominent trade organization International Council of Shopping Centers said the month’s sales missed forecasts.
ICSC had predicted that November sales would range from 2.5 percent to 4.5 percent, but U.S. chain-store sales posted a gain of 2.1 percent, according to a tally compiled by the ICSC, said Michael Niemira, chief economist for the trade organization.
“November was a very competitive environment for retailers, and the softness in the November tally suggests some cautiousness by consumers. We expect that the sales momentum will return in December,” he said.
In a statement, Niemira said that apparel sales were weak during the month. Some fashion retailers’ sales reports supported his statement.
L Brands Inc., the parent company of Victoria’s Secret, reported total sales of $988.5 million in November, but it reported a decline of 5 percent in its same-store sales. The Buckle Inc. reported total sales of $101.2 million in November but reported a decline of 0.6 percent in same-store sales for the month. Off-pricer Stein Mart Inc. had a good month. It reported total sales of $119.9 million in November, and its same-store sales increased 3.1 percent.
Retailers reporting quarterly earnings generally reported that business slowed down. On Dec. 5, Pacific Sunwear of California Inc. announced that net sales for its third quarter of fiscal 2013 were $206.6 million, compared with $215.5 million for the same quarter last year. However, its same-store sales increased 1 percent.
On Dec. 4, The Wet Seal Inc. announced results for its fiscal third quarter. Net sales totaled $127.7 million, compared with net sales of $135.5 million in the same quarter last year. Same-store sales declined 0.8 percent during that quarter.
Liz Pierce, a retail analyst with Ascendiant Capital Markets, wrote in a Dec. 5 research note that a tough economy and heavy discounts offered by retailers across the board hurt Wet Seal Inc.’s business during its third quarter, and she lowered her rating from “strong buy” to “buy.” However, she noted that the company’s long-term growth potential was good.
