Early Reports: January Sales Sluggish
January’s retail business was forecast to be sluggish by respected trade groups such as the International Council of Shopping Centers. Most companies will announce their sales Feb. 7, but companies releasing sales early reported some solid business for the first month of the year.
Mall-based skate and snow retailer Zumiez Inc. announced its same-store sales increased 2.6 percent in January, compared with 11.1 percent last year. The Lynnwood, Wash.–based company announced net sales of $50.3 million in January, compared with $31.8 million last year. Zumiez also announced on Feb. 6 that it raised its fourth-quarter guidance of net income per diluted share to be $0.65 to $0.66, compared with a previous guidance of $0.59 to $0.62.
City of Industry, Calif.–based Hot Topic Inc. also announced results for its fourth fiscal quarter, a 14-week period that ended Feb. 2.Net sales for the fourth quarter were $233 million. Same-store sales for the quarter increased 2.6 percent, compared with 1.9 percent the previous year.
Last week, the ICSC and Goldman Sachs released their weekly chain-store-sales index and found that sales declined 1 percent in the week ending Jan. 26 compared with the previous week.Sales for every week in January declined, said Michael Niemira, ICSC vice president of research and chief economist. He blamed colder-than-usual weather during the month, along with higher fuel prices, for declines in retail sales.—Andrew Asch
