RETAIL
October Sales Results Mixed
October, the month of the popular Halloween holiday, wasn’t as scary as some expected but didn’t offer a lot of treats either.
U.S. retail sales increased 4.6 percent in October, according to the International Council of Shopping Centers, a shopping-center trade group.
“An improving economy continues to be the main driver of stronger consumer demand compared with last year,” said Jesse Tron, an ICSC spokesman. He blamed gas prices for pulling the reins on the month’s retail sales. In October 2013, ICSC reported that retail sales prices increased 4.1 percent.
Glenn Murphy, Gap Inc.’s chairman and chief executive officer, expressed dismay at his company’s performance in October. Gap Inc.’s same-store sales declined 3 percent when the company reported $1.26 billion in net sales in October.
“While we were disappointed in our October sales results, particularly at Gap, we look forward to presenting our improved product collections for the holiday season across all our brands,” Murphy said.
The Buckle chain of premium boutiques reported a 4.4 percent drop in same-store sales in October. However, many stores did well during the month. L Brands, the parent brand of Victoria’s Secret and Bed Bath & Beyond, posted same-store sales of 3 percent in October. Zumiez Inc. reported a 3.1 percent increase in its October same-store sales.
Adrienne Yih-Tennant, a high-profile retail analyst, worried about discounts that retailers offered during October. “We believe October has been challenging for retailers, particularly after Columbus Day, and expect comps to be below expectations. Despite October’s clearance nature, we are concerned with an increase in “deeper” promos [year over year], especially as inventories were well-controlled entering [third quarter],” she wrote in a Nov. 5 research note for Janney Capital Markets.
Some companies also reported quarterly earnings on Nov. 6. Bebe Stores Inc. reported a slight increase of 0.7 percent during the first quarter of its fiscal 2015 year. Net sales were $102.2 million, which, however, was a decrease of 6.5 percent from $109.3 million in the same quarter in the previous fiscal year.
