June Sales Mixed
June delivered a mixed bag for sales performances.
Retailers such as The Buckle Inc. and Steinmart Inc. reported what some analysts believed were surprise performances, and their respective same-store sales increased 2.4 percent and 1.9 percent.
However, Wall Street analysts contended that retailers such as Zumiez Inc. disappointed. The Washington state–based mall retailer of action sportswear, hard goods and accessories reported a decline of 2.2 percent. Gap Inc. reported a 1 percent decline in same-store sales. The company’s Old Navy Global division reported a 1 percent increase in same-store sales. Its Banana Republic Global division also reported a 1 percent increase in same-store sales. However, the company’s namesake brand, Gap Global, posted same-store-sales declines of 5 percent.
Ken Perkins of Retail Metrics wrote in a July 9 research note that his company’s index missed expectations for the fifth time out of the six first months of the year. “Retailers are struggling to gain their footing in this environment, where consumers are feeling better but still have limited discretionary funds at their disposal,” he wrote.
In a July 8 retail note, Perkins wrote that Father’s Day and the lead-up to the Fourth of July weekend provided short bursts of retail activity during June, but it was not enough to fuel high sales across the board.
While June probably won’t be remembered as a spectacular month for retail sales, Liz Pierce of Brean Capital believed that the month would lead into a good Back-to-School season.
“More teens had jobs versus a year ago,” she wrote. In June 2014, there was a peak level of unemployment of 21.8 percent for youth aged 16 to 19 across America, she wrote in a July 6 research note. She wrote that youth unemployment declined to 17.9 percent recently.
