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August Sales Show Slowness
Many retailers missed their forecasts for their August comp-store sales. Sales for U.S. retailers were down 0.9 percent in an index compiled by Retail Metrics, a Boston-area market-research company.
Ken Perkins, Retail Metrics’ president, blamed lighter-than-expected traffic at malls for the decline as well as anxiety over international economic headlines such as currency devaluations in China and the stock market plunge.
Gap Inc. reported a 2 percent decline in its same-store sales in August. The Buckle Inc., a denim-focused chain headquartered in Nebraska, posted a 3.3 percent decline in its same-store sales. Florida-based off-pricer Stein Mart Inc. also reported a 1.4 percent drop in its August comparable-store sales.
However, L Brands Inc. delivered some good news for August. It posted a 6 percent gain in same-store sales during the month. L Brands is the parent company to retail chains Victoria’s Secret, Bed & Bath and Henri Bendel.
Zumiez Inc., an action sports–focused chain headquartered in Washington state, which typically is included on California Apparel News’ index, announced it would report its August sales and its 2015 second-quarter sales on Sept. 10.
Sales for the Labor Day weekend, which is one week later than usual, might inject some energy into the retail environment after the dog days of August.
In a Sept. 1 research note, Adrienne Yih of Wolfe Research wrote that retailers’ promotions for Labor Day weekend were not forecast to be as deep as they were in 2014. “August comps thus far incorporate a weak start to the quarter, but building momentum in (the second half of the year) as school starts creates a “need to buy,” she wrote.
Bebe Stores Inc., a contemporary chain headquartered in the San Francisco area, also announced some good financial news. On Aug. 27, it said same-store sales during the fourth quarter of 2015 were up 1.1 percent for its 163 stores compared with the same period last year. Fourth-quarter net sales were $104.3 million, with a $5.2 million net loss, compared with sales of $103.5 million with a $34.5 million net loss during the same period in 2014.
