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August Business Tough for Many
August is considered one of the crucial months for the Back-to-School season, and it was tough for many retailers.
The Buckle Inc.—the Nebraska-headquartered purveyor of jeans, footwear and accessories— posted a decline of 14.8 percent for its same-store sales in August. Cato Corp., a Charlotte, N.C., retailer with a fleet of more than 1,300 stores, reported a decline of 8 percent in its same-store sales. “August same-store sales continued our negative trend and remain well below our expectations,” said John Cato, the retailer’s chairman, president and chief executive officer.
Gap Inc.’s Old Navy Global division posted a 1 percent increase for its same-store sales, but its sibling divisions reported declines. Banana Republic Global posted a 10 percent decline, and Gap Global reported a 5 percent decline. Old Navy beat forecasts, however. The discount chain was predicted to report a 1.8 percent decline, said Ken Perkins, president of market-research firm Retail Metrics Inc. Wall Street forecast a drop of 2.4 percent for Banana Republic and a 1.5 percent decline for Gap Global.
L Brands Inc., the parent company of Victoria’s Secret, provided a bright spot for the month’s business. It reported a comp-sales increase of 2 percent during August.
Those companies posting quarterly reports also relayed stories of a tough summer. Abercrombie & Fitch Co. reported a 4 percent decline in its same-store sales for its second quarter of its fiscal year, which was announced Aug. 30 by Arthur Martinez, the company’s executive chairman. “Flagship and tourist locations continued to account for the vast majority of the comparable-sales decline as traffic remained a significant headwind,” he said.
Bebe Stores Inc. also reported a tough quarter. On Sept. 1, the San Francisco Bay Area–headquartered company announced its fourth-quarter results for its 2016 fiscal year. Same-store sales decreased 4.6 percent during the quarter.
