New York, NY, January 4, 2007--The nation’s retailers disclosed mixed same-store-sales growth in December, with lackluster results being reported by Wal-Mart.
The Thomson Financial Same Store Sales Index estimate was a 3% gain in overall same-store sales last month, down from December 2005's 3.3% increase. Excluding Wal-Mart, same-store sales were projected to rise 4.5%, compared with a 4.1% advance a year earlier.
Wal-Mart store reported a 1.3% increase in same-store sales, while Sam's Club had a 3.5% increase. The Wal-Mart segment reported "very strong" results in the electronics and grocery segments. The company said it sees overall same-store sales being up 1% to 2% in January and reiterated its fiscal fourth-quarter earnings outlook of 88 cents to 92 cents a share.
Target reported a 4.1% increase in December same-store sales, compared with its forecast of 3.5% to 5.5% growth. The company said it sees January sales rising 3.5% to 5.5%, adjusted for this year's reporting period including an extra week.
Costco Wholesale posted a 9% increase in same-store sales for the period ended Sunday, compared with estimates for a 5.7% increase.
BJ's Wholesale, the number 3 warehouse club, posted a less-than-forecast 0.6% rise in same-store sales, said it will close its 46 in-club pharmacies and slashed its fourth-quarter earnings outlook.
Federated Department Stores reported a 4.4% increase, raising its December guidance to a 5% to 8% increase. The company said it sees January growth of 1.5% to 3% and fiscal fourth-quarter sales at the low end of expectations.
J.C. Penney reported a 2.6% rise in same-store sales, which was in line with estimates. The company said it sees January same-store sales rising in the low-single digits on a percentage basis.
Same-store-sales at Dillard's were off 5%, marking a sharper drop than expectations. Total sales for the period, ended December 30, fell 3%.
High-end retailer Saks reported December same-store sales that rose 11.1% and total sales that were up 13%.
Nordstrom said its December same-store sales rose 9%, beating analyst’s expectations. Total sales for the five-week period ended December 30 rose 9.8%
Pier 1 reported a wider-than-expected 10.7% drop in same-store sales. Marvin Girouard, Pier 1, CEO said, "although early December sales trends, driven primarily by holiday-related items, were better than we had experienced in prior months, sales of our core home furnishing related items did not improve."
Thomson was expecting discounters excluding Wal-Mart and department stores to post outsized increases, with specialty retailers being a laggard on continued weakness at Pier 1 and Sharper Image Corp., which posted an in-line 20% drop.
