Retailers Post Soft Sales in June

New York, NY, July 12, 2007--The nation's retailers posted generally disappointing sales for June, reflecting elevated gasoline process and a weak housing market.

According to Thomson Financial's latest sales tally, 12 retailers beat results, while 16 merchants missed projections.

Wal-Mart had a 2.4 percent gain in same-store sales, beating the 0.8 percent predicted by analysts polled by Thomson Financial. The company said its aggressive price-reduction strategy helped boost results, and it promised more aggressive price cuts for the back-to-school season.

"Consumers continue to be challenged financially, with more pressure on discretionary spending," said Eduardo Castro-Wright, Wal-Mart Stores U.S. president and chief executive officer, in a statement.

"Gas prices have moved to be their chief concern in our latest survey and they appreciate the opportunity to save on everything."

Target Corp. posted a 3.3 percent increase for June. The company said two weeks ago sales would likely come in at the low end of its 3 percent to percent forecast. July sales are seen climbing 5 percent to 7 percent.

Costco reported a 6 percent gain in same-store sales, in line with the 6.1 percent estimate.

J.C. Penney had a 1.5 percent decline in same-store sales in its department store business, less than the 3.6 percent analysts expected. The retailer said sales picked up toward the end of the month, reflecting a strong initial response to back-to-school merchandise.

Macy’s reported a 2.7 percent drop in same-store sales, worse than its forecast of flat to down 2 percent. The firm sees July sales flat to down 3 percent and second-quarter earnings of 20 cents to 30 cents a share. The prior forecast was 35 cents to 45 cents.

Nordstrom posted a 2 percent increase; it had forecast sales growth under 2 percent because the June reporting period began a week later this year than in 2006.