New York, NY, August 3, 2006--Retailers posted solid July sales growth sent consumers back into the stores. The outlook for the back-to-school season however remains uncertain as higher gasoline prices and rising interest rates are still expected to challenge shoppers.
Wal-Mart confirmed that its July sales rose better-than-expected same-store-sales of 2.4 percent. The company cut prices on school supplies and clothing to lure cost-conscious shoppers.
The company’s CFO, Tom Schoewe, said that the company continues to prioritize spending on food and consumables and they responded early to price breaks for essential back-to-school supplies,"
Target reported July same-sales-sales that increased 3.1 percent,. Analysts had expecting a 3.5 percent gain. The company had lowered its forecast to a range of 3 percent to 4 percent in mid-July, down from its initial estimate of 4 percent to 6 percent growth. Total sales for the four weeks ended July 29 rose 9.6 percent to $3.94 billion.
Costco, the largest warehouse club operator, posted a 7 percent same-store sales gain, slightly below Wall Street forecasts for a 7.3 percent gain. Total sales for the four-week period that ended on July 30 rose 11 percent to $4.48 billion.
Penney posted a 4.9 percent gain in same-store sales in its department store business, above the 3.0 estimate. The company reported all merchandise divisions had sales gains, with family shoes, women's accessories and men's apparel having the best performance.
Federated Department Stores reported a 3.3 percent rise in July same-store sales. Analysts, on average, had been expecting it to post an increase of 2.9 percent. The company’s total sales were $1.61 billion for the four weeks ended July 29, up 61.3 percent from the year-ago period.
High end retailer Saks reported same-store sales that rose 2.4 percent in July.
Analysts were looking for an increase of 2.8 percent. Total July sales were off 36 percent to $216.4 million.
Nordstrom Inc. said same-store sales increased 5.3percent. Analysts expected 4.5 percent.
Pier 1 Imports said its same-store sales fell 14.9 percent in July, marking the sixth straight month of declines. Analysts on average had expected the company to post a same-store sales decrease of 9.7 percent. The company said total sales for the four weeks ended on July 29 fell 12.9 percent to $113.1 million.
