New York, NY, November 3, 2005—Some of the nation’s major retailers reported gains in store sales rose in October, as cooler weather helped clear shelves of fall clothing and seasonal merchandise.
Analysts for the most part were anticipating only modest sales gains during the month.
The International Council of Shopping Centers' October sales tally of 65 retailers rose a better-than-expected 4.4%, above the year-to-date average of 3.9%. The tally is based on sales from stores open at least a year, or same-store sales, widely considered the best metric for measuring retailers' performance.
Wal-Mart reported same store sales for October that were up 4.3%. The results were in line with the company's forecast. Same store sales at the Wal-Mart Stores unit increased 3.9%, while same-store sales at its warehouse discount unit Sam's Club rose 6.7%. Excluding gasoline sales, Sam's Club comparable sales rose 4.8%.
The company said it expects November same-store sales growth in the 3% to 5% range.
Target Corp., the second largest discount chain said its same store sales during the month rose a better than expected 5.7 percent, the company and reaffirmed its earnings outlook for the second half of the fiscal year.
Target said total sales rose 11.6 percent in October to $3.69 billion.
Federated Department Stores posted a 0.7 percent decline in October same-stores sales after some locations were closed due to Hurricane Wilma. Federated said the closures accounted for the loss of approximately 1.7 percent in Federated comparable-store sales in October. The company said it was "cautiously optimistic" for the fourth quarter, and that it expects fourth-quarter same-store sales to increase by 1 to 2 percent over last year.
J.C. Penney said its same store sales rose 2.4 percent in October, and it raised its third-quarter profit forecast to $0.92 per share, up from its earlier plan for $0.84. The company said its expects November same-store sales to show a percentage increase in the low-single digits.
Costco Wholesale said its same store sales worldwide rose 10 percent in October, helped by strong demand for food and pricey gasoline. Analysts on average had expected a 7.9 percent increase.
Kohl's reported same store sales that were up 6.2 percent in October. Total sales were $1.12 billion, up 16.8 percent from $958.2 million in October 2004.
Pier 1 Imports said its same-store sales fell 10.4 percent in October, reflecting the absence of a promotional event that has enhanced sales in the past. Total sales for the month fell 5.5 percent to $137 million from $144.9 million.
High-end retailer Nordstrom said its same-store sales were up 6.4% in October. Neiman Marcus Group Inc. said its comparable revenue rose 7%.
