(Includes industrywide results from Thomson Reuters.)
DOW JONES NEWSWIRES
The vast majority of retailers reporting November same-store
sales missed analysts' muted expectations after last year's plunge,
and the industry as a whole eked out a slight increase from
prior-year levels.
The performance comes after what many viewed as a mixed kickoff
to the holiday shopping season, with shoppers on average spending
7.9% less than the Black Friday weekend of 2008, according to the
National Retail Federation. In general, lower-priced items were
favored.
That continues a trend of less-expensive retailers, be they
discounters or lower-priced apparel sellers, outperforming other
chains in the past year. But Costco Wholesale Corp. (COST) saw
weakness in November after two months of solid growth, as
same-store sales were flat in the U.S. excluding gasoline for the
warehouse club. Its shares fell 2.7% premarket.
Smaller rival BJ's Wholesale Club Inc. (BJ), which has been
outperforming Costco of late, also reported weaker-than-expected
results with its 1% growth. Its stock dropped 2.2%.
But discount-apparel chains TJX Cos. (TJX) and Ross Stores Inc.
(ROST) continued their recent strength with both reporting 8%
increases, though TJX's gain was less than forecast by
analysts.
This November's 0.5% increase industrywide, according to Thomson
Reuters, follow last year's 7.8% slump as the stock market swooned.
Both figures exclude Wal-Mart Stores Inc. (WMT), which stopped
issuing monthly sales figures earlier this year. The last forecast
from analysts surveyed by Thomson Reuters was 2.1% growth.
Among department stores, Kohl's Corp. (KSS) had a 3.3% climb in
same-store sales, topping expectations, while Macy's Inc. (M) and
J.C. Penney Co. (JCP) had declines bigger than analysts
projected.
Target Corp. (TGT) reported a bigger-than-anticipated 1.5% drop,
as Chairman and Chief Executive Gregg Steinhafel said weakness the
first three weeks of November was "substantially offset by
better-than-expected sales during our post-Thanksgiving Two-Day
sale." Shares fell 1.6%.
Limited Brands Inc. (LTD) surprised analysts for the second time
in three months by posting same-store sales growth--3% in November
after a 12% slump last year. A gain posted in September was the
first for the Victoria's Secret and Bath & Body Works parent in
two years. The company said it saw "record sales" on Black Friday,
helping Limited avoid a potential same-store-sales drop for
November. It added merchandise margins were "up significantly" in
the month.
As it did for November, Limited projected December same-store
sales falling by the low- to mid-single digits on a percentage
basis. Shares added 2.2%.
Pier 1 Imports Inc. (PIR), which has been posting improved
results this year after a string of loses earlier this decade, said
same-store sales for its fiscal third quarter ended Saturday jumped
14% after last year's 18% tumble. President and Chief Executive
Alex Smith said the home-furnishings company saw building strength
throughout the quarter, "culminating in a very strong Thanksgiving
weekend." Its stock jumped 11% premarket.
While Gap Inc. (GPS) reported flat results, in line with
expectations, teen apparel chain Abercrombie & Fitch Co. (ANF)
posted a much bigger-than-expected 17% slide in November same-store
sales. And Children's Place Retail Stores Inc. (PLCE) reported a
13% swoon, not the average 1% gain analysts anticipated. Its shares
fell 9.6% while Abercrombie dropped 7.4%.
-By Kevin Kingsbury, Dow Jones Newswires; 212-416-2354;
kevin.kingsbury@dowjones.com