CHICAGO, Aug. 10, 2011 /PRNewswire/ -- Today, Zacks Equity
Research discusses the Retail, including Macy's, Inc. (NYSE:
M), Nordstrom Inc. (NYSE: JWN), Limited Brands Inc.
(NYSE: LTD), Kohl's Corp. (NYSE: KSS) and Gap Inc.
(NYSE: GPS).
(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)
A synopsis of today's Industry Outlook is presented below. The
full article can be read at
http://www.zacks.com/stock/news/58714/Retail+Industry+Stock+Outlook+-+August+2011
The retail industry is well positioned to face another year of
challenges and utilize to the fullest the opportunities made
available by the economic recovery, even as the quality and pace of
the recovery has left much to be desired. Despite continued
problems, consumers are slowly gaining confidence in the market and
increasing their spending power, which is helping retail sales show
signs of recovery.
According to projections by the National Retail Federation
(NRF), retail industry sales are expected to grow 4% from the 2010
levels, with strength in the holiday season and some improvement
overall driving most of the gains. According to the NRF, retailers
ended fiscal 2010 on a strong note due to the good holiday season
that set them up for improved growth in the recovering economy.
However, inflationary pressures from high commodity prices despite
some recent easing and continued high unemployment remain headwinds
for the economic recovery.
Having stabilized their financial positions, retailers now are
well positioned to bring newer concepts to the store. We expect
retailers to remain focused on having better supply chain and
leaner inventory levels. Those who execute will stand out in the
end.
Retail is basically a volume game. Going forward, with the
competition intensifying and the costs scaling up, the players who
are able to cater to the needs of consumers grow volumes by
ensuring foot traffic, cut costs and weather competition will have
the final advantage.
Macy's, Inc. (NYSE: M), reported same-store sales growth
of 5.0%. Total sales were up 5.7% to $1.6
billion. An increase in online sales added to the surge in
same-store sales growth.
Nordstrom Inc.'s (NYSE: JWN) same-store sales for
July 2011 increased 6.6% compared
with the same month last year. Total retail sales were $993 million, up 11.5% from $890 million in July
2011.
Limited Brands Inc. (NYSE: LTD), a specialty retailer of
women's intimate and other apparel, beauty and personal care
products recently posted a 6% increase in comparable-store sales
for July 2011. Total sales for the
period came in at $660.4 million for
the period compared to $619.7 million
last year.
Generally, retail companies have been under pressure in the
recent downturn due to high inventory, lack of consumer spending
due to weak disposable incomes and rising commodity prices. These
companies have still not been able to offset these difficulties and
are reporting flat or declining sales trends.
Kohl's Corp. (NYSE: KSS), value-oriented specialty
department store offering moderately priced, exclusive and national
brand apparel, shoes, accessories, beauty and home products in an
exciting shopping environment, reported that company's
comparable-store sales for July 2011
inched down 4.6% with total sales plummeting 2.9% to $1,122.0 million.
Gap Inc. (NYSE: GPS) a premier international specialty
retailer offering a diverse range of clothing, accessories, and
personal care products, reported a 5% decrease in same-store sales
for the four-week period ended July 30,
2011. The company reported flat net sales growth for the
period.
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