US retailers on Thursday reported lackluster sales for the month of December, as the since-resolved fiscal cliff spooked customers during the crucial holiday shopping season.
Macy's, Kohl's, Gap, Nordstrom, Ross Stores, TJX, and Limited Brands reported only modest sales increases. Sales declines were seen at Wet Seal, while Target remained flat.
Most results were largely higher than analysts' estimates, but Target, Limited Brands and Wet Seal missed.
The month of December saw strong sales early on, but that tapered off towards the end of the month as the threat of automatic tax increases made for some penny-pinching.
Comparable-store sales or comps is a key retail industry performance metric to gauge activity at store locations that have been open for at least a year. Analysts polled by Thomson Reuters expected the retailer's comparable store sales to increase 3.3 percent in December, down from last December's 4.2 percent growth.
Among discount retailers, Target Corp. (TGT) reported that comparable store sales for the month 'were essentially flat', missing analysts' expectations for a 0.8 percent growth. Total monthly sales edged up 0.8 percent to $10.21 billion from the prior-year month.
"December sales were slightly below our expectations, as strong results late in the month did not completely offset softness in the first three weeks," Target Chairman, President and CEO Gregg Steinhafel said.
Among department store chains, Kohl's Corp. (KSS) reported a 3.4 percent increase in total comparable sales for the month, while the Street expected a 1.3 percent increase. Total sales grew 4.0 percent year-over-year to $3.37 billion, with e-commerce business surging 46 percent over last year.
Macy's (M) same-store sales for December increased 4.1 percent over last year, just topping the 4 percent growth analysts were expecting. Net sales grew 3.6 percent to $5.10 billion from a year ago. Online sales (macys.com and bloomingdales.com combined) were up 51.7 percent in December. Online sales are included in the same-store sales calculation for Macy's.
"Last month was our fourth consecutive December with same-store sales growth, which is indicative of the sustainability of our key business strategies," Macy's Chairman, President and CEO Terry Lundgren noted.
Specialty apparel retailer Gap, Inc.'s (GPS) December comparable sales were up 5 percent, with three of its four brands reporting positive comparable sales. Gap International sales were weak. Street was looking for a 3.5 percent increase. Net sales grew 5 percent to $2.08 billion from the prior-year month.
"Customers responded favorably to our product offerings and promotions during the holiday season overall," Gap Chairman and CEO Glenn Murphy noted.
Specialty retailer to young women, Wet Seal, Inc. (WTSLA) stated its comparable sales declined 9.7 percent in the month, while analysts estimate was for only a 5.0 percent drop. Total net sales also declined 8.3 percent to $73.0 million from last year. However, e-commerce sales grew 10.4 percent.
Fashion specialty retailer Nordstrom, Inc. (JWN) reported an 8.6 percent rise in same-store sales for December, well above analysts' estimate for a 3.6 percent growth. Preliminary total retail sales for the month were $1.72 billion, up 9.4 percent from last year.
Apparel retailer Limited Brands, Inc. (LTD), the operator of Victoria's Secret and Bath & Body Works chains, said its December comparable store sales rose a mere 3 percent, reflecting the strength of its Bath & Body Works chains, partially offset by flat sales at Victoria's Secret Stores and weakness at La Senza. The result missed Street expectations of a 4.5 percent growth. Net sales were $1.95 billion, up from $1.87 billion last year.
Off-price retailer TJX Cos., Inc. (TJX) reported that December comps were up 6 percent, topping Street estimates for a 2.3 percent increase. Total sales increased 10 percent from last year to $3.6 billion.
Another discount retailer, Ross Stores, Inc. (ROST) said December same-store sales increased 6 percent, topping Street estimates for a growth of 2.7 percent. Sales also came in ahead of the company's expectations for a 2 to 3 percent increase. Total sales rose 11 percent to $1.276 billion from a year ago.
Looking ahead, the company continues to project comparable store sales gains of 1 to 2 percent for the month of January.
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