(RTTNews) - Department store operators posted mixed same-store results for the month of October as consumers continued to exercise restraint amid job losses and an unemployment rate that is close to 10%. October is not a typically strong sales period for retailers being a transitional month between the two largest selling seasons of the year: back-to-school and Christmas. U.S. retailers use the month to clear out fall merchandise and make room for holiday floor sets.
However, some of the retailers reported an increase in sales compared to the same period last year, when the industry posted a 4.1% decline in same store sales for the month of October 2008. Investors consider comparable-store sales the best measure of retail health because they exclude the effect of location openings and closings in the intervening months.
Among the department store operators, Kohl's Corp. (KSS:
News ), Saks Inc. (SKS:
News ) and Fred's Inc. (FRED:
News ) reported increase in comparable store sales for October, while J.C. Penney Co. Inc. (JCP:
News ) reported a decline in comparable store sales that was lower than anticipated. Meanwhile, Macy's Inc. (M:
News ) and Dillard's, Inc. (DDS:
News ) reported decline in same-store sales.
Macy's Inc. (M) on Thursday reported a 0.8% decline in same-stores and 1.3% decline in total sales for the month of October. The company's total sales declined to $1.69 billion for the four weeks ended October 3, 2009, from $1.71 billion reported in the same period last year. Online sales at macys.com and bloomingdales.com combined were up 34.6% in the month.
The results were, however, an improvement from September, when Macy's reported a 2.3% decline in same-store sales and a 2.4% downturn in total sales.
For the third quarter of 2009, Macy's same stores were down 3.6%. Total sales for the quarter declined 3.9% to $5.28 billion from $5.49 billion a year ago, but came in above analysts' consensus revenue estimate of $5.21 billion for the quarter.
Online sales increased 21.1% in the third quarter and positively affected the company's same-store sales by 0.6 percentage points.
For the year-to-date period, the company's same store sales declined 7.5%. Total sales for the period declined 7.8% to $15.64 billion from $16.96 billion in the same period last year. Online sales increased 15.6% in the period and positively impacted same-store sales.
J.C. Penney Co. Inc. (JCP) reported a 4.5% decline in its comparable store sales for the month of October, better than its guidance of a decrease of 5%-8%. This compares to a 13% decline in same store sales for the same period last year. The company also reported a 3.5% decline in total company sales for October.
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