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), Saks Inc. (SKS) and Fred's Inc. (FRED) reported increase in comparable store sales for October, while J.C. Penney Co. Inc. (JCP) reported a decline in comparable store sales that was lower than anticipated. Meanwhile, Macy's Inc. (M) and Dillard's, Inc. (DDS) 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.
In early October, the Plano, Texas-based company had reported a 1.4% decline in its comparable store sales and a 0.6% decline in total monthly sales for the month of September .
For the thirteen weeks ended October 31, 2009, J.C. Penney reported a 3.2% decline in total sales to $4.18 billion from $4.32 billion a year ago. Analysts expected the company to report revenues of $4.17 billion for the quarter. .
Comparable store sales for the thirteen weeks declined 4.6%, compared to a 10.1% decline in the same period of the prior year.
For the thirty nine weeks ended October 31, J.C. Penney's total sales dropped 5.7% to $12.01 billion. Comparable store sales was down 7.2% for the period from a 7.3% decline in the year-ago period.
Looking ahead, J.C. Penney has forecast comparable store sales for the month of November to decline 4%-7%. In November 2008, the company had reported a 11.9% decrease in comparable store sales.
For the third quarter, the company now has forecast earnings in a range of $0.10-$0.11 per share, including a charge of about $0.03 per share related to non-recurring real estate impairments. The company had earlier forecast earnings for the quarter in a range of $0.03-$0.10 per share. Analysts polled by Thomson Reuters expect the company to report earnings for the third quarter of $0.11 per share. Analysts' estimates typically exclude special items.
Kohl's Corp. (KSS) reported a 1.4% increase in comparable store sales and a 4.9% increase in total sales for the month of October. Last month, the company's comparable store sales increased 5.5% for September, while total sales for the month grew 9.6%.
The Wisconsin-based company said sales for the four-week month ended October 31, 2009 rose to $1.27 billion from $1.21 billion in the four-week month ended November 1, 2008.
Total sales for the third quarter increased 6.5% to $4.05 billion from $3.80 billion in the prior-year period, and topped analysts' consensus revenue estimate of $4.00 billion. Comparable store sales for the third quarter increased 2.4%.
Kohl's total sales for the year-to-date period grew 3.1% to $11.50 billion from $11.15 billion in the year-ago period, while comparable store sales declined 1.3%.
Buoyed by the sales results for October as well as strong inventory and expense management, Kohl's raised its earnings outlook for the third quarter to a range of $0.60-$0.61 per share from the prior range of $0.52-$0.54 per share. In the year-ago quarter, the company had reported earnings of $0.52 per share. Analysts polled by Thomson Reuters expect the company to report earnings of $0.57 per share.
Saks Inc (SKS) said that comparable store sales for October increased 0.7%, while owned sales for the month increased 1.8% to $219.8 million from $216.0 million a year ago. For September, the company had reported a 11.6% decrease in comparable store sales and a 10.2% decline in owned sales.
For the third quarter ended October 31, 2009, the New York-based company's comparable store sales declined 10.1%. Owned sales for the quarter totaled $622.7 million, down 8.7% from $682.0 million in the prior-year period. Analysts expected the company to report revenues of $620.46 million for the quarter.
On a year-to-date basis, for the nine months ended October 31, 2009, Saks' comparable store sales decreased 18.5%. Owned sales for the period declined 17.5% to $1.79 billion from $2.18 billion in the year-ago period. Looking ahead, Saks maintained its forecast for comparable store sales to decline in the mid-to-high single digit range in aggregate for the second half of fiscal year 2009.
Fred's Inc. (FRED) said its October comparable store sales rose 0.4%, compared to an increase of 1.3% in the same period last year. Total sales for the month declined slightly to $128.1 million from $128.4 million in the prior-year period. For the month of September, the company had reported a 3.3% increase in comparable store sales and a 4% increase in total sales.
The Memphis, Tennessee-based company's comparable store sales for the third quarter increased 1.0% compared with a 1.4% increase in the third quarter last year. Total sales for the third quarter were $422.7 million, up 1% from $418.1 million in the prior year period. Analysts expected the company to report revenues of $425.76 million for the quarter.
Fred's total sales for the year-to-date period decreased 1% to $1.32 billion from $1.33 billion for the same period last year. Excluding stores closed, total sales from ongoing stores increased 1% in the first nine months of 2009 compared to the year-ago period. On a comparable store basis, year-to-date sales increased 0.8% compared with 2.9% in the same period last year.
Dillard's, Inc. (DDS) reported an 8% decline in comparable store sales for the month of October. Merchandise sales for the month declined 10.9% to $361.69 million from $406.05 million a year ago. For September, the company had reported a 6% decrease in comparable store sales and a 9% fall in total sales.
For the thirteen weeks ended October 31, 2009, the Little Rock, Arkansas-based company's comparable sales decreased 9%. Total sales for the period declined 11.4% to $1.31 billion from $1.48 billion in the prior-year period.
For the thirty nine weeks ended October 31, comparable store sales decreased 12%. Total sales for the period were $4.09 billion, down 14% from $4.76 billion in the same period last year.
In early October, the National Retail Federation or NRF forecast holiday retail industry sales to decline 1% in 2009 to $437.6 billion. While this number falls significantly below the ten-year average of 3.39% holiday season growth, the decline is not expected to be as dramatic as last year's 3.4% drop in holiday retail sales nor as severe as the 3.0%t decline in annual retail industry sales expected for all of 2009.
NRF also forecasts the majority of holiday shoppers, or 70.1%, will purchase from discounters this year, though more than half of holiday shoppers, or about 55.8%, will also shop at department stores.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.