U.S. retail sales experienced a more-subdued performance in
September after two months of strength as back-to-school buying
wound down and shoppers took a pre-holiday breather.
Costco Wholesale Corp. (COST) posted a 5% rise in U.S.
same-store sales minus gasoline, when 5.1% was expected. By
category, food posted growth in the mid-single digit percentage
range, with the strongest results in the category coming from
candy, deli and liquor. Growth was also recorded by health and
beauty, automotive, consumer electronics and hardware. Small
appliances, home furnishings and women's apparel also did well. On
a regional basis, Texas, the Southeast and the Midwest posted the
strongest results, while comparable-store traffic was up about 4%
year-over-year.
Limited Brands Inc. (LTD) reported same-store sales rose 5%,
when 4.3% was expected, continuing a streak of beating
expectations. The retailer was helped by strong sales at its
Victoria's Secret chain, which posted a 6% increase in comparable
sales, though Bath & Body Works also reported strong results,
with a 5% increase when 2.5% was expected.
The 17 retailers tracked by Thomson Reuters are expected to
report 1.6% growth in September same-store sales, or sales at
stores open more than a year. This compares with an increase of
5.5% a year ago. Retailers posted a 4.8% rise in July and a 6.1%
gain in August.
"Consumers shopped early for back-to-school to take advantage of
favorable weather and aggressive promotional activity," said
Deborah Weinswig, retail analyst at Citigroup.
Department-store chain Stage Stores Inc. (SSI) reported an 11.1%
rise in same-store sales when a 2.7% gain was expected. Every
merchandise category marked a comparable-store sales increase, with
footwear, home and gifts, junior sportswear, misses sportswear,
petites and plus sizes leading the way. Geographically, the South
Central, Southwest and Northeast regions all outperformed, the
company said.
Wet Seal Inc. (WTSLA) posted a 12.7% drop in comparable-store
sales when a 15.5% decline was projected. Wet Seal is in the midst
of a proxy battle with hedge-fund manager Clinton Group Inc., which
wants the company to sell itself. Fellow teen retailer Zumiez Inc.
(ZUMZ) reported a 5.6% rise in same-store sales when 3.1% was
expected, helped by higher prices.
September same-store sales at teen-apparel retailer Buckle Inc.
(BKE) fell 0.8% compared to the year-ago period, while an increase
of 1% was expected. Overall transaction values for September were
up about 3%, but the company's biggest category, women's, saw sales
fall. Casual bottoms, woven tops, active apparel, accessories and
footwear were strong performers. While men's total sales were up
2.5%, overall prices were down about 2%. Strong men's categories
included denim, knit shirts and accessories.
Write to Karen Talley at karen.talley@dowjones.com.
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