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Specialty retailers guide
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September 6, 2001: 9:25 a.m. ET
Best Buy says it will beat expectations, while Spiegel, Gap sales suffer
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NEW YORK (CNNfn) - Specialty retailers, struggling to recover from a year-long economic slowdown that's hurt sales, gave mixed guidance for future profits Thursday, with electronics retailer Best Buy looking in the best shape.
Minneapolis-based Best Buy Co. Inc. said sales in its stores open for a year or more rose 2.8 percent during the company's fiscal second quarter, which ended on Sept. 1.
The No. 1 U.S. electronics retailer also said it expected earnings per share for the quarter of at least 38 cents. Analysts surveyed by earnings tracker First Call expected earnings of 30 cents a share.
"The stronger-than-expected sales performance, combined with a reasonable promotional environment and diligent expense control, resulted in this positive earnings news," said Darren Jackson, Best Buy's senior vice president and chief financial officer.
The news was much worse for Spiegel Inc., which operates the Spiegel Catalog and Eddie Bauer clothing stores. The group said its total sales in August fell 9 percent to $188.7 million from $208.2 million a year ago, and sales at Eddie Bauer stores open for a year or more fell 11 percent.
Spiegel said it was difficult to predict its earnings, but it expected to lose between 5 and 10 cents a share in its fiscal third quarter, which will end on Sept. 29. Wall Street expected Spiegel to earn 8 cents a share in the quarter, according to First Call.
Downers Grove, Ill.-based Spiegel also said it expected to earn between 50 and 60 cents a share in its fiscal fourth quarter, compared to analyst expectations of 80 cents a share.
Click here for more on August sales
And struggling clothing retailer Gap Inc. said its comparable-store sales fell 17 percent in August from a year ago and warned its third-quarter sales will suffer.
"August results fell well below our expectations," said Gap CFO Heidi Kunz. "Given these results, coupled with the current economic environment, it's unlikely we will achieve our prior comparable store sales guidance of a mid-single digit decline for third quarter. Beyond that, it's difficult to provide specific guidance at this time."
Gap warned on Aug. 16 that its third-quarter earnings would miss Wall Street's expectations of 11 cents a share.
Best Buy (BBY: Research, Estimates) shares closed Thursday down 31 cents at $58.72. Spiegel (SPGLA: Research, Estimates) shares closed up 2 cents at $9.81. Gap (GPS: Research, Estimates) shares closed down 68 cents at $19. 
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Best Buy
Spiegel
Gap
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