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News > Companies
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Chain store sales mixed
Early Easter cited for shifting sales from April to month earlier; discounters continue to do well.
May 9, 2002: 2:25 PM EDT

NEW YORK (CNN/Money) - Big retail chains reported mixed April sales Thursday, with many saying the early Easter hurt results by shifting holiday sales into March, taking some of the wind out of a normally robust April.

Discount chains generally performed better than traditional department stores and specialty chains, though several companies showed improvement last month, coming off a year in which a recession and uncertainty about jobs and terrorism dampened sales.

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Still, results were lackluster, given that April is normally a time when consumers are picking up bargains on spring closeout sales and buying summer clothing and merchandise. At least one analyst attributed the performance to mediocre fashions and the sluggish economic recovery.

"The fashions did not appeal. They were not sufficiently exciting to sweep consumers into the stores," said Kurt Barnard, president of Barnard's Retail Consulting Group. Barnard said he spoke to many retailers in the last few days who said inventories are lean, which "translates into a lack of confidence that there will be strong consumer demand in the second half."

The cautious atmosphere evidently affected sales at Wal-Mart Stores, Inc. (WMT: down $1.43 to $54.96, Research, Estimates), which posted a 3.3 percent gain in April sales at stores open at least a year, a key industry gauge known as same-store sales. That was only half the gain of the year-earlier month.

Bentonville, Ark-based Wal-Mart, the world's biggest retailer, said same-store sales rose 3.2 percent at Wal-Mart stores and 4.4 percent at Sam's Club warehouse stores.

Target Corp. (TGT: down $2.27 to $42.05, Research, Estimates) said same-store sales increased 0.4 percent from a year earlier, helped by results at its core Target discount stores. However, sales at its Mervyn's and Marshall Field's department store divisions and slower end-of-April sales at Target offset the numbers, the company said.

However, troubles continued for Gap Inc. (GPS: up $0.98 to $15.69, Research, Estimates), which posted a whopping 24 percent decline in same-store sales last month. The San Francisco-based chain, which has been struggling with a series of fashion misses and competition from discount chains, said sales at its domestic Gap stores fell 26 percent from a year earlier. Sales at its Banana Republic division fell 13 percent while Old Navy sales tumbled 27 percent. Gap International's same-store sales fell 21 percent.

Meanwhile, J.C. Penney (JCP: down $0.32 to $22.23, Research, Estimates) reported a 5.5 percent jump in its same-store department store sales last month, noting its 100th anniversary celebration helped offset a shift in the Easter holiday. But catalog sales fell 23.8 percent.

Elsewhere, Federated Department Stores Inc. (FD: Research, Estimates) said April same-store sales tumbled 5.9 percent, hurt by cooler weather. Shares of Federated, the parent of Macy's and Bloomingdale's, added 29 cents to $39.59 Wednesday.

Sears, Roebuck Inc. (S: down $0.20 to $52.65, Research, Estimates) reported a 2.8 percent drop in its same-store sales and Kohl's Corp. (KSS: down $1.12 to $70.54, Research, Estimates) reported a 5.3 percent increase in its April sales

B.J.'s Wholesale Club (BJ: up $1.38 to $45.15, Research, Estimates) reported a 4.2 percent jump in April same-store sales, driven mainly by higher food sales.

Upscale women's apparel chain AnnTaylor Stores (ANN: up $2.72 to $48.87, Research, Estimates) said same-store sales fell 2.7 percent, but noted that sales have been strong with little discounting in the latest quarter. That prompted AnnTaylor to forecast quarterly earnings of about 67 cents a share, above Wall Street forecasts of about 61 cents, according to First Call, which tracks analysts' forecasts.

May Department Stores Co. (MAY: up $0.49 to $35.72, Research, Estimates) said same-store sales increased 3.9 percent in the period, helped by the shift of a major sales promotion from the last week of March to the first week of April. The parent of Lord & Taylor, Filene's, Hecht's and David's Bridal said total sales increased 7.3 percent.

Saks Inc. (SKS: up $0.01 to $14.78, Research, Estimates) said same-store sales company-wide same-store sales increased 0.9 percent last month.

Family Dollar Stores Inc. (FDO: down $0.14 to $34.98, Research, Estimates) reported a 1 percent increase in same-store sales. The discount chain said non-apparel sales grew 3.5 percent, but that apparel and other so-called "softline" merchandise fell 5.7 percent in the period.

Discount chain operator TJX Companies Inc. (TJX: down $0.23 to $21.73, Research, Estimates) said same-store sales increased 7 percent in the period. The company, which operates Marshalls, T.J. Maxx, HomeGoods and A.J. Wright stores, is set to report first-quarter earnings Tuesday.

Specialty retailers, which also have been squeezed by discount chains in the sluggish economic climate, also turned in a mixed performance.

Youth-oriented chain Pacific Sunwear of California Inc. (PSUN: down $2.84 to $20.89, Research, Estimates) said same-store sales declined 6.7 percent last month even though total sales increased 9.1 percent. CEO Greg Weaver blamed the Easter shift, and said the company expects a first-quarter profit of 10 cents a share. Analysts polled by First Call expect the company to post a profit of 13 cents a share.

Limited Inc. (LTD: up $0.11 to $20.16, Research, Estimates), which operates Limited, Victoria's Secret, Bath & Body Works, Express, Structure and other stores, reported same-store flat with the year earlier period.

Accessory retailer Claire's Stores Inc. (CLE: unchanged at $21.15, Research, Estimates) reported a 7 percent same-store sales decline; Urban Outfitters Inc. (URBN: up $0.83 to $30.33, Research, Estimates) posted an 18 percent jump in sales; Men's Warehouse (MW: down $0.14 to $24.34, Research, Estimates) U.S. same-store sales fell 6.4 percent; Pier 1 Imports Inc. (PIR: up $0.86 to $23.21, Research, Estimates) increased 9 percent; Shoe Carnival's (SCVL: down $1.23 to $19.55, Research, Estimates) sales fell 11.3 percent; and Bebe Stores (BEBE: up $1.17 to $21.52, Research, Estimates) declined 12.4 percent.  Top of page






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