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Retail sales still chilly in June
Wal-Mart's same store sales edge higher, Pier 1 sinks despite efforts to shed its wicker image.
By Jessica Seid, CNNMoney.com staff writer

NEW YORK (CNNMoney.com) -- Retail chain stores delivered sluggish sales numbers last month, as high gas prices and cool weather took a toll on consumer spending.

"The summer months are very difficult to use as a barometer for anything," said Richard Hastings, senior retail analyst at Bernard Sands.

retail_sales_june06.gif

And as for what's ahead, "people are still traveling; we'll have to wait for the second half of July, which is the build up to back to school shopping."

Wal-Mart's (Charts) sales at its stores open at least a year - a key retail measure known as same-store sales - rose just 1.2 percent in June, the company reported Thursday.

The world's largest retailer said total sales for the five weeks ended June 30 rose 10.4 percent to $33.12 billion from $29.99 billion a year earlier.

In a statement, Wal-Mart's chief financial officer Tom Schoewe said customers were consolidating their trips due to increasing concerns about high gas prices, but maintained the profit forecast for the current quarter despite disappointing sales growth.

"Based on the results of the first two months, we estimate that the earnings per share for the second quarter of fiscal 2007 will be within our previously stated guidance of $0.70 to $0.74," Schoewe said.

Among other results reported early Thursday, wholesale club operator Costco (Charts) posted a 6 percent sales increase, boosted by food and gasoline sales, but fell short of Wall Street's sales targets.

Limited Brands (Charts), the owner of the Victoria's Secret and Bath & Body Works chains, logged a 3 percent gain in its sales, but also came in below analysts' forecasts, and Federated Department Stores (Charts), the parent of Macy's and Bloomingdale's, reported a 1.7 percent rise in sales at stores open at least a year, missing forecasts.

Women's apparel chain Chico's (Charts) posted a 5.1 percent jump in sales last month, slightly below Wall Street expectations.

Target (Charts) said June same-store sales rose 4.8 percent, near the high end of its forecast for 3 percent to 5 percent growth.

Meanwhile, J.C. Penney's (Charts) June sales rose 4.3 percent, surpassing expectations.

And teen clothing retailer American Eagle Outfitters (Charts) posted an 11 percent jump in its sales at stores open at least a year, well above forecasts.

However, beleaguered home furnishings chain Pier 1 Imports (Charts) fell for the fifth straight month, posting an 18.4 percent decline in sales last month.

Other laggards included apparel seller Gap (Charts), which posted a 6 percent sales decline and teen clothier Hot Topic (Charts) which logged a 3.4 percent drop in sales last month.

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Related: To keep wages rising, American workers need to get creativeTop of page

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