April sales meet estimates
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May 8, 1997: 12:03 p.m. ET
Major chain stores report mixed results for the latest month
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NEW YORK (CNNfn) -- The nation's largest retailers reported generally mixed sales at the beginning of the second quarter.
The April sales, reported from stores opened during the comparable period a year earlier, were generally in line with expectations; however, analysts said there were notable exceptions.
Wal-Mart Stores Inc. (WMT), the nation's largest retailer, said April same-store sales rose 6.1% to $8.1 billion. However, Kmart Corp. (KM) said sales for the four weeks ended April 30 eased 0.8% to $2.2 billion. Kmart, the nation's no. 2 retailer, said the results came in at the low end of expectations. Sears, Roebuck & Co. (S) said same-store sales rose 3.4%.
"Sales results were not exactly exceptional and they do represent a slowdown in the overall economy," said Kurt Barnard, president of Barnard's Retail Market Report, a trade group.
Barnard explained that, so long as consumer debt levels remain high, consumer will continue to refrain from excessive spending. "By and large, we're seeing a public that is up to his eyeballs in debt," he said.
Still, some money managers like Ross Margolies of Salomon Brothers Asset Management said the sales results appear better given many analysts lowered expectations a few weeks ago.
"The consumer is making a lot of money, employment is high, wages are starting to go up. People have money in their pockets," Margolies said.
As for the other large retail chains, Federated Department Stores Inc. (FD), parent company of Bloomingdales and Macy's, said April sales rose 6.2%. However, during the comparable March-April period, sales rose 2.6% -- in line with expectations.
Dayton Hudson Corp. (DH) said April same-store sales rose 2.9%. Still, sales at its Target discount store chain jumped 6.7% in April, further evidence of the consumer shift toward low-cost, value-oriented spending.
Consumers "are trying to extinguish their debt and put a little away for savings," Barnard said.
-- Robert Liu
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Wal - Mart Stores
Kmart
Sears, Roebuck
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