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Retailers post mixed sales
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October 5, 2000: 3:11 p.m. ET
Federated, Sears September sales up; J.C. Penney, Guess? see decrease
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NEW YORK (CNNfn) - Most U.S. retailers Thursday reported sales growth in September, reversing downward trends that began last spring as higher interest rates and even higher oil prices checked consumer spending.
Federated Department Stores -- the owner of Macy's, Bloomingdale's and Stern's department stores -- said sales rose 2.9 percent at stores open at least a year, known as same-store sales. Sears, the nation's No. 2 retailer, said same-store sales rose 3 percent.
J.C. Penney, the No. 5 retailer, reported a 4 percent drop in sales. The chain was one of the few to report a decrease, chiefly because of trouble at its Eckerd Drug Stores and competition from Kohl's, which saw sales jump nearly 10 percent.
Specialty retailers also fared well in the month.
Although sales were up, analysts remained cautious about the upcoming holiday season as oil prices continue to trade near 10-year highs, and as consumers, whose closets are full of all the blue shirts and khaki pants they want for now, save to pay for home heating oil and gasoline.
Dana Cohen, an analyst with Donaldson Lufkin & Jenrette, told CNNfn's "Before Hours" program Thursday that consumer spending remains "lackluster," and that she expects modest gains in the holiday season. [WAV 613KB] [AIFF 613KB].
"I think you'll see growth in holiday spending, but I think it'll be tempered," Cohen said. "I don't think there's any reason to think that the consumers all of a sudden are going to change direction and do a market pickup. From what we're seeing, there's still a lot of money being spent out there. It's just the gains are more modest than they were say nine months ago."
Guess? same-store sales drop
Guess?, which manufactures and sells fashion apparel, said Thursday sales at stores open at least a year fell 3.1 percent in September, compared with a 28.7 percent increase in the year-ago period.
 Total sales in the month ended Sept. 30 rose 25.6 percent to $29.3 million, compared with $23.3 million a year ago. Shares of Guess? (GES: Research, Estimates) moved up 6 cents at midday to $10.06 Thursday on the New York Stock Exchange.
Total sales for the third quarter increased to $103.4 million from $77.6 million in the same quarter last year. Same-store sales for the quarter rose 4.8 percent compared with a 21.3 percent increase a year ago.
In late September, Guess? warned that profits for the third quarter would fall short of analysts' estimates. The Los Angeles-based company said earnings would be between 35 cents and 38 cents per share.
Wall Street analysts are now expecting the company to post a profit of 36 cents a share, according to research firm First Call/Thomson Financial.
Penney's sales prompt profit warning
J.C. Penney reported a 4 percent drop in September same-store sales for its department stores, reflecting more promotional activity than expected. Total sales, including new stores, fell 4.8 percent to $1.21 billion.
 That, combined with a weaker retail environment and disappointing sales at its troubled Eckerd Drug Store division, prompted the Plano, Texas-based company to warn that it will miss Wall Street forecasts of 10 cents-a-share profit for the third quarter.
J.C. Penney (JCP: Research, Estimates) stock fell $1.19 to $10.12 Thursday.
Federated sees increase
Cincinnati-based Federated said total sales for the five weeks ended Sept. 30 rose 2.2 percent.
 The sales figures follow on the heels of Gap Inc.'s (GPS: Research, Estimates) late Wednesday announcement that its September same-store sales fell 8 percent because of ongoing inventory troubles at its Old Navy division and increased markdowns.
Gap shares gained $1.88 to $21.75 Thursday. Federated shares gained $1.12 to $27.81.
Sears cites specialty shops
Hoffman Estates, Ill.-based Sears said same-store sales for September rose 3 percent while total store sales gained 4.2 percent to $2.53 billion.
 Sears' (S: Research, Estimates) new CEO Alan Lacy attributed the increase to strong sales of home appliances, sporting goods, fine jewelry and footwear, as well as gains at its auto centers.
Sears stock added $1.35 to $34.55 Thursday.
Kmart rises, but misses own expectations
Troy, Mich.-based Kmart Corp. (KM: Research, Estimates), in the midst of an overhaul under new CEO Chuck Conaway, saw same-store sales increase 2.4 percent. Yet that's well below plan because of promotional and clearance sales.
 "We continue to focus on inventory levels and inventory mix while dramatically raising the level of store execution," Conaway said.
Net sales for September increased to $3.1 billion from $2.9 billion, a 4 percent increase over the year-earlier period.
Shares of Kmart were up 6 cents to $6 Thursday.
May, Kohl's post increases
May Department Stores Co. reported a less than 1 percent increase in same-store sales for September, excluding sales at David's Bridal, which it acquired earlier this year.
For the five weeks, May (MAY: Research, Estimates) reported net sales of $1.30 billion, a 6 percent increase from the $1.23 billion it posted a year ago.
Shares of May rose 63 cents to $27.37 in early trading Thursday.
Kohl's Corp. (KSS: Research, Estimates) reported a 9.8 percent same-store sales increase for the month. Total sales increased 33.7 percent from the year-earlier period.
Shares of Kohl's jumped $4.87 to $61.56 Thursday.
Limited Inc. (LTD: Research, Estimates) said same-store sales rose 10 percent in September, while Talbot's reported a whopping 24.8 percent increase for the month.
And Nordstrom (JWN: Research, Estimates), which has seen only modest sales increases recently, said same-store sales increased 4.3 percent. 
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