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Retailers warn
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October 11, 2001: 12:05 p.m. ET
Several chains cite Sept. 11 attacks for lower sales, missed 3Q results
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NEW YORK (CNNmoney) - Several retailers warned Thursday they would miss Wall Street's third-quarter earnings forecasts, citing decreased sales in the wake of the Sept. 11 terrorist attacks on the World Trade Center and the Pentagon.
Apparel retailer Gap Inc. (GPS: up $0.11 to $13.69, Research, Estimates), already struggling with declining sales, said it now anticipates a loss for the third quarter as a result of sales that were below plan. Analysts surveyed by earnings tracker First Call had been expecting positive earnings of 6 cents a share, compared with 21 cents a year earlier.
For September, the company, which operates Gap, Old Navy and Banana Republic stores, reported a 17 percent drop in sales at stores open at least a year, a key figure known as same-store sales. Chief Financial Officer Heidi Kunz said the sales decline is likely to continue.
"At present we do not see an improvement in comparable-store sales in October from the negative 17 percent experienced to date," Kunz said. "In addition, margins remain under considerable pressure as we continue to mark down remaining fall product in preparation for the holiday season."
Another warning came from May Department Stores (MAY: up $2.01 to $32.86, Research, Estimates), operator of the Lord & Taylor and Hecht's chains, among others. May, which posted a 10.9 percent decline in same-store sales for September, said it would miss analysts' third quarter estimates, and did not provide a specific figure. The Street had been expecting May to earn 23 cents a share, compared with 27 cents a share a year earlier.
Women's apparel chain AnnTaylor Stores Inc. (ANN: up $1.41 to $26.00, Research, Estimates) said third-quarter earnings would be sharply lower than Wall Street expectations with earnings per share between 42 cents and 46 cents a share, compared with 78 cents a share a year earlier. Analysts polled by First Call were expecting earnings of 69 cents a share for the third quarter.
The New York-based chain also reported a 13.9 percent decline in September same-store sales Thursday.
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Target Corp. (TGT: up $0.69 to $33.00, Research, Estimates) reiterated third-quarter guidance, but noted results could fall at the lower end of analysts' expectations. The Minneapolis-based chain anticipates third-quarter earnings of 24 to 25 cents a share. Analysts polled by First Call expect earnings of 25 cents a share. The company actually posted a 0.2 increase in same-store sales for September thanks to sales at its discount Target stores. However, lower sales at its Marshall Field's and Mervyn's department stores kept that figure from moving higher.
Federated Department Stores (FD: up $1.97 to $31.45, Research, Estimates), operator of the Macy's and Bloomingdale's chains, did not issue a warning but said it estimates October same-store sales will decline 7 to 10 percent below year-ago levels, and that the impact of lower-than-expected sales on the third and fourth quarters still is being evaluated.
The company, which posted a 12.9 percent decline in September same-store sales, said revised earnings guidance will be issued once it has finished assessing the sales impact. 
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