DOW JONES NEWSWIRES
Retailers posted another month of falling same-store sales as May's figures came in below analysts' dour expectations, with results hurt by last year's federal stimulus checks goosing those sales and the continuing spending malaise among consumers.
But some analysts had hoped results would show some gains from the warmer-than-normal May weather across much of the U.S.
Among the worst performers was Children's Place Retail Stores Inc. (PLCE), which posted a 9% drop. Analysts surveyed by Thomson Reuters, on average, anticipated flat results. The retailer's shares fell 7.2% premarket to $32.
Conversely, lower-price department-store operator Kohl's Corp. (KSS) reported a scant 0.4% same-store-sales decline, much smaller than was expected. Accessories were cited as the biggest factor. Its shares were flat.
The industry's results were also the first without Wal-Mart Stores Inc. (WMT) in 30 years. The world's largest retailer said last month it would stop giving month sales data, following the lead of other smaller peers in recent years. But Macy's Inc. (M) last fall began giving such data again, saying the economic turmoil warranted its investors getting a more-often read on the company's performance.
Department stores, for more than a year the laggard among the various retail segments, largely held to form as Macy's had a 9.1% same-store-sales drop while J.C. Penney Co. (JCP) reported an 8.2% decline. Luxury retailer Saks Inc. (SKS) posted a 27% plunge, nearly double the projected drop.
Discounters, which have largely been holding up amid the recession, reported largely lower results as well. Costco Wholesale Corp. (COST) had a 7% drop on sharply lower gasoline prices and the stronger dollar. But even excluding gas, U.S. same-store sales dropped 1% with weakness in more-discretionary categories. That was partially due to the average TV sale price slumping 39%, though most of that was made up by a 48% increase in unit volume.
However, smaller rival BJ's Wholesale Club Inc. (BJ) continued its recent outperformance, reporting 4% same-store-sales growth excluding gasoline. Target Corp. (TGT), though, maintained its woes with a worse-than-expected 6.1% decline and a similar drop is seen for June.
On the apparel side, closeout-chain operators TJX Cos. (TJX) and Ross Stores Inc. (ROST) reported gains of 5% and 4%, respectively as consumers gravitate to lower-priced wares. Others reported weaker results.
Abercrombie & Fitch (ANF) reported another month of dour results, posting a 28% same-store-sales drop, compared with analysts' expectations of a 24% decline. The company hasn't reported growth since April 2008 and is increasingly shedding its no-markdown mantra. But cheaper rival Aeropostale Inc. (ARO) maintained its recent gains, smashing expectations with a 19% jump for May.
And Buckle Inc. (BKE) continued its streak, generating its 22nd-straight month of double-digit growth. The 13% increase comes on top of last year's 34% surge at the teen- and 20s-focused purveyor of trendy tops and edgy jeans and footwear.
-By Kevin Kingsbury, Dow Jones Newswires; 201-938-2136; kevin.kingsbury@dowjones.com