Retailers’ initial sales figures down in January
Retailers are reporting a decline in sales in January, but some are beating expectations, MSNBC reported.
According to a Thomson Reuters retail sales tally, seven retailers beat expectations, while five fell short of projections. The tally is based on same-store sales, or sales at stores opened at least a year.
The bright spot was Wal-Mart Stores Inc., which reported a 2.1 percent increase in same-store sales excluding fuel, which was better than the 1.1 percent gain analysts had projected. The company said sales were strong in the grocery and health and wellness categories.
Meanwhile, Stage Stores Inc. reported a 13.1 percent decline in same-store sales, more than the 8.3 percent analysts had predicted; Children’s Place Retail Stores Inc. had an 11 percent decline, worse than the 2 percent drop analysts projected; and Limited Brands Inc. posted a 9 percent decline, better than the 15.9 percent drop analysts had expected.
Costco Wholesale Corp. reported a 2 percent drop in same-store sales, slightly better than the 2.8 percent decline analysts had expected. However, the discount retailer said that profits for the quarter ending in February will “substantially” miss Wall Street projections due to poor sales and margins.
Though January tends to be the least important month for retailers, the results are a sign that consumer spending continues to deteriorate. The industry has reported declines since October.