For a country whose GDP is 72% based upon consumer spending, it sure looks dire. The MSM will continue to downplay the FACT that the average middle class American has run out of money. The retail sales results for June were BAD. Costco, Target, Kohls, and Macy’s operate tens of thousands of stores and anchor malls and power centers across the land. Their sales were horrific. Please note that these comparable store sales numbers INCLUDE online sales and INCLUDE the impact of inflation. In reality, the number of people going into these stores was negative across the board in June. You won’t see that reported in the flowery press releases with excuses about storms and whatever other lame excuse these CEOs can think up. I thought the plunge in gasoline prices was going to rejuvenate the consumer. It looks like another false MSM storyline.
Luckily the 1% are still doing fine, as Nordstrom and Saks had great months. Thank God for the rich Wall Street pricks. What would we do without them?
This is just another confirmation that the country went into recession during May/June. Now with surging food prices baked into the proverbial cake over the next 6 months, retail sales should really pick up.
Retailers Post Disappointing Sales in June
Retailers reported largely disappointing sales in June, as consumers pulled back on spending amid concerns about jobs and the economy.
Thomson Reuters was expecting its same-store sales index to inch up 0.5 percent in June, far weaker than a year-ago when the index rose 6.7 percent in June.
June tends to be a weaker month on the retail calendar with fewer reasons to drive shoppers to the store.
Department store Macy’s [M 33.36 (---) ] was among the retailers reporting sales that fell short of estimates. The company said same-store sales rose 1.2 percent in June, compared with an estimate of 1.9 percent from Thomson Reuters. In the wake of the weak results, the company said it expects its fiscal 2012 earnings to be between $3.25 and $3.30 a share, which is below the $3.37 a share average analyst estimate.
Discounter Target [TGT 57.78 (---) ] also reported weaker-than-expected same-store sales growth, but it reiterated its earnings forecast for its fiscal second quarter. Still, Target shares were trading lower before the market’s open.
There were some pockets of strength. High-end retailers Nordstrom [JWN 50.56 (---) ] and Saks [SKS 10.92 (---) ] both topped analysts’ estimates as did off-price retailers TJX [TJX 42.50 (---) ] and Ross Stores [ROST 62.78 (---) ] .
Limited Brands [LTD 44.14 (---) ] , the parent of Victoria’s Secret and Bath and Body Works, also smashed its final estimates. The retailer reported an increase of 7.0 percent in sales at stores open at least 12 months. Analysts surveyed by Thomson Reuters were expecting, on average, a gain of 2.4 percent.
Among the worst results were teen apparel retailers Wet Seal [WTSLA 3.16 --- UNCH (0) ] and The Buckle [BKE 39.67 (---) ] . Sales declined 9 percent at West Seal, far deeper than the projected 7.7 percent decline that was expected.
At the Buckle, sales fell 2.5 percent, compared with estimates that called for flat sales.
A table of the results follows:
Same-Store Sales, June 2012
|Retailers||June 2012 Estimates||June 2012 Actuals|
|Saks Department Store||4.7%||6.0%|
Source: Thomson Reuters, company reports. Figures in parenthesis are losses.
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