Retailers: Difficult Selling Conditions, Unseasonable Weather and An Early Easter
It is retail sales reporting day, and here is what our Watch List names are saying.
Mid Cap Watch List (Track at Marketocracy) and Large Cap Watch List (Track at Marketocracy) member Abercrombie and Fitch (ANF):
April comparable store sales decreased 15% for the four-week period ended May 5, 2007, compared to the
four-week period ended May 6, 2006. Total Company direct-to-consumer net sales increased 48% to $13.6 million for the four-week period ended May 5, 2007, compared to the four-week period ended April 29, 2006.The Company expects to report net income per diluted share of $0.64 to $0.65 for the first quarter of fiscal 2007. Despite difficult selling conditions, the Company expects to achieve its projected growth primarily through prudent expense management.
Analysts were expecting $0.66. And to think, last month they seemed immune.
Small Cap Watch List (Track at Marketocracy) member Aeropostale (ARO):
Aeropostale, Inc. (NYSE: ARO), a mall-based specialty retailer of casual and active apparel for young women and men, today announced that total net sales for the four-week period ended May 5, 2007 decreased 9.8% to $75.4 million, from $83.6 million for the four-week period ended April 29, 2006. Same store sales for the month decreased 14.0%, compared to the corresponding four-week period ended May 6, 2006.
Julian R. Geiger, Chairman and Chief Executive Officer said, “While our results for the month reflect the negative effect from the shift in Easter, we remain very pleased with our performance for the first quarter, particularly the combined March and April period in which we generated a 2.6% comparable store sales increase. During the month we continued to control both the depth of our promotions and level of our inventory. Accordingly, we were able to maintain the positive trend in our gross margins and we are on track to end the quarter with earnings above our previously issued guidance. We also remain well positioned for a smooth transition into the summer selling season.”
Based on the positive trend in gross margins for the month, the company updated guidance for the first quarter of fiscal 2007. The company now expects net earnings in the range of $0.24-$0.25 per diluted share, versus its previously issued guidance of $0.22-$0.23 per diluted share.
Analysts were expecting $0.23.
Large Cap Watch List (Track at Marketocracy) member TJX Companies (TJX):
Sales for the four-week period ended May 5, 2007, were $1.28 billion, up 2% over the $1.26 billion achieved during the four-week period ended May 6, 2006. For the thirteen weeks ended May 5, 2007, sales reached $4.2 billion, a 7% increase over last year’s $3.9 billion. Consolidated comparable store sales for the four-week period ended May 5, 2007, decreased 1% versus last year.
Carol Meyrowitz, President and Chief Executive Officer of The TJX Companies, Inc., stated, “Comparable store sales results in April were below our expectations, which we attribute to the unseasonably cold and wet weather across most regions of the country during the first half of the month. That said, when the weather warmed up during the second half of the month, customer demand for spring apparel accelerated significantly and comparable store sales ran ahead of our plan. Furthermore, despite April’s unseasonable weather, comparable store sales for the combined March/April period, which includes the Easter holiday, were up 3%, which was in line with our plans.”
All in all a mixed bag, with lots of things on which to blame any missteps.
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[…] The same store sales figure represents a slowdown from the 2.9% March-April average (both of which months were affected by the early Easter) and the 2.4% year-to-date figure. Granted, a single mall-based teen retailer does not necessarily represent what is happening in the broader economy. But if the coming same-store sales numbers at other retailers follow suit, it has bad implications for the last remaining leg holding up the GDP stool. For more information, see all articles on: Stock Market, ARO This article is for entertainment purposes only and reflects the author’s opinion. It is not a solicitation or advice to buy or sell any securities mentioned. Always consult a qualified advisor before making investment decisions. […]
[…] to the corresponding period ended June 3, 2006. In May same store sales were up 1.9%, and the average for March and April (both of which were skewed by the early Easter) was […]