Department store results mixed in May
New York — When Macy’s reported a 4.2% May same-store sales gain on Wednesday, ahead of the rest of the pack, analysts wondered whether that would set the tone for the rest of the department store players. It did — and it didn’t.
Macy’s outpaced the 4% gain predicted by Wall Street, citing online strength as a major reason for the strong performance, but Kohl’s saw a wider than expected drop in same-store sales. The department store retailer posted a 4.2% decrease in May, worse than analysts’ predicted 1.2% drop. According to CEO Kevin Mansell, the May results will likely set the tone for the upcoming quarter.
“May sales were lower than our expectations and, as a result, we now expect second quarter comparable store sales to be modestly negative,” he said. “We made some progress in building our inventory levels, but continue to expect lower units to hinder our sales until the Back-to-School season.”
Among other department store results:
Nordstrom reported a 5.3% increase in May same-store sales, beating the forecasted 4.7% rise;
Saks also beat Wall Street estimates, recording a 4% May increase despite the 2.5% projected rise;
Bon-Ton same-store sales rose 1.5% in May.
Neither J.C. Penney nor Sears Holdings report monthly sales.
Target beats, Costco disappoints in the discount sector
New York — Target and TJX Cos. both reported better-than-expected results in May, with a 4.4% and an 8% increase in same-store sales, respectively. Wall Street expected Target same-store sales to be up 3.5% in May and forecasted TJX sales to rise 5.3%.
TJX’s strong performance in May even prompted the company to raise its forecast to the high end of its previous earnings estimate. And Target saw strength from such categories as food, clothing and health supplies, which helped push results to high end of the retailer’s expected range. “We’re confident that Target is well-positioned to continue delivering a superior guest experience and strong financial performance for many years to come,” said Target CEO Gregg Steinhafel. Total sales for the four weeks ended May 26 rose 5% to $5.04 billion.
But not all chains outdid expectations. Costco Wholesale reported a same-store sales rise of 4%, missing the 4.3% that analysts forecasted. According to the company, results were negatively impacted by deflation in gasoline prices and foreign currencies.
Among other discounters’ results in May:
- Ross was up 8%;
- SteinMart was up 3%;
- Cato May same-store sales rose 3%;
- Stage was up 8%; and
- Fred’s edged up 1.3%.
Sam’s Club to host men’s health screenings
BENTONVILLE, Ark. — Sam’s Club is marking Men’s Health Month in June by offering free men’s health screenings at its pharmacies.
From 11 a.m. to 3 p.m. on June 9, the first 75 participants at each club location with a pharmacy will receive a prostate-specific antigen test to screen for accelerated PSA protein levels in the blood, which is a symptom of benign prostate enlargement and/or prostate cancer, Sam’s Club said. Additional free screenings include body mass index and blood-pressure test (limited to the first 50 participants at each location), with the total offering valued at up to $150. Sam’s Club said the May/June issue of its exclusive bimonthly wellness magazine, Healthy Living Made Simple, also highlights basic lifestyle choices to help manage men’s health.
Later this summer, Sam’s Club said it is supporting communities with free health screenings focused on healthy aging on July 14.
"Sam’s Club has provided more than one million free screenings since March 2011, and we continue to explore ways for our communities to manage their health needs with the convenience and value our members deserve," Sam’s Club SVP health and wellness Jill Turner-Mitchael said.