News

Target misses in December; Costco and TJX shine

BY Katherine Boccaccio

New York — Target Corp. turned in a less than stellar performance in December, recording flat same-store sales. But Costco Wholesale Corp. and TJX shone, exemplifying an up-and-down season in which consumers backed off buying amid concerns about a “fiscal cliff” and the uncertain economic climate.

Target missed Wall Street’s expectations of a modest 0.8% rise in same-store sales. Still, the discount giant said that its fourth quarter earnings should meet or slightly exceed the low end of its forecast. A key aspect of Target’s weakness in December appeared to be weak sell-through of the highly-anticipated Target/Neiman Marcus Holiday Collection. The unique assortment of exclusive and pricy merchandise did not appear to resonate with customers, judging from 50% and even 70% markdowns at some locations.

Sales at Target for the five week period ended Dec. 31, increased 0.8% to $10.2 billion while same store sales were essentially flat, below the company’s guidance which called for an increase in the low single digits. The performance was driven by a low single digit decrease in comparable store transactions, offset by an increase in average transaction size.

“December sales were slightly below our expectations, as strong results late in the month did not completely offset softness in the first three weeks," said Gregg Steinhafel, chairman, president and CEO. "Similar to November, profitability for December benefited from our continued focus on achieving an appropriate balance between price investments and driving sales, combined with thoughtful inventory management. As a result, we expect Target’s fourth quarter 2012 earnings per share will meet or somewhat exceed the low end of our prior guidance."

Target said the strongest category during the month was food, with health and beauty and clothing also doing well.

Costco topped Wall Street expectations with a 9% rise in December same-store sales, beating estimates for a 6.5% increase. Excluding fuel sales and the effects of foreign exchange, the club posted an 8% rise.

The TJX Cos. saw same-store sales increase 6% in December, after an 8% increase last year, “significantly” exceeding the company’s expectations, according to CEO Carol Meyrowitz.

“I am delighted to see that once again, consumers responded extremely well to our exciting selection of branded, giftable merchandise at excellent values, leading to our December comp sales increase of 6%,” she said in a statement. “This comp increase significantly exceeded our expectations and was achieved over an 8% increase last year.”

Family Dollar Stores’ same-store sales rose about 2.5% in December after increasing 6.6% in the preceding quarter.

"The holiday selling season proved to be more challenging than we expected as customers faced increasing financial uncertainty," said CEO Howard Levine. He said customers are focusing “even more on basic needs.”

Among other discount chains:

• Ross rose 6% in December, and lifted its fourth quarter profit view;
• Stein Mart same-store sales grew 5.9%;
• Alco Stores rose 1.1% excluding fuel; and
• Fred’s dropped 4.2%.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

Polls

Are you hiring seasonal employees this year?

View Results

Loading ... Loading ...
News

Gap acquires Intermix for $130 million

BY Katherine Boccaccio

San Francisco — In a development that will take it into the growing global luxury market, Gap Inc. announced Thursday it has acquired women’s apparel retailer Intermix Holdco for approximately $130 million in cash. The transaction was completed Dec. 31.

Intermix, which operates 32 stores and an e-commerce site, offers a mix of luxury brands including merchandise from up-and-coming designers. The featured brands range from Rag & Bone and Stella McCartney to Proenza Schouler and Helmut Lang. Gap said it sees opportunity to expand the chain and lift the website’s visibility.

“Intermix has a distinctive position in this growing market with clear competitive advantage,” said Glenn Murphy, chairman and CEO of Gap Inc. “Their record of merchandising with a keen eye towards mixing multiple designer labels, complemented with exclusive product, is appealing to their loyal customers.”

According to Gap, Intermix’s senior team, including co-founder and CEO Khajak Keledjian and president Adrienne Lazarus, will continue to operate the business from New York, with Keledjian as chief creative officer. They will report to Art Peck, president of Gap Inc.’s Growth, Innovation & Digital division.

keyboard_arrow_downCOMMENTS

Leave a Reply

A.John says:
May-16-2013 05:14 am

chat roulettehas always been a popular casinos; professional players consider this game as it offers a more realistic experiencecasino

A.John says:
May-16-2013 05:14 am

chat roulettehas always been a popular casinos; professional players consider this game as it offers a more realistic experiencecasino

A.Terri says:
May-13-2013 09:56 am

Nice impression is seen within this blog and also the nice technologies are visible within this blog. I'm greatly satisfied through the info within this blog. This data is extremely interesting for supplying within this website. | http://goo.gl/Kp43R | http://goo.gl/6tjUi | http://goo.gl/J2ERn | http://goo.gl/5ksqV |

A.Terri says:
May-13-2013 09:56 am

Nice impression is seen within this blog and also the nice technologies are visible within this blog. I'm greatly satisfied through the info within this blog. This data is extremely interesting for supplying within this website. | http://goo.gl/Kp43R | http://goo.gl/6tjUi | http://goo.gl/J2ERn | http://goo.gl/5ksqV |

J.Lavoro says:
Apr-09-2013 04:02 pm

This is really satisfied by the great info is visible in this blog that to very much information in this blog. Thanks a lot for providing the great info is visible in this blog and using the great technology in this blog. ads dating

J.Lavoro says:
Apr-09-2013 04:02 pm

This is really satisfied by the great info is visible in this blog that to very much information in this blog. Thanks a lot for providing the great info is visible in this blog and using the great technology in this blog. ads dating

M.Donovan says:
Mar-27-2013 10:07 am

I know what you mean because I need gas for my noleggio barche business. It is not cheap!

M.Donovan says:
Mar-27-2013 10:07 am

I know what you mean because I need gas for my noleggio barche business. It is not cheap!

TRENDING STORIES

Polls

Are you hiring seasonal employees this year?

View Results

Loading ... Loading ...
News

Macy’s and Nordstrom top estimates in December; Kohl’s misses

BY Katherine Boccaccio

New York — As cash-strapped consumers curtailed holiday spending, department store retailers felt the pinch and some performed better than others in an uncertain environment. The strongest performances were turned in by Macy’s and Nordstrom, both topping estimates.

Overall, analysts looked for 3.3% same-store sales growth for December across 17 chains, down from 4.2% growth in December 2011, according to Thomson Reuters.

Macy’s reported a rise in December same-store sales of 4.1%, edging Wall Street’s expected 4% rise, and a total monthly sales gain of 3.6% to $5.102 billion. But the department store heavy-hitter cuts its guidance for the fourth quarter and detailed a series of “normal-course adjustments” to its store portfolio that include closing six underperforming stores. The chain will open nine other Macy’s and Bloomingdale’s around the country to rebuild its total store count.

CEO Terry Lundgren said the rate of comp growth was less than the retailer expected, but that was due partly to uncertain economic news and the lingering effects of Superstorm Sandy.

“Last month was our fourth consecutive December with same-store sales growth, which is indicative of the sustainability of our key business strategies,” said Lundgren. “While the rate of growth was somewhat less than we had expected in the first two months of the fourth quarter, it came amid some significant headwinds from uncertain economic news and the lingering effects of Hurricane Sandy.”

Kohl’s Corp. saw same-store sales rise 3.4% in December, along with a total sales increase of 4%, falling below company expectations. “December sales were lower than planned,” said CEO Kevin Mansell. “Additionally, sales came late in the holiday shopping season and, as a result, were at deeper discounts than planned. We are taking the necessary markdowns in the fourth quarter to manage our inventory as we transition into the spring season.”

Among other department stores reporting:

• Nordstrom recorded an 8.6% rise in December same-store sales, beating the 3.6% estimate; and
• Bon-Ton Stores grew 2.4%.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

Polls

Are you hiring seasonal employees this year?

View Results

Loading ... Loading ...