Many of the leading U.S. retailers have reported weak September sales with many cutting bottom-line expectations due to unusually warm weather.
Wal-Mart Stores Inc the industry leader blamed warmer-than-normal weather and tighter consumer spending for weak sales of cold-weather items.
It said that despite raising guidance for the full quarter on improved margins and lowered expenses, its sales came at the low end of expectations increasing 1.4 percent increase in same-store sales.
The company said overall apparel and home goods sales stayed weak, but low-margin food outperformed sales of general merchandise.
It said that it would raise its third-quarter earnings guidance.
‘Dismal September’
Retailer Gap Inc also reported worse – than- expected September sales as stores open at least one year fell seven percent, worse than the 4.4 percent decline that analysts expected.
Other retailers who suffered dismal sales include American Eagle Outfitters Inc whose same-stores fell two percent in the month.
Limited Brands Inc also fell 4.4 percent, with a decline in sales of its intimate apparel and sleepwear. It’s Victoria's Secret and Bath & Body Works stores were hurt by negative traffic levels, the company said.
Both companies cut their quarterly earnings outlook.
Teen retailer Wet Seal Inc, who also cut its quarterly earnings, forecast earlier this month reported sales at stores open at least one year was down seven percent.
Macy's Inc also blamed the weather for a 2.7 percent decline in the month.
October 11 2007