Retailers report mixed sales results; Costco sees 5 percent gain
Filed under: Company News, Economy, Costco Wholesale Corp.
Consumers, enticed by cooler weather, early holiday discounts and an improving economy, offered some relief to the retail industry in October.As merchants announced their figures Thursday, the results showed that shoppers certainly were not splurging, restrained by tight credit and a weak job market. But the tone of the reports all pointed to improving sales momentum.
Costco Wholesale Corp.'s (COST) sales at stores open at least a year rose 5 percent. Gap Inc. (GPS) , helped by surging sales at its Old Navy chain, posted a 4 percent gain and upgraded its third-quarter profit outlook above Wall Street projections.
Children's Place Retail Stores (PLCE), Wet Seal Inc. (WTSLA) and Stage Stores Inc (SSI). all reported declines.
Limited Brands Inc. (LTD) reported a bigger-than-expected sales drop.
"Improved macro conditions are leading shoppers to spend more on discretionary purchases," said Ken Perkins, president of retail research firm Retail Metrics."This should bode well for Christmas."
According to a preliminary tally by Thomson Reuters, eight retailers posted results that beat Wall Street estimates, while five merchants turned in sales that missed forecasts.
The figures are based on sales at stores open at least a year and are considered a key indicator of a retailer's health.
Copyright 2009 The Associated Press. The information contained in the AP news report may not be published, broadcast, rewritten or otherwise distributed without the prior written authority of The Associated Press. Active hyperlinks have been inserted by AOL.
Limited Brands Inc. (LTD) reported a bigger-than-expected sales drop.
"Improved macro conditions are leading shoppers to spend more on discretionary purchases," said Ken Perkins, president of retail research firm Retail Metrics."This should bode well for Christmas."
According to a preliminary tally by Thomson Reuters, eight retailers posted results that beat Wall Street estimates, while five merchants turned in sales that missed forecasts.
The figures are based on sales at stores open at least a year and are considered a key indicator of a retailer's health.
Copyright 2009 The Associated Press. The information contained in the AP news report may not be published, broadcast, rewritten or otherwise distributed without the prior written authority of The Associated Press. Active hyperlinks have been inserted by AOL.
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Reader Comments (Page 1 of 1)
11-05-2009 @ 8:50AM
Franklin said...
The only reason you are seeing a boost is the promotional
bulk purchases stores are offering. ( If you buy 5 boxes of cereal the price is 1.99 vs if you buy one it will cost you 3.69.)
The companies are taking a beating which result in thinner
profit margins or even losses, to give the false impression that sales are up. Clothing is even more precarious because people will mend and repair clothes rather than replace. Look-up the number of lay-offs in china if you doubt.
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11-05-2009 @ 11:08AM
Mel said...
Isn't Old Navy the same Old Navy that AOL had listed as one of the companies that was facing Chapter 11? Idiots!
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