Retailers report dismal December sales
NEW YORK —
Retailers reported dismal sales figures for December on Thursday as even Wal-Mart Stores Inc., one of the bright spots in the industry, finally buckled under the pressures of the deteriorating economy.
As merchants reported their sales figures, confirming fears that the holiday term was the weakest in four decades, the malaise cut from one side practically totality areas from kitchen gadget supplies to jewelry purveyors and teen apparel retailers.
The deep discounts that began well before the official start of the anniversary fit spurred a number of merchants to cut their profits. outlooks on Thursday, fueling greater degree of concerns about the health of the industry.
Among the great number retailers that reported steep sales declines were Sears Holdings Corp., which operates Kmart and Sears stores, luxury retailer Saks Inc., Gap Inc., Abercrombie & Fitch Co. . But the biggest surprise came from Wal-Mart, the world’s largest retailer, which posted a smaller sales gain than the sort of Wall Street expected and cut its fourth-quarter earnings outlook.
“This suggests that the drop income group is feeling the pinch more than we thought and this is clearly reflected in the lower-than-expected numbers at Wal-Mart,” said Ken Perkins, president of investigation company RetailMetrics LLC. “I think it says the thrift is in more dire straits than we thought.”
Wal-Mart, blaming the weak economy and severe winter conditions, said that same-store sales, or sales at stores opened at least a year, rose 1.2 percent. Excluding the impact of declining gasoline prices at the pump, the gain was 1.7 percent. Analysts surveyed by dint of. Thomson Reuters had expected a 2.8 percent increase, excluding fuel.
“The passing from hand to hand economy literary works challenging against all businesses, and retailers have already seen customers pull back on discretionary spending,” Wal-Mart’s Chief Financial Officer Tom Schoewe said in a account. “Consumers are very focused on price and necessities.”
Wal-Mart noted that health and wellness items were the categories that primarily fueled sales. Electronics sales were hard, though the rig out and jewels business was weak.
Given the disappointing sales and higher-than-anticipated expenses, Wal-Mart said it now expects to earn 91 cents to 94 cents per share in the fourth quarter from continuing operations. That’s down from its previous projected range of $1.03 per share to $1.07 per share. Analysts surveyed by Thomson Reuters expected $1.06 by part.
Meanwhile, Costco Wholesale Corp. reported a 4 percent decline in same-store sales, but excluding the impression of lower gas prices and currency fluctuations, it actually posted a 4 percent gain. Lower gas prices are good for consumers, but reduce the sales volume for retailers probably Costco.
Among department stores, Sears Holdings before-mentioned its December same-store sales dropped 7.3 percent, weighed prostrate by a 12.8 percent drop at domestic Sears supplies. The company, whose brands include Kenmore and Craftsman, said Kmart same-store sales malign 1.1 percent.
Macy’s Inc. reported that same-store sales ferocious 4 percent in December, less than the 5.3 percent become feeble that analysts had expected. For the combined November-December period, same-store sales were along the course of 7.5 percent. But the department store chain cut its fourth-quarter and full-year earnings outlook due to heavy markdowns and announced plans to close 11 underperforming stores. The chain operates further than 840 Macy’s stores.
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