RETAIL SALES IMPROVE SLIGHTLY
This morning’s retail sales data was not strong, but did not exhibit the same weakness we’ve been seeing of late. The ICSC reported week over week sales up 0.6% while the year over year figure came in at -0.2%. The Redbook sales came in at -2.4% which is substantially better than the consecutive -4% figures we’ve been getting. Econoday reports:
Redbook, like ICSC-Goldman, reports strength in the Sep. 5 week with its year-on-year same-store sales tally at a well above-trend minus 2.4 percent. The report said discount stores did well, benefiting from promotions, though department stores reported mixed results. It noted the back-to-school is winding down for some retailers while other retailers expect the season to extend through the month.
All in all, it sounds like retail sales for this week were boosted by last minute back to school shopping. Overall, the back to school season was a disappointment and we shouldn’t be shocked to see retail sales continue to struggle in the weeks and months ahead.
I don’t know about elsewhere in the country, but in Michigan kids were out of school all last week. That wasn’t the case last year and could help to contribute to sales. I’ll need to see more weeks of consensus beats for this to mean much. It is somewhat stunning that ICSC couldn’t beat YoY comparisons to a time period that was nine months into a recession and post Fannie/Freddie meltdown.
Limited Brands has gone from $6 to $15 a share since March
Check their August retail sales report below—Impressive!
Limited Brands
Profile – Limited Brands, Inc.
Limited Brands is a specialty retailer of women’s intimate, apparel, beauty, personal care products, and accessories. Brands include Victoria’s Secret, Bath & Body Works, La Senza, Henri Bendel, and White Barn Candle Company. As of Aug 29, 2009 the company operated 3,014 stores in the US & Canada, with 1,049 Victoria’s Secret stores, 1,653 Bath & Body Works stores, 306 La Senza stores, and 6 Henri Bendel stores.
Industry Apparel & Accessories Stores
Sector Women’s Retail
2008 Net Sales $9.043 Billion, 10.8% YoY decrease
2008 Direct Sales*** $1.619 Billion, 9.7% YoY increase
2008 Net Income $220.0 Million, 69.4% YoY decrease
Store Count* 3,014
Total Selling Sq Ft** 10.898.000
Total Employees** 90,900
*as of 8/29/09 **as of 1/31/09 ***online & catalog sales
Monthly Same-Store Sales Summary – August 2009
Limited reported a decrease of 4.6% in net sales and a 4.0% decline in overall same-store sales on top of a 7% decrease in the same period last year.
They have now reported 24 consecutive months and 8 straight quarters of negative same-store sales.
Results by segment were: Victoria’s Secret Stores -5%,
Victoria’s Secret Direct -14%,
Bath & Body Works -1%, and La Senza -9%
.
The company said retail inventories per sq ft are down 6% from last year and down 25% over a two-year period.
Limited expects the same-stores sales decline for September to be in the low to mid single digits.
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I love these Retailers– another double–check out August
Macy’s stock has gone from $6 to $16 since March
Profile – Macy’s, Inc.
Macy’s is a department store retailer offering apparel and accessories for men, women, and children, as well as cosmetics, home furnishings, and other consumer goods. As of Aug 29, 2009 the Company operated a total of 851 stores in 45 states, the District of Columbia, Guam and Puerto Rico including 762 full-line stores and 89 Home/Furniture/Clearance stores, with 811 Macy’s stores and 40 Bloomingdale’s stores.
Industry Department Stores
2008 Net Sales $24.892 Billion, 5.4% YoY decrease
2008 E-Commerce Sales $1 Billion, 29% YoY increase
2008 Net Income -$4.803 Billion
Store Count* 851
Total Store Sq Ft* 154,884,000
Total Employees** 167,000
*as of 8/29/09 **as of 1/31/09
Monthly Same-Store Sales Summary – August 2009
Macy’s reported a decline of 8.5% in net sales and an 8.1% decrease in same-store sales on top of a 4.8% decline in the same period last year.
They have now reported 16 consecutive months as well as 9 straight quarters of negative same-store sales results.
For the month, online sales, which are included in the overall same-store sales calculation, were up 15.1% from last August, and are up 13.0% for the year to date.
I am not sure what’s going on anymore. This market hasn’t run on any fundamentals for a long time. Retail numbers bad, market goes up. Retail number less bad, market goes up. Consumer credit is down, market goes up. Just sit by and enjoy this freak show until next quarter earning
The following I found on the web earlier today and it is not atypical of this market spikes up on good, bad or no news-
NEW YORK, NY So far so good. I must say that I’m very impressed. When I woke up at 3:50 AM EST equity futures were sinking hard and fast. Then, there was this slow but determined effort to lift equities in the absence of news and in the shadow of the President’s big address tonight. The market seems ignorant of the possibility that the President may come out swinging in such a way as to have negative ramifications on big business and high earners.
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