Macy’s and Kohl’s post disappointing results in June
NEW YORK — Analysts expected 18 top retail chains to report a modest gains in June, as high unemployment and falling consumer confidence have taken a toll on spending.
Among the department store retailers reporting June same-store results so far, the results were largely mixed. Macy’s was among the retailers reporting sales that fell short of estimates. Same-store sales rose 1.2% in June, missing Wall Street’s projected 1.9% gain.
“June sales were below expectations,” said Terry Lundgren, chairman, president and CEO. “In part, this was a function of a macroeconomic environment that is stagnant at best, and lower spending by tourists in cities such as New York. Additionally, the unprecedented renovation at Macy’s Herald Square in New York City, the world’s largest store, is well under way but created more short-term business disruption than anticipated in the June sales period.”
The operator of Macy's and Bloomingdale's generated total revenue in June of $2.41 billion, representing a slight 0.8% gain.
Kohl’s Corp. was also challenged in June, reporting a same-store sales decline of 4.2%, after Wall Street had forecasted just a 3.2% drop. Total sales for the month decreased 2.6%.
“Though June sales were again lower than expectations, we are encouraged by improved sales in the latter weeks of the month as we continued to build inventory levels,” said Kevin Mansell, president and CEO.
Among other department store retailers reporting so far:
Nordstrom same-store sales rose 8.1% in June, solidly beating Wall Street’s expected 4.7% gain;
Saks rose 6%, surpassing the forecasted 4.7% rise; and
Bon-Ton Stores same-store sales dipped .8% in June.