07.05.12
Poor weather and fewer tourists left major retailers scrambling last month as results fell short of expectations.
Macy's Inc. missed analysts' estimates for a 1.9% increase with a 1.2% advance. Terry Lundgren, chairman, president and chief executive officer of the company, called the disappointing result "a function of a macroeconomic environment that is stagnant at best, and lower spending by tourists in cities such as New York."
Brendan Hoffman, president and CEO of York, Pa.-based The Bon-Ton Stores Inc., described the month as "uneven" as the company's comps fell 0.8%. "During the Father's Day promotional period, customers responded favorably when we strengthened our marketing with emphasis on value, which also improved the ease of our customers' shopping experince. We were disappointed, however, with sales at the end of the month, which we believe were negatively affected by the time of the July 4th holiday and the severe storms in some of our markets."
He said the men's business performed well in the days leading up to Father's Day.
Gap Inc. registered a flat comp performance during the month, with better-than-expected results for its U.S. stores overshadowed by a 14% drop in its international operations. In North America, Banana Republic was up 5%, Gap up 4% and Old Navy up 1%.
None of the teen retailers reporting Thursday managed to meet or beat expectations. The Buckle Inc. reported a 2.5% decline, versus expectations for a flat performance, while The Wet Seal Inc., expected to drop 7.7%, was down 9% instead. Zumiez Inc. fell just short of the 8.4% increase expected with an 8.2% gain.
However, Stage Stores Inc. beat estimates with a 3.3% increase for the month. As has often been the case in the recent past, Limited Brands Inc. generated the biggest upside surprise. Company comps were up 7% for the month, paced by an 11% gain at Victoria's Secret.
Macy's Inc. missed analysts' estimates for a 1.9% increase with a 1.2% advance. Terry Lundgren, chairman, president and chief executive officer of the company, called the disappointing result "a function of a macroeconomic environment that is stagnant at best, and lower spending by tourists in cities such as New York."
Brendan Hoffman, president and CEO of York, Pa.-based The Bon-Ton Stores Inc., described the month as "uneven" as the company's comps fell 0.8%. "During the Father's Day promotional period, customers responded favorably when we strengthened our marketing with emphasis on value, which also improved the ease of our customers' shopping experince. We were disappointed, however, with sales at the end of the month, which we believe were negatively affected by the time of the July 4th holiday and the severe storms in some of our markets."
He said the men's business performed well in the days leading up to Father's Day.
Gap Inc. registered a flat comp performance during the month, with better-than-expected results for its U.S. stores overshadowed by a 14% drop in its international operations. In North America, Banana Republic was up 5%, Gap up 4% and Old Navy up 1%.
None of the teen retailers reporting Thursday managed to meet or beat expectations. The Buckle Inc. reported a 2.5% decline, versus expectations for a flat performance, while The Wet Seal Inc., expected to drop 7.7%, was down 9% instead. Zumiez Inc. fell just short of the 8.4% increase expected with an 8.2% gain.
However, Stage Stores Inc. beat estimates with a 3.3% increase for the month. As has often been the case in the recent past, Limited Brands Inc. generated the biggest upside surprise. Company comps were up 7% for the month, paced by an 11% gain at Victoria's Secret.