Retail comparable store sales managed a low-singles increase for the fiscal month of October as continued warmer than average weather battled marketplace worries over a looming recession for which external factor could do the most to hamper growth. (For the full comps chart click here)
According to a preliminary tally of 44 retail-chain stores compiled by the International Council of Shopping Centers, October same-store sales grew just 1.6% in the month as the warm weather slowed comps by approximately 0.75 percentage points.
For the year-to-date period, the ICSC estimates that average monthly comp sales growth was 2.2%, though at a higher rate without Wal-Mart.
Excluding Wal-Mart, same-store sales grew 2.3% for the month and 3.0% for the YTD period.
Wholesale clubs saw the strongest comps growth for the month, up 5.8%, while department stores decreased 1.7%. The ICSC data showed teen retailers to have comped down 1.6% for the month, but this does not include results from Zumiez or Pacific Sunwear.
According to retail point-of-sale data compiled by SportScanINFO, the sporting goods market saw decent growth in footwear relative to the market as a whole, but apparel sales were severely slowed.
Sport Footwear posted mid-singles dollars growth for the month on a low-singles improvement in average selling price. Sales were driven by Lifestyle/Fashion Athletic product, as well as Canvas and Skate. Skate was up in the strong-teens for the quarter, but a strong double-digit decrease in sales of Heelys product limited growth in the overall Action Sports Footwear category.
Sport specialty and the Internet outpaced all other channels, while full-line Sport Footwear declined.
The Sport Apparel market saw a high-teens decrease in dollars for the fiscal month following the warm weather discussed by the ICSC and in previous reports in SEW. Cool weather categories like Outerwear, Sweats/Fleece and Casual Pants all saw double-digit sales decreases. Growth was present in warmer weather categories like Shorts, Short-Sleeve Ts and Skirts, which were all up double-digits courtesy of the warm month.
Pacific Sunwear of California, Inc. saw a 0.5% increase in fiscal October net sales to $85.3 million from $84.8 million for the same period last year. Total company same-store sales decreased 0.8% during the same period. By concept, PacSun same-store sales increased 2.3% and demo same-store sales decreased 22.8% compared to the same four week period last year.
For the third quarter, sales increased 7.9% to $373.1 million from $345.7 million for last year's quarter. Total company same-store sales increased 5.0% during the same period. By concept, PacSun same-store sales increased 7.7%, but demo same-store sales decreased 18.3% compared to the same period last year.
The company raised its earnings outlook for Q3 to a range of 14 cents to 15 cents per diluted share from its previous guidance of 10 cents to 13 cents per diluted share. However, when including the impact of store asset impairment charges of approximately $48 million, or 41 cents per diluted share, and inventory and other reserve charges of approximately $5 million, or 4 cents per diluted share, associated with the company's previously announced decision to seek strategic alternatives for its demo stores and to close its One Thousand Steps stores, reported earnings per share for Q3 will actually be a loss of approximately 30 cents to 31 cents.
The Buckle, Inc. net sales for the month of October increased 20.3% to $50.0 million from net sales of $41.5 million last year. October comps jumped 14.9%.
Net sales for the third quarter increased 17.1% to $167.6 million compared to net sales of $143.1 million for the third quarter of fiscal 2006. Comparable store net sales for the third quarter increased 14.3%.
Zumiez Inc. recorded a 5.1% increase in October same-store sales after an increase of 15.9% in the year-ago month. Total net sales for the period increased 24.6% to $24.7 million from $19.9 million last year.
For the third fiscal quarter, the company expects to report diluted earnings per share in the range of 27 cents to 28 cents per share, versus diluted earnings per share of 24 cents in the third quarter last year.
For the full year, the company expects earnings per diluted share to be in the range of 92 cents to 94 cents compared to fiscal 2006 earnings of 73 cents per diluted share. This range is down from guidance given at the end of Q2 of diluted earnings per share in the range 97 cents to 99 cents for the year.
DSW Inc. saw an 11% increase in third quarter sales to $367.4 million from $332.2 million for the year-ago quarter. Same-store sales, however, decreased 3.0% for the period after increasing 2.6% last year.
Shoe Carnival, Inc. recorded a 5.0% decrease in comparable store sales for the third quarter as net sales slid 8.0% to $173.9 million from $189.1 million for the same period one year ago. The company had guided for sales to range from $183.0 million to $186.0 million at the end of the second quarter.
Following the sales decreases, the retailer said it anticipates third quarter earnings to range from 32 cents to 33 cents per diluted share, down from earlier guidance of 44 cents to 48 cents earnings per diluted share and well down from the 61 cents per diluted share reported in the prior-year period.
