The combination of unpredictable weather patterns with a shift of Easter into fiscal March proved too much for many retailers in April as only the Luxe and Club channels managed to see much improvement over the year-ago month.
Pacific Sunwear of California, Inc. saw April sales decrease 10.5% to $79.3 million from $88.5 million last year. Comparable store sales for the company decreased 16.5% for the month, while PacSun same-store sales decreased 16.3% and demo same-store sales decreased 18.8%. In April, on a geographic basis, comps were strongest in Texas and the Northwest.
For PacSun, girls' apparel comps for the month were down high-single-digits. Shorts and fashion tanks, camis and baby dolls drove the business, but were not enough to offset weakness in the T-shirt business. Girls swim started weak, but improved throughout the month, comping positive in week four. Guys' apparel comps were down high-teens. T-shirts continued to comp positive and, although initially weak, shorts and swim improved throughout the month. Footwear comped down high-teens. Fashion footwear performed best for both guys and girls, but was offset by weakness in sandals and the continuing weak trend in sneakers. Total accessories were down in the mid-20-s for the month.
For the demo concept, comps for the month were down mid-teens for the guys and down low-20s for the girls.
Total transactions for comp store were down low-double-digits for the month, while the average unit retail was up low-single-digits. The average items sold per transaction was down mid-single-digits, and the average transaction value for comp store was down mid-single-digits.
Looking at the combined nine-week fiscal March/April period, total company comps increased 0.8% versus the same period last year. By concept, PacSun same-store sales increased 2.1% and demo same-store sales decreased 10% compared to the same period last year.
Total sales for the first quarter were $309.3 million, up 4.3% from $296.5 million for last years Q1. Total company same-store sales decreased 1.2%, while PacSun same store sales increased 0.5% and demo same store sales decreased 12.1%. PSUN now anticipates first quarter earnings to be a loss of four cents to five cents per diluted share and second quarter earnings, assuming a low single digit second quarter same-store-sales increase, to be in the range of 18 cents to 20 cents per diluted share.
Zumiez Inc. saw net sales for the month increase 34.4% to $20.2 million, from $15.0 million last year with comparable store sales increasing 3.0% on top of a 19.3% jump in the year ago period.
On a combined March/April basis, comparable store sales were up 10.8%, while first quarter comparable store sales were up 11.3%.
For April 2007, total sales growth at Zumiez was driven by new stores and comp store sales gains, which were driven by an increase in average unit retail. Men's sales were the primary positive contributor for the month, though the retailer failed to include its typical statement of all other departments had positive comps…
Shoe Carnival, Inc. reported first quarter sales decreased 1.7% to $165.7 million from $168.5 million for the same quarter last year. Comparable store sales for the period decreased 3.7%. Women's comp store sales were even with last year; men's was down mid-single-digits; children's, which includes children's athletics, was down mid-single-digits; men's and women's athletics were down mid-single-digits; total footwear was down 3.5%; and accessories was down high-single-digits.
The company attributed the lower-than-expected sales in the first quarter to a decline in consumer traffic, largely resulting from adverse weather, particularly the unseasonably cold and wet weather in the weeks leading up to Easter. SCVL noted that merchandise margins “improved significantly compared to last year, but were more than offset by the increase in distribution costs.”
The company expects diluted earnings per share for the first quarter of fiscal 2007 to be even with or slightly below earnings per share of 54 cents for the same period last year. Included in fiscal 2007 first quarter earnings is approximately $900,000, or four cents per diluted share, in distribution center costs in excess of last year. These costs are primarily related to the conversion to the new distribution center. Additionally, first quarter earnings include a reduction in income tax expense of seven cents per diluted share for state incentives related to the investment in the new distribution center. SCVL also announced the opening of seven stores during the first quarter of fiscal 2007 .
DSW Inc. reported net sales for the first quarter increased 12.8% to $357.0 million compared with $316.5 million for the year-ago quarter. Same-store sales decreased 3.6% for the comparable thirteen-week period versus an increase of 4.2% last year.
Foot Locker, Inc. reported late Thursday that it expects its first quarter earnings to be in the range of 10 cents to 11 cents per share. This range reflects a decrease from the company's original estimate of 34 cents to 37 cents per share.
The company lowered its outlook for the first quarter after posting a 5.1% decline in comparable store sales for the period.
Mathew D. Serra, Foot Locker Inc.'s chairman and CEO said, “While first quarter sales and earnings at our U.S. store businesses fell short of our expectations, our financial results from our international units were generally in line with our plan with earnings increasing from last year's comparable period.”