Colder weather in October helped keep retail sales in positive territory for the month as consumers hit the stores to pick up outerwear, performance apparel, and boots, a trend that did not help the results at the worlds largest retailer. Based on a survey of 57 chain stores conducted by the International Council of Shopping Centers, comparable store sales growth for the month was estimated at 3.0%, which was at the low end of ICSCs forecast for 3.0% to 3.5% growth for the month. Wal-Mart was the culprit for holding the growth in check, as survey comps excluding the giant would have been up 4.9%.
The survey conducted by ICSC does not cover the sporting goods channel, but does track department stores, discount stores, mass retailers, and warehouse clubs. Department stores led the group of retailers reporting results, posting an average 6.2% year-over-year comp sales gain for the sector. Nordstrom was the key in the channel, turning in a strong 10.7% increase for the month, but JC Penney was also enjoying the additional traffic brought on by the weather, turning in an 8.1% gain for the period. (See chart page 9)
The specialty apparel sector posted its first average same-store sales decline since March, dropping 0.2% after a 4.6% increase in September. While the action sports mall retailers were not included in the survey, results were even less positive at Pacific Sunwear, while The Buckle reported somewhat better results and Zumiez continued to roll.
Pacific Sunwear of California reported that total sales for October were $88.2 million, a slight increase over total sales of $88.0 million during the same period last year, but total company same-store sales decreased 7.1% for the period after increasing 7.9% last year. By concept, PacSun comps decreased 6.1% after increasing 8.8% last year and d.e.m.o. same-store sales decreased 12.2% after increasing 2.7% last year. Geographically, management said in a recorded statement that, “comps were negative in all regions.”
Total sales for the third quarter were $375.4 million, down slightly from total sales of $377.5 million during the same period last year. Total company same-store sales decreased 6.7% during the quarter after increasing 4.6% during the year-ago period. By concept, PacSun same-store sales decreased 6.0% after increasing 5.1% last year and d.e.m.o. same-store sales decreased 11.9% after increasing 1.0% last year.
At PacSun, girls apparel comps for the month were down high-single-digits. Continued significant weakness in short-sleeved T's, fashion denim, and knits was only partially offset by strength in fleece, long sleeved T's, and basic denim. Guys apparel same-store sales for the month were up mid-single-digits. Sales of the company's fleece and denim, both basic and branded, and long sleeved knits were the primary sales drivers. Continued significant weakness in the sneaker category caused total footwear comps to be down in the high-20s for guys and low-20s for girls. Accessories were down low-double-digits for both guys and girls during the month.
For d.e.m.o., same-store sales for the month were down mid-teens for girls and down low-double-digits for guys.
For the month, PSUN said that the average transaction value per comp store, average unit retail, and average items sold per transaction were all down slightly. Total transactions per comp store were down mid-single-digits.
The Buckle, Inc. saw net sales for the month increase 6.0% to $41.5 million from net sales of $39.2 million during last years month. Comparable store net sales increased 1.7% for the month after last years 4.3% gain. Net sales for the third quarter were up 3.6% to $143.1 million from net sales of $138.1 million last year. Comparable store net sales for the third quarter declined 0.1% after slipping 0.9% last year.
Zumiez Inc. reported net sales increased 50.9% in October to $19.9 million, compared to $13.2 million for the same month last year. The company's comparable store sales increased 15.9% on top of a 10.0% in the year ago period.
For the month, comparable store sales gains were said to be driven by “an increase in average unit retail and in-store transactions.” Men's sales were noted as the primary positive contributor for the month, although all other departments were said to have positive comps. The company ended October with 233 stores and remains on plan to open 42 new stores in 2006, not including the recent acquisition of Fast Forward.
ICSC is sticking with a 3.0% increase for a forecast for November.
