Retailers Post 1.2% Apr Same-Store Sale Rise;Loss Was Expected
May 07 2009 - 10:43AM
Dow Jones News
Retailers have posted a 1.2% rise in same-store-sales for April,
beating expectations for a small decline as many, including
Wal-Mart Stores Inc. (WMT) exceeded expectations. But the gains in
many cases remain incremental and analysts say a full recovery is
still a ways off.
The April sales figures "are encouraging, but I wouldn't call
them a victory," said Chris Donnelly, partner in the retail
practice of consulting firm Accenture.
Donnelly based his assessment on less-sluggish trends, as April
comparable store sales were expected to drop by 0.2% by Thomson
Reuters.
Reports indicate that many stores that have been losing business
are still seeing declines, but at a lower rate. A number of
retailers that have been posting growth are seeing bigger
increases.
"We're looking at signs of a potential stabilization," Donnelly
said.
But not everywhere, as the upper end is still struggling. Saks
Inc. (SKS) posted a 32% drop in stores open at least a year.
Analysts had projected a 30.5% decline. Neiman Marcus reported a
24.6% decline in April same-store-sales for its namesake unit and
Bergdorf Goodman, seeing weakness everywhere it operates and in all
merchandise categories.
Wal-Mart posted a rise of 5%, well ahead of projections for a
2.9% gain, with apparel the only category of its six segments to
see a falloff in sales year-over-year.
Aeropostale (ARO), which has been on a roll, turned in its best
performance yet, a 20% rise when analysts expected an 8.5% gain.
The showing outpaced perennial winner Buckle (BKE), whose advance
came in at 18.2%, although was well ahead of projections for
10.6%.
Abercrombie & Fitch (ANF) even showed a bit of upside, with
a comp drop of 22% that was better than expectations for a 27.3%
decline.
Many retailers benefitted from the shift of Easter to April this
year from March in 2009, but analysts said all of the improvement
cannot be chalked up to the calendar change.
"Things look a little better than in prior months," Erin
Armendinger, managing director of the Baker Retailing Initiative at
the Wharton School. "There may be signs of light in the future but
we are not there yet."
Consumers "are still going to places they are sure are offering
low prices," Armendinger said. "What we are not seeing yet is a
dramatic change in sentiment. The numbers are better, but still
generally not good."
Consumers are still contending with high unemployment, the
housing crisis and less use of credit cards, all of which will
continue to keep spending relatively muted for some time, analysts
said.
By Karen Talley, Dow Jones Newswires, 201-938-5106;
karen.talley@dowjones.com