This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Retail Sales Miss the Mark

Updated from 9:47 a.m. EDT

U.S. retail chains reported another soft month of sales on Thursday as bad weather and high gas prices kept shoppers at bay in June.

The results fueled Wall Street's concerns about consumer spending, but analysts were quick to point out that retailers were facing their toughest monthly comparisons in over a year.

Ken Perkins, president of RetailMetrics LLC, said his firm's index tracking over 60 major retailers showed a 2.8% overall increase in same-store sales for the month, missing its previous forecast that called for a 3% gain.

Perkins called the results a "mixed bag," noting that, excluding Wal-Mart's (WMT - Get Report) lackluster performance, the index rose by a respectable 4.4%. Last June, the index posted a gain of 5.4%, so many retailers faced high hurdles this time around. Meanwhile, heavy rains and flooding across several regions of the country made for a tough business climate.

"As for the broader picture, it does look like the economy is starting to slow here a bit thanks to high oil prices and the slowing housing market, but as the job market continues to show strength, it's hard to say that those factors are affecting these sales figures here," says Perkins. "We'll be watching July numbers very closely. This is the third soft month in the last five, so continued softness would really show that the consumer is starting to feel some fatigue."

Wal-Mart, the world's largest retailer, said its same-store sales rose 1.2%, matching a forecast provided last weekend. Wal-Mart pegged second-quarter earnings at 70 cents to 74 cents a share; analysts were calling for 73 cents a share.

Wal-Mart's chief competitor, Target (TGT), beat expectations with a 4.8% jump in June comps. Wall Street's estimate called for a 4.3% gain, according to Thomson First Call. The retailer said it expects to meet or surpass analysts' estimate for second-quarter earnings of 69 cents a share. Target also forecast that its July same-store sales will increase in a range between 4% and 6%.

To watch Nat Worden's discussion with Farnoosh Torabi about same-store sales, please click here .

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
LTD $0.00 0.00%
CHS $17.60 0.00%
COST $148.12 0.00%
GPS $40.86 0.00%
PSUN $2.47 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs