This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

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) 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

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs