Department-Store Sector: Dismal (Updated)

While it's true that some department-store retailers' recent reports managed to skim across analysts' low-balled exceptions, the department-store sector continues to be, in a word, dismal.

Overall the sector was well below the 4.6% decline U.S. chain stores reported for the month, according to the International Council of Shopping Centers. By our tally, department stores saw a drop of 11.5% in sales.

Kohl's(KSS Quote) fared the best out of the sector, tipping .4% compared with the 3.8% decline predicted by analysts.

The value-priced retailer has managed to edge above its competitors during the recession, as shoppers flock to the chain for compelling merchandise at great prices. As a result, the company was upgraded earlier in the week to overweight from market weight by a Thomas Weisel Partners analyst

Macy's(M Quote) posted a 9.1% fall in May same-store sales, slightly higher than Wall Street's estimate of a 9.3% dip, while J.C. Penney tumbled 8.2%, better than the 9.6% decline expected.

J.C. Penney said spring items in its women's division performed the best, while fine jewelry continued to experience softness.

Dillard's(DDS Quote), however, missed expectations, with same-store sales falling 12%. Analysts expected comps to slide only 8%.

Home and furniture exhibited the most weakness at the retailer during the month.

Bon-Ton Stores(BONT Quote)saw comps plunge by 12.1%, hurt by soft sales in furniture, men's, home and ladies' shoes.

But it was the high-end department stores Saks(SKS Quote) and Nordstrom(JWN Quote), that were the biggest losers -- proving yet again that today's consumers are not exactly in the mood to splurge.

Saks saw comps tumble a whopping 26.6%, as sales in every single merchandise category in its Saks Fifth Avenue stores were, well, dismal.