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!

Costco Misses, L Brands Beats on July Same Store Sales (Update 1)

Updated from 11 a.m. ET with new information

NEW YORK (TheStreet) -- Retailers that still report monthly same-store sales had mixed results for the month of July. The teen segment in particular reported results below expectations, fueling the argument that the back-to-school selling season, the second-largest sales season behind holidays for retailers, will be disappointing.

Of the 11 companies that are tracked by Thomson Reuters, same-store sales have come in below Wall Street expectations, registering 3.9% growth, compared to an estimate of 4.4%, yet above the 1.4% sales growth in the year-earlier period. Excluding drug stores, July same-store sales registered 3.3% growth versus the 3.9% estimate.

Gap (GPS) said late Thursday that July same-store sales data rose only 1% for the period, just short of analysts' average estimate of 1.6% and significantly below the 10% comparable sales growth it reported last year.

Gap said net sales for the second quarter rose 8% compared to a year earlier to $3.87 billion. Net sales for the four-week period ended Aug. 3 rose 5.6% to $1.12 billion.

Gap upped its guidance for the second quarter. It expects diluted earnings per share between 62 cents and 64 cents a share. Analysts on average expected the company to earn 59 cents a share on $3.8 billion of revenue.

Shares were falling 1.4% to $44.90 after the markets closed.

Also see: Retailers Brace for Lower Back-to-School Sales

July sales for Costco Wholesale (COST), the biggest company that still reports monthly sales, also came in below the average analyst estimate. Shares closed 1.6% to $117.39.

The Issaquah, Wash.-based company reported net sales of $7.87 billion for the four weeks ending August 4, up 7% compared to July 2012.

Comparable sales for the four-week period rose 4% vs. 5.1% expected by analysts. Excluding changes in gas prices and foreign exchange rates, the company posted comparable sales of 5% for the month.

On the other hand, L Brands (LTD), the parent company to Victoria's Secret, Bath & Body Works and La Senza, posted comparable store sales that were above expectations, boosted by strong comps at Bath & Body Works and La Senza.

L Brands' net sales for the four weeks ending August 3 rose 4.4% to $678.4 million vs. the 2012 four-week period that ended on July 28, 2012.

The company reported overall comparable store sales increase of 3% for July versus the 1.5% expected by analysts. July sales rose 6% at Bath & Body Works compared to expectations of 0.5% growth. Similarly, sales rose 9% at La Senza vs. the expected 1.4%, according to Thomson Reuters.

L Brands raised its second-quarter earnings guidance by 5 cents above the high end of the range previously given. The company expects to report earnings per share of approximately 60 cents on August 21 vs. its previous guidance of 50 cents to 55 cents, above last year's adjusted earnings result of 50 cents a share.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
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 17,083.80 -2.83 -0.02%
S&P 500 1,987.98 +0.97 0.05%
NASDAQ 4,472.1080 -1.5890 -0.04%

Brokerage Partners

Rates from Bankrate.com

  • 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