Same-Store Sales Due: Tomorrow's Headliners
NEW YORK (
) -- Retail stocks will be in focus Thursday as chain stores will report comparable store sales for August, which should show that the consumer continues to be squeezed by credit concerns.
Last month's sales results are expected to pour in ahead of Thursday's opening bell, with analysts expecting an overall decline of 3.8%, according to Thomson Reuters. While that number is still weak, it would mark an improvement from July's 5.1% slide. One year ago, same-store sales rose a paltry 0.2% in August 2008.
While discount and department stores are expected to show another monthly decline, analysts expect teen and child apparel shops to post the largest decline.
Abercrombie & Fitch
(ANF) - Get Report
likely saw overall sales fall 23.9% last month, and both
American Eagle Outfitters
(AEO) - Get Report
and
Wet Seal
(WTSLA)
should see declines of more than 9%.
On the other hand, drugstore chains should see comparable-store sales rise, thanks to
Walgreen
(WAG)
. On Wednesday, the pharmacy chain said its same-store sales rose 1.9% in August, although that figure missed analysts' forecasts.
While Thursday's data will certainly be worth watching, September's sales data will be arguably more important. Thomson Reuters analyst Jharonne Martis said September will be the month to watch as retailers will start facing significantly easier comparisons to year-ago figures.
"Additionally, the shift in the Labor Day weekend moved some August sales into September," she wrote in a research note. "Lastly, teenagers are back in school in September, eying their classmates' outfits and gear, and hitting the malls to shop for the latest trends."
Retail sales won't be the only data investors will be sifting through. On the economic front, the Labor Department will release the weekly read on initial jobless claims at 8:30 a.m. EDT, with economists expecting no change from the previous week. It will be the last jobless claims report before the government releases its nonfarm payrolls report for August on Friday.
At 10 a.m. EDT, the Institute for Supply Management will post the August read on its services index, with economists expecting a rise to 48 from 46.4 in July. On Tuesday, the ISM said its manufacturing index increased to 52.9, which indicates expansion (rather than contraction) in the manufacturing sector.
Turning to earnings, several companies will be out with quarterly reports before the start of trading.
Del Monte
(DLM)
,
Ciena
(CIEN) - Get Report
,
UTI Worldwide
(UTIW)
,
Teekay Shipping
(TK) - Get Report
will post earnings results before Thursday's session begins.
-- Written by Robert Holmes in New York
.
