Thursday October 7 10:20 AM ET
Discounters See Store Sales Rise
NEW YORK (Reuters) - Discount retailers had shoppers dashing for back-to-school bargains as their results often exceeded plans and could help third quarter earnings.
Tom Tashjian, analyst at Banc of America Securities, said, ''The gains in the discount sector are on or above plan. It look like this pace of growth could provide some upside to some of the earnings estimates.''
Department stores, however, had a fairly easy comparison from last year, since sales were dampened by fears that Asia's economic crisis would spread to the United States, Tashjian said. He said their sales ''were deceivingly better than trend.''
After a string of lagging results, Tashjian said, ''It's nice to see a good number out of Sears.'' Sears Roebuck and Co., the second largest retailer in the United States, reported a 4.1 percent increase in domestic same-store sales, a measure of sales growth at stores open more than a year.
Wal-Mart Stores Inc. (NYSE:WMT - news), the world's largest retailer, announced a 7.2 percent increase in same-store sales and store expansion plans Tuesday --the same day of a conference for securities analysts.
Kmart Corp.'s same-store sales rose 2.5 percent, citing a ''an increasingly promotional'' back to school season, Chairman, President and Chief Executive Floyd Hall said.
Dayton Hudson Corp., which reported a 6.9 percent increase in same-store sales including its department stores, had a 8.6 percent increase at its Target discount division.
Regional discounters and dollar store chains also turned in strong results. Dollar General Corp, Family Dollar Stores Inc. (NYSE:FDO - news), Bradlees Inc. (Nasdaq:BRAD - news), and Ames Department Stores each posted same-store sales that topped 5 percent or more.
J.C. Penney Co. Inc. said sales at its department stores fell 0.1 percent, but it turned in strong performances at its catalog and Eckerd drug store divisions.
Federated Department Stores Inc. (NYSE:FD - news), the parent company of Macy's and Bloomingdales and catalog retailer Fingerhut, said same-store sales rose 3.7 percent. Chairman and Chief Executive James Zimmerman said Hurricane Floyd hurt some of the company's sales on the east coast. |
