Yep, you'd think these bloated pigs were washed out and cheap.
They now seems to be abandoning the my huricane ate the homework excuse on retail sales.
Estimates lower on September sales
By Jennifer Waters, CBS.MarketWatch.com
Last Update: 4:10 PM ET Oct. 6, 2004
CHICAGO (CBS.MW) -- Retail analysts continued to trim their estimates on same-store sales results as a handful of results come trickling in ahead of Thursday's onslaught.
For Thomson First Call, the aggregate monthly expectation of sales at stores open longer than a year (a key industry measure known as same-store sales) sees a gain of 2.4 percent. That's pared from last week's expectations of a 2.8 percent increase, according to the average compiled by analysts' reports.
At the International Council of Shopping Centers, the projection is for a 2 percent gain over last year's robust results -- at the bottom end of a previous forecast of a 2 percent to 3 percent growth.
Though it was widely expected that retailers would lean on weather issues, particularly on any of the hurricanes that recently hit Florida, it appears now that weather will have little to do with last month's results.
"No one is really blaming the hurricanes," said First Call's Gint Rimas. "We're finding that the estimates of those retailers with higher concentrations in Florida aren't showing much difference than those not in Florida."
Still, don't expect an upside surprise. Specialty retailers that cater to the fickle needs of teens or body-conscious older women initially were thought to perform well. The shift of Labor Day into September also was looking like it would be a boost for the month, shifting out of the traditional long last weekend in August.
"The sector's September performance was far from robust, with apparel likely much weaker than originally expected," said Susquehanna Financial Group analyst Thomas Filandro.
Still, he sees a handful of "market share winners" that will post solid results: American Eagle Outfitters (AEOS: news, chart, profile) and the Children's Place (PLCE: news, chart, profile), as well as Bath & Body Works and Victoria's Secret (LTD: news, chart, profile).
Meanwhile, Merrill Lynch analyst Daniel Barry expects that "September sales will be disappointing for most retailers, particularly department stores," and that weather is a good part of the reason.
Wal-Mart (WMT: news, chart, profile) already has said same-store sales will come in at a gain of 2.3 percent, below the First Call estimate of 3.1 percent.
Big Lots (BLI: news, chart, profile) said same-store sales declined 2 percent and led to a warning on third- and fourth-quarter earnings. See full story.
The company did not blame weather or hurricanes, but indicated it's evident that spending among middle- to low-income shoppers is getting tight.
|
