Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: Bid Buster who wrote (290530)	7/8/2004 3:57:59 PM
From: maceng2	Respond to of 436258

Weak June sales figures prompt jitters By Neil Buckley in New York Published: July 8 2004 16:03 \| Last Updated: July 8 2004 16:03 ======================================================== (the question in my mind is... If you had a good job and it was punted overseas, so now you work for Walmart... where is the "recovery"? You have no money to spend. OK some may buck the trend, but the trend is the trend.... pb) ======================================================== news.ft.com Disappointing June sales figures from retailers fuelled concerns that consumer spending may be weakening, prompting market jitters at the start of the second-quarter corporate earnings season. Retailers blamed high petrol prices, poor June weather, and the shift of the Independence Day holiday into a different trading week - moving it from the June period into July - for the weakness. Wal-Mart, the world's biggest retailer, reported its lowest year-on-year increase in same-store sales, or sales from stores open at least a year, since May 2003, at 2.2 per cent. That was well below consensus analysts' forecasts of 3.6 per cent, according to Thomson First Call. Wal-Mart last week cut its June same-store sales forecast from 4-6 per cent to 2-4 per cent, citing weak Father's Day sales and lower demand for summer items such as air conditioners, swimming pool supplies and lawn and garden equipment. It reiterated its forecast of a modest 2-4 per cent gain for July. Michael Niemira, chief economist of the International Council of Shopping Centers, who compiles same-store sales figures from 80 retail chains, said June sales were up 3.2 per cent overall - a marked slowdown from previous months. "The crucial question is how much of this is temporary and how much is a permanent shift," he said. But Mr Niemira said the fact sales were generally strong for three weeks of the five-week June trading period, with a sharp downturn only in the final two weeks, suggested retailers were right to blame the weather - which worsened in the final two weeks - for much of the weakness. "From July, the comparative figures from last year get tougher, so it will look slower - but it was always expected to look slower," he said. Tracy Mullin, chief executive of the National Retail Federation, the industry body, said the federation's monthly survey of retail executives' opinions also suggested the June weakness was a short-term trend. "We expect to see a rebound in July as summer clearance sales pick up and the beginning of the back-to-school season gets into gear," Ms Mullin said. Target, the number two discount retailer after Wal-Mart, said June same-store sales increased 2.3 per cent, below consensus forecasts of 3.5 per cent. Other big retailers including Sears Roebuck, Federated, the owner of Macy's and Bloomingdale's, Costco and Gap all reported sales below forecasts. At Gap, sales fell 2 per cent, below forecasts of a 4.1 per cent rise. But department store group JC Penney matched expectations, and Neiman Marcus and Saks beat forecasts, as higher-end retailers generally continued to outperform lower-end chains.