Retailers report sales declines for August
NEW YORK — Retailers today posted sales declines for August as shoppers held back on back-to-school purchases and continued to focus on necessities, raising further concern about the holiday season.
Early reports showed six retailers missed analyst expectations while three exceeded estimates, according to a poll by Thomson Reuters.
As analysts look for signs of a recovery amid the recession, consumer spending is closely watched because it accounts for about 70 percent of economic activity. Today's results didn't offer much evidence of a comeback.
The teen sector was weak as back-to-school sales failed to take off. Hot Topic's sales in stores open at least a year fell 8.1 percent, a bigger drop than the 6.9 percent predicted.
The Buckle, typically an outperformer, said results rose but missed analyst expectations. Meanwhile, Zumiez and Wet Seal also reported results dropped but did better than analysts predicted.
Early results are "a bit of a mixed bag," said Ken Perkins, president of retail consulting firm Retail Metrics. "The initial read is a bit soft on the teen apparel side."
Still, he expects sales in stores open at least a year will fall 3.4 percent in August, not as bad as July's 4.7 percent drop.
Limited Brands, which operates Bath and Body Works and Victoria's Secret, said sales in stores open at least one year fell 4 percent, but that beat the 5.9 percent drop analysts expected.
