June Sales Get Some Help From Promotions

July 10, 2014

Retail sales generally improved in June, helped by good weather and big discounts as retailers look to clear inventory for the back-to-school season.

Costco Wholesale Corp. reported a 6% increase in June same-store sales, helped by higher fuel prices.  Its results topped Wall Street estimates.

Excluding the impact of foreign exchange rates and gasoline prices, Costco's same-store sales increased 6% for the five-week period ended July 6.  The metric rose 5% in the United States and 7% overseas.

Net sales rose 10% to $10.89 billion.

While the retailers that still report same-store sales were in line or slightly better than had been expected, there were exceptions.  L Brands reported a 2% increase in June same-store sales, below estimates for a 3.1% increase.  Growth was led by a 3% increase in sales for the company's Victoria's Secret brand.

In other June results:

• Zumiez reported a 3.1% rise in same-store sales.  Net sales for June rose 11.1% to $65.3 million, from $58.8 million in the year-ago period.
• Stein Mart's same-store sales increased 2.6%.  Total revenue for the five weeks ended July 5 rose 4% to $113.2 million.
• The Buckle posted a 0.7% increase in same-store sales.  Net sales for the period increased 2.8% to $84.8 million, from $82.5 million last year.
• Fred's same-store sales fell 0.6%.  Total sales for the month increased 2% to $191.2 million, from $187.3 million last year.

Source: Retailing Today