(By Mayur Pahilajani - iStockAnalyst Writer)
New York, NY - Retail sales in the month of November showed no signs of improvement in the economy as data once again showed consumer spending further weakened in holiday season as the world's largest economy was officially declared to be in recession.
Most of the retailers failed to meet the expectations of the market analysts on Wall Street as demand for products dropped, despite increase in the number of shoppers due to Black Friday promotions. The gains in sales at the retailers were reported mainly as gasoline rate dropped last month to record low levels.
Wal-Mart Stores Inc (WMT) reported that its sales excluding fuel jumped by 3.4 percent, which is more than the market analysts' expectation of a 2.1 percent rise in the sales of the discounted products. The company said that it expects December sales to be close to the high end of its fourth quarter outlook, which means its sales would rise up 1 percent to 3 percent. The overall sales in the U.S. for the four weeks ending Nov. 28 increased by 6.5 percent from a year earlier in the same period to $21.48 billion. The total company sales, including sales from international segment, increased by 1.6 percent.
Costco Wholesale Corp.'s (CSTCO) same-store sales dropped last month by as much as 5 percent, compared to the market analysts' expectation of a 2.4 percent drop in the sales at the stores opened a year ago. The sales of the company declined on gasoline prices and the stronger U.S. dollar against international currencies. The overall sales for the four weeks ending Nov. 28 dropped by 3 percent from $5.72 billion to $5.55 billion from a year earlier in the same period, with a 2 percent drop in the U.S. and 15 percent drop in overseas markets.
Macy's Inc. (M) reported that its sales at stores open at least a year plunged by as much as13.3 percent in the month of November, compared to the market analysts' projection of a drop of 12.1 percent in the same month. The overall sales for the four weeks ending Nov. 29 were down by as much as 14.3 percent to $2.33 billion.
Target Corp. (TGT) reported that sales at stores open for at least a year dropped by 10.4 percent last month, compared to market analysts' estimation of a decline of 8.9 percent in sales for the same period.. The company said that its net sales for the four weeks ending Nov. 29 slipped by as much as 6.1 percent to 5.6 billion. Further, the discount retailer said that it expects December's same-store sales to be in a mid-single digit to low double-digit drop. It added that the month's results will be affected by the on-going challenging and volatile economic environment.
J. C. Penney Company Inc. (JCP) reported that its same-store sales declined by as much as 11.9 percent for the four-week period ending Nov. 29, compared to the market analysts' expectation of a drop of 12.7 percent in the same period. The company said that its net sales in November dipped by 11.5 percent to $1.8 billion.
Kohl's Corp. (KSS) said that sales at stores open at least a year dropped by 17.5 percent in the month of November, compared to the market analysts' expectation of a drop of 16.6 percent in the same period. "November sales results were as expected, affected by both lower traffic than last year, and a significant sales shift due to a later Thanksgiving," the retailer said in a statement on Thursday. It added, "Post-Thanksgiving results have been significantly stronger than our prior trend, driven by planned strong promotion." The Menomonee Falls, Wis.-based retailer said that its net sales dropped by as much as 13.7 percent to $1.75 billion.
Nordstrom Inc. (JWN) said that its November sales at stores open at least one year dropped by as much as 15.9 percent, compared to the market analysts' projection of a drop of 17.9 percent. The retailer said that net sales for the four weeks ending Dec. 1 declined by as much as 12.1 percent to $707 million. The company said that the sales of the company were affected by the one less week of holiday shopping compared with the same month last year.
TJX Cos. (TJX) reported that its November sales at stores open at least one year slipped by 12 percent , including a 6 percent drop due to currency exchange basis. The retailer's sales were higher than the market analysts' estimation of the same-store sales to drop by 8.4 percent in the same period. The company's net sales for the four weeks ending Nov. 29 moved down by as much as 9 percent to $1.6 billion.
Rite Aid Corp. (RAD) reported that its November sales at stores open at least one year remained flat, compared to the market analysts' anticipation of a drop of 2.5 percent in the same period. The company said that the net sales in its drug stores for the five weeks ending Nov. 29 dropped by 2 percent to $2.48 billion.
