Filed under: Bad news, Industry
September retail sales numbers are in, and they’re not good. Apparel sellers comprised the retail group that reported lowest sales numbers this morning. Mega-retailer Wal-Mart Stores, Inc. (NYSE: WMT) posted a small sales gain — almost at the level expected — while offering a raised outlook for its third-quarter profit. However, cost cutting was cited as the reason for the raised outlook, not expected sales increases. Wal-Mart’s September same-store sales increase came in at 1.5%, just under the 1.8% expected from analysts.
A longer summer season and a blurry economic outlook were cited as reasons for the overall September retail sales slowdown, and the usual suspects of less credit availability and housing market troubles were referenced. No surprises there.The question that came out was if rising commodity prices like gas and food would dampen the holiday shopping season about to get underway.
The abnormally warm weather in many parts of the country made fall clothing sales come in under expectations as well, which is not surprising. Many are still wearing summer clothes (from what I have seen), even as fall is officially here. The weather, it seems, is behind schedule. More to come as the September same-store sales data from more retailers streams in today. With foreclosures having doubled recently, we could be in for a rather disappointing holiday season soon.
Read | Permalink | Email this | Comments
Entries (RSS)