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Just like you never want to hear a doctor say "oops" in the operating room, you never want to see a going-concern statement
in a financial report about a company you own. Accountants throw these in when they've been over the books, talked to customers,
and checked the horoscopes and have concluded there is "substantial doubt" about a company's ability to remain in business.
In short, don't blame the accountants if the company files for bankruptcy protection.
You¿d reckon that a going-concern
statement would be enough to send investors running to the exits, but it's not. True, many large institutions automatically
bail when an existing company gets slapped with one of these, but many individuals (often wrongly) take a chance they know
more than the bean counters.
During the tech boom of the late 1990s, many companies actually went public even though they had been hit with going-concern statements. Many of those companies subsequently disappeared. Enough said.
Home / Markets
Thursday, June 05, 2008
Same-Store Sales Roundup
Associated Press
![Woman Shopping || Consumer Spending || Retail [276]](/images/stories/consumerShopping_1.jpg)
Wal-Mart Stores Inc.
Wal-Mart Stores Inc. said Thursday total U.S. same-store sales during the four-week period ending May 30 rose 4.4% due to strong sales of grocery, health and wellness and entertainment products.
Same-store sales, or sales at stores open at least a year, is a key measure of retailer performance, because it measures growth at existing stores rather than from newly opened ones.
Analysts polled by Thomson Reuters, on average, forecast a 1.6% increase in same-store sales.
Excluding fuel sales, same-store sales for the month rose 3.9%.
Same-store sales increased 4% in its Wal-Mart (WMT) Stores segment, while same-store sales at Sam's Club stores increased 6.5% during the month.
Analysts anticipated same-stores sales growth at Wal-Mart stores to rise 1.7% and Sam's Club sales to rise 2.6%.
"Our comparable-store sales continue to increase because of our price leadership, merchandising initiatives and operational improvements," Eduardo Castro-Wright, Wal-Mart U.S. president and chief executive officer, said in a statement. "We also believe we're seeing some benefits from the stimulus checks."
At Wal-Mart Stores, entertainment products such as flat-panel televisions and computers helped bolster sales as well as health and wellness products as the retailer expanded its $4 prescription program to over-the-counter medications.
At Sam's Club stores, sales of fresh foods, dry grocery and consumables were strong, the company said.
For the four weeks ended May 30, total sales, which includes Wal-Mart Stores, Sam's Club and international sales, increased 9.8% to $31.04 billion from $28.26 billion, a year earlier.
Wal-Mart estimates same-store sales during the five-week June period will rise between 2% and 4%, excluding fuel sales. The period runs from May 31 through July 4.
Fred's Inc.
Discount retailer Fred's Inc. (FRED) said Thursday its same-store sales rose 3.4% in May, beating Wall Street analysts' estimates, due to a rise in traffic at its stores.
The rise excludes the impact of 67 stores that have been, or are being, closed.
Analysts polled by Thomson Reuters expected same-store sales to climb 2.8%.
Same-store sales, or sales at stores open at least a year, is a key indicator of retailer performance since it measures growth at existing stores rather than newly opened ones.
The company said for the four weeks ended May 31, total sales jumped 8% to $143.5 million from $132.3 million in the prior-year period.
The retailer said sales from closed stores amounted to $4 million, or 3% of the total May sales increase.
Fred's added said customer traffic in the month rose 2%.
Pacific Sunwear
Specialty retailer Pacific Sunwear of California Inc. (PSUN) said Thursday that same-store sales dropped 3% in May, matching Wall Street forecasts.
Analysts surveyed by Thomson Reuters forecast a same-store sales decline of 3%.
For the four weeks ended May 31, the company's total sales fell 2% to $86.9 million, from $88.5 million last year.
For the year-to-date period, same-store sales fell 2% and total sales dipped less than 1% to $353.7 million, from $356.4 million during the prior year.
Chief Financial Officer Michael Henry noted that same-store sales growth in the clothing category was offset by a large drop in footwear, due the company's planned exit from the sneakers and fashion footwear category that began earlier this year. Same-store sales of accessories also declined.
Limited Brands Inc.
Limited Brands Inc.said Thursday its same-store sales slipped 6% reflecting the absence of Express and Limited Stores sales results.
Analysts polled by Thomson Reuters expected same-store sales to drop 5.5%.
Same-store sales, or sales at stores open at least a year, is a key indicator of retailer performance since it measures growth at existing stores rather than newly opened ones.
Year-ago results included Express sales through July 6, 2007, the closing date of the sale of Limited's majority stake to Golden Gate Capital affiliates. They also included Limited Stores (LTD) sales through Aug. 3, 2007, the closing of the transfer of a majority interest to Sun Capital Partners affiliates.
Total sales for the four-week period ended May 31 declined 15% to $661.3 million from $774.7 million.
Same-store sales for the 17 weeks ended May 31 fell 7%, while total sales dipped 16% to $2.59 billion from $3.09 billion.
Limited Brands, which operates Victoria's Secret, Pink, Bath & Body Works, C.O. Bigelow, La Senza, White Barn Candle Co. and Henri Bendel, currently has 2,985 specialty stores.
Bon-Ton Stores Inc.
Department store operator Bon-Ton Stores Inc. said Thursday that same-store sales fell 9.9% in May on lower traffic levels and cooler weather.
Analysts surveyed by Thomson Reuters expected same-store sales to drop 5%.
Same-store sales, or sales at stores open at least a year, is a key indicator of retailer performance since it measures growth at existing stores rather than newly opened ones.
The company said categories with the strongest monthly performance included ladies' spring outerwear, children's and cosmetics.
Sales for the four-week period ended May 31 sagged 8.7% to $214.3 million.
For the year to date, same-store sales dropped 5.9%, while total sales declined 5.9% to $914.6 million.
Bon-Ton (BONT) runs 280 stores in the United States, including eleven furniture galleries.
Cache Inc.
Cache Inc., a specialty chain of women's clothing stores, said Thursday that May same-store sales jumped 5%, driven by regular price selling, as opposed to promotions, and strength in its sportswear category.
Analysts surveyed by Thomson Reuters forecast May same-store sales growth of 1.6%. Same-store sales, or sales at stores open at least a year, is a key indicator of retailer performance since it measures growth at existing stores rather than newly opened ones.
For the four-week period ended May 24, 2008, total sales rose 6% to $23.3 million.
For the year-to-date period, same-store sales increased 3%. Total year-to-date sales grew 4% to $118.3 million.
Chairman and Chief Executive Thomas Reinckens said Cache (CACH) has continued to experience positive trends for the first ten days of fiscal June.
Wet Seal Inc.
Teen apparel retailer Wet Seal Inc. (WTSLA) on Thursday said May same-store sales fell 2%, a smaller decline than analysts expected, as sales at its Arden B stores fell.
Analysts polled by Thomson Reuters, on average, expected same-store sales to fall 3%.
Same-store sales, or sales at stores open at least a year, is a key measure of retailer performance, because it measures growth at existing stores rather than from newly opened ones.
Total sales for the four-week period ended May 31 jumped 7.1% to $45.7 million.
Results were hurt by a 15.1% drop in same-store sales at the company's Arden B stores, and a 13.2% drop in total sales at that chain. Total sales at its Wet Seal chain rose 13% to $37.4 million and same-store sales rose 1.8%.
The company said it is encouraged by improved merchandise content at Arden B stores and will continue to work on merchandise improvements over the course of the second fiscal quarter.
Mothers Work Inc.
Mothers Work Inc. (MWRK), a maternity apparel retailer, said Thursday its same-store sales climbed 4.3% in May due to one extra Friday and Saturday during the period.
Same-store sales, or sales at stores open at least a year, is a key indicator of retailer performance since it measures growth at existing stores rather than newly opened ones.
Total monthly sales edged up 0.2% to $54.2 million as improved same-store sales were mostly offset by a decline in sales from leased department and licensed relationships.
The company's leased departments within Sears will close before the end of the third quarter as previously announced.
Mothers Work cautioned that its June same-store sales results will be hurt by one less Friday and Saturday during the period.
Mothers Work operated 760 stores, 771 leased department locations and 1,531 total retail locations as of May 31.
Stage Stores Inc.
Clothing and accessories retailer Stage Stores Inc. said May same-store sales rose 0.1%, which beat Wall Street estimates, as customers responded to promotions.
Analysts surveyed by Thomson Reuters predicted a 5% same-store sales decline.
Same-store sales, or sales at stores open at least a year, is a key indicator of retailer performance since it measures growth at existing stores rather than newly opened ones.
Total sales rose 5.1% to $122.6 from $116.6 million, a year earlier.
Categories including cosmetics, childrens, intimate apparel, dresses and footwear had comparable-store sales increases as customers responded to its monthly senior discount day event, which occurred in April last year, and a Memorial Day promotion, Stage said. The retailer also said it had a successful Mothers Day.
Year-to-date, same-store sales are down 4% to $476.1 million, the company said.
Stage (SSI) , which operates 716 stores in 35 states, plans to open five stores in July and closed one in the May period.
Stein Mart Inc.
Department-store operator Stein Mart Inc. (SMRT) said Thursday its same-store sales fell 12.4% in May, more than analysts had anticipated.
Analysts polled by Thomson Reuters, on average, expected same-store sales to fall 9.5%.
Same-store sales, or sales at stores open at least a year, is a key measure of retailer performance, because it measures growth at existing stores rather than from newly opened ones.
For the four weeks ended May 31, total sales fell 8.8% to $108.4 million.
Year to date, total sales have fallen 7% to $460.5 million, while same-store sales have fallen 10.1%.
As of May 31, Stein Mart operated 284 stores, compared with 270 at the same time last year.
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