Retailers this week reported mixed sales results for the month of June. Declining consumer confidence and concerns over the labor market resulted in less spending from consumers in June. This hurt retailers’ sales results for the month of June.
However, there were some bright spots. Limited Brands Inc. (NYSE: LTD), operator of a specialty retail business posted strong sales results for June despite a challenging macro environment. Another retailer that posted solid sales results was Saks Incorporated (NYSE: SKS), operator of the Saks Fifth Avenue stores.
Limited Brands, which is the parent company of Victoria’s Secret, reported an increase of 7% in comparable store sales for the month of June. The company’s net sales for the month were $1.077 billion, compared to $1.080 billion reported in June 2011. LTD’s comparable store sales easing beat Street estimates of an increase 2.6%.
For the 22-week period ended June 30, 2012, LTD reported comparable store sales increase of 7%. Net sales for the 22-week period stood at $3.903 billion, compared to $4.015 billion reported for the same period last year.
LTD shares rose sharply earlier in the week as investors’ digested the company’s strong sales results. Year-to-date, LTD shares have outperformed the broad market, gaining 13.56%.
Saks Inc., meanwhile, reported that its comparable store sales for the month of June rose 6%. The New York City-based retailer’s comparable store sales easily beat Street estimates of 4.2%.
SKS shares also rose sharply earlier in the week following the release of better than expected sales results for June. SKS shares have gained 15.08% so far this year, outperforming the S&P 500.
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