Thank you for sharing!

Your article was successfully shared with the contacts you provided.

NEW YORK CITY-Retailers’ sales last month, which most chains will report tomorrow, might have suffered due to cooler-than-normal weather, according to analyst reports released this week. Tough comparisons to a strong May in 2004 could also hinder same-store sales, they say.

“We believe cooler weather during the month combined with higher interest rates and gasoline prices could translate into slower sales for retailers, especially in seasonal merchandise,” says Christine Augustine, a Bear Stearns analyst who follows department stores, in a note to investors. She also points out that gas prices are 4% higher than the same period last year.

Some of the companies that Mitchell Kaiser, a Piper Jaffray analyst outlined in a report, face the difficult comparisons to last year. Costco, which he is forecasting at 3% year-over-year same-store sales increase during last month, is up against a 16% jump in May 2004. Big Lots, predicted to have a 2% increase, was up 7.4% last year.

But Lehman Brothers analyst Jeff Black expects at least two of the teen apparel chains he covers to do well. He is forecasting a 16% jump for Abercrombie & Fitch, and a 15% hike for American Eagle Outfitters, compared to last year’s gains of 1% and 10.6%, respectively.

However, Black is not as hopeful for some large men’s and women’s chains. He forecasts a 4.9% drop for Ann Taylor Stores, compared to a 9.9% increase last year and a 4.4% fall for Gap Inc., which posted a 6% gain over the same year-ago period.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.