The majority of retailers posting same-store sales Thursday fell short of estimates, indicating that with unemployment on the rise, consumer spending has yet to provide a base to growth. The pattern in consumer spending is often the foremost influence on the economy and stock markets, since strong economic growth translates to healthy corporate profits and higher stock prices.
According to Thomson Reuters (TRI), the bulk of retailers that have reported their same-store sales results fell short of analysts’ estimates, excluding a few that topped expectations.
Among those that missed estimates was American Eagle (AEO), which posted a same-store sales decline of 5% versus expected gains of 2%. Aeropostale (ARO) is another retailer that didn’t meet analysts’ expectations. The co.’s same-store sales gain of 3% was far worse than the 13.6% increase that was expected. Target (TGT) also fell short of analysts’ estimates. The discount retailer posted a same-store sales decline of 0.1%, slightly worse than the breakeven results analysts had expected.
Among those topping estimates were Costco Wholesale (COST). The company reported a 5% increase in its October same-store sales versus analysts estimates of 4.7%. Also, topping estimates were drugstore retailer Walgreens (WAG) and children’s apparel retailer Children’s Place (PLCE). Meanwhile, department stores showed a mixed results.
Here is a full CNBC list of October Same-Store Sales