U.S. Retailers Report Solid Same-Store Sales In August

The Gap Inc. (NYSE:GPS) and Macy’s, Inc. (NYSE:M) same-store sales for the month of August beat the consensus estimates of analysts.
U.S. Retailers Report Solid Same-Store Sales In August

Macy’s posted more than  $1.8 billion total same-store sales, a 5.7 percent increase from its $1.7 billion total same-store sales in August last year. The company topped the 3.3 percent average gain expected by analysts.

The company generates a large chunk of its sales growth online, 37.4 percent of its total sales in August, and 35.2 percent year-to-date.

In a statement, Macy’s, Inc. (NYSE:M) CEO Terry Lundgren said he was happy with the result of their back-to-school millennial customer categories and its feminine apparel. According to him,  “Sales exceeded our expectations in August, and the strength was broad-based across merchandise categories, geographies, and channels.”

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The company’s total sales year-to-date was $14 billion, 3.9 percent higher than its total sales a year earlier.

On the other hand, The Gap Inc. (NYSE:GPS) reported a 9 percent increase in same-store sales this month. The result beat the average 5.4 percent gain projected by analysts. According to reports, the company’s business segments reported sales increases in August, including Gap North America (9 percent), Banana Republic North America (8 percent), and Old Navy (12 percent).

A report from Bloomberg cited the observation of Adrienne Tennant, analyst at Janney Montgomery Scott Llc. in Washington, regarding the solid performance of retailers this August. According to Tennant, aggressive promotions and cooler temperatures in the Northeast pushed sales and traffic during the second half of the month.

The research firm ShopperTrak, estimated an 11 percent increase in U.S. retail traffic this month, the highest for the past three years.

Commenting on the positive result of same-store sales of retailers, Chris Donnelly, global managing director of retail practice at Accenture Plc (NYSE:ACN), said, “Despite a lot of challenging macroeconomic fundamentals, the American consumer finds these opportunities where they just pick themselves up and they go out and shop, and that’s what we saw this month. Most retailers are beating the estimates and most of their estimates were ambitious.”

According to Donnely, retailers are more aggressive in encouraging more people to go to the store and buy their products. He said the most interesting part is that people spent across the board.

Other retailers that posted solid performance in same-store sales include Target Corporation (NYSE:TGT), 4.2 percent; Costco Wholesale Corporation (NASDAQ:COST),  6 percent; and Limited Brands, Inc. (NYSE:LTD), 8 percent sales.