US Retailers Report Modest June Sales Rise

(RTTNews) - Most US retailers on Thursday reported modest June sales increases at established stores, as the first three weeks of the month had cold and wet weather, with sales picking up later. Sales for the month was also positively impacted by lower gas prices and improving job market that led to better consumer spending, which accounts for 70 percent of all economic activity.

June is also a weak and promotional month for retail sales ahead of the back-to-school season, the second-biggest selling period after the holiday season.

A report released from the Conference Board on June 25 showed that U.S. consumer confidence has unexpectedly seen a substantial improvement in the month of June, with the index jumping to a five-year high, as consumers are considerably more positive about current business and labor market conditions than they were at the beginning of the year.

The consumer confidence index surged up to 81.4 in June from a downwardly revised 74.3 in May. Economists had been expecting the index to dip to 75.0 from the 76.2 originally reported for the previous month.

Comparable-store sales or comps is a key retail industry performance metric to gauge activity at store locations that have been open for at least a year. Analysts polled by Thomson Reuters expected the retailer's comparable store sales to increase 3.6 percent in June, compared to the 1.8 percent drop in June 2012.

Apparel retailer L Brands, Inc. (LTD), the operator of Victoria's Secret and Bath & Body Works chains, said its June comparable store sales rose were flat, reflecting positive sales at Bath & Body Works stores and negative at Victoria's Secret Stores. The result missed Street expectations for a 2.0 percent increase. Net sales were $1.10 billion, up from $1.07 billion last year.

Another teen apparel retailer, Buckle, Inc. (BKE) announced that comparable store net sales for the month of June increased 3.4 percent, beating analysts' expectations for 3.0 percent increase. Net sales also increased 3.9 percent to $82.5 million from last year.

Meanwhile, value-priced fashion apparel retailer Cato Corp. (CATO) reported that June same-store sales were up 1 percent, and total sales increased 3 percent from last year to $86.1 million.

Stein Mart, Inc. (SMRT) reported a 6.5 percent growth in comparable store sales for the month of June. Total monthly sales also grew 2.6 percent to $109.0 million from the prior-year month.

"Our June comparable store sales increase of 6.5 percent continues our strong sales trend. I am pleased with our momentum and the great merchandise we have in our stores," CEO Jay Stein said.

Another specialty retailer of action sports related apparel, footwear, equipment and accessories Zumiez, Inc. (ZUMZ) reported Wednesday that its comparable store sales for June increased 1.0 percent, missing analysts' expectations for a 2.4 percent increase. Total net sales also grew 14.5 percent from last year to $58.8 million.

Off-price retailer TJX Cos., Inc. (TJX) and discount retailer Ross Stores Inc. (ROST) have also joined the growing list of companies that have stopped reporting monthly sales results.