In a report published Friday, Wedbush analyst Morry Brown recapped May same-store sales data for retailers.
Brown noted that four out of five retailers he follows posted May same-store sales that were either in line with expectations or above expectations.
Zumiez: The Lone Miss
Zumiez Inc. ZUMZ reported a 2.2 percent same-store sale decline in May, missing the consensus estimate of a 1.8 percent growth. Brown attributed the miss to a slowdown over the last two weeks of May and a "lack of newness" in fashion trends which negatively impacted traffic.
Buckle: Denim Showing Improvements
Buckle Inc BKE reported a 2.4 percent same-store sales growth in May, exceeding the consensus estimate of negative 0.9 percent. Brown noted that he was "encouraged" by the results as men's denim was called out as a top performing category and women's denim was mentioned as a top performing category for the first time since April 2013. In addition, the women's business posted its first monthly comp out of negative territory since October 2013.
Gap: Ongoing Fashion Challenges To Continue Despite Beat
Gap Inc GPS reported a 1.0 percent same-store sales decline in May, exceeding the consensus estimate of a 2.4 percent decline. Brown pointed out the company's same-store sales breakdown was "modestly" better across all divisions but the company is still expected to face ongoing challenges through at least year end.
L Brands: Strong Momentum
L Brands Inc LB reported a 5.0 percent same-store sales gain in May, exceeding the consensus estimate of 2.8 percent. According to Brown, the company's inventory remained "well-controlled" with merchandise margins indicated higher year over year. In addition, the analyst suggested that the company is on pace to beat its second quarter earnings per share guidance of $0.60 to $0.65.
Costco: In-Line With Expectation
Costco Wholesale Corporation COST reported a 6.0 percent same-store sales gain in May, in-line with the consensus estimate. Costco's U.S. business saw a 5.0 percent same-store sale gain which was short of the 5.7 percent analysts were expecting. On the other hand, Costco's international business reported an 8.0 percent same-store sales gain which was higher than the 7.5 percent expected.
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