Retail Sales Rise, Miss Expectations (COST, SSI, BKE)

Overall, retailers are expected to report slowing sales growth for June. Warm weather in the winter months may have contributed to the slowdown, as consumers likely bought warm weather goods earlier than usual.

Reports from companies such as Costco COST have already shown slowing sales growth. For June, Costco reported that sales excluding fuel rose 3 percent year-over-year compared to expectations of a 3.5 percent rise. Retailers as a whole are expected to report that same store sales rose 2.4 percent in June, approximately one third of the pace seen last year. Same store sales rose 7.7 percent in the same period in 2011.

Costco said that the timing of the July fourth holiday contributed to the slower rate of June sales growth. In 2011, the holiday fell on July's first Monday, so its sales were pulled forward into June, according to Costco. If this is the case, the fourth of July might bolster July and third quarter 2012 sales more than the holiday did in 2011.

Limited Brands LTD continued its streak of bucking the trend, as sales rose 7 percent in June compared to estimates of a 2.4 percent gain. Sales of Victoria's Secret products drove sales higher as other brands such as Bath and Body Works saw sales growth slow from a year ago.

Buckle Inc. BKE reported its first year-over-year monthly sales decline in two and a half years, as sales fell 2.5 percent in June. The consensus estimate was for a flat year-over-year reading. As a result, sales at the youth retailer were significantly worse than expectations.

Stress in the economy and severe weather towards the end of the month likely contributed negatively to sales growth. Also, weaker than expected economic data has shown stresses in the economy, which may have subtracted from sales.

Geographically, retailers showed mixed results. Costco reported that sales in the Midwest and the Northwest of the United States were strong in June. However, Stage Stores SSI reported that the Northeast, the South Central, and the Southwest were strong in sales growth in June. As more companies report same store sales over the next few weeks, investors will see whether these discrepancies are store-specific or relate more closely with the types of products sold.

Thursday morning, Costco shares rose approximately 0.1 percent in U.S. trading. For the day, Limited Brands shares rose around 6.4 percent to $46.97 per share.