Macy’s May same-store sales beat Wall Street forecast

NEW YORK, Wed May 30, 2012 – Macy’s Inc. reported better than expected May same-store sales on Wednesday, helped by its growing e-commerce business.

For the four weeks ended May 26, Macy’s same-store sales, which include online sales and sales at its department stores open at least a year, rose 4.2 percent, slightly above the 4 percent increase Wall Street analysts were projecting.

Online sales rose 42.3 percent. Total sales for the period were up 4.1 percent to $2.02 billion. Macy’s also owns the upscale Bloomingdale’s chain.

Same-store sales seen up 4.3 percent in December

NEW YORK ― When top retailers post their December sales this week, Wall Street analysts are expecting them to report a healthy end to the holiday season, helped by discounts, improved consumer sentiment and tactics like extended hours and layaways.

Some 22 major chains, from Macy’s Inc and Target Corp to Costco Wholesale Corp. and Gap Inc. should post an aggregate 4.3 percent increase in December sales at stores open at least a year, according to Thomson Reuters, capping a season that started moderately but gained steam in December.

The top gainers are again expected to be discount chains like Costco, with its cheaper gasoline, and Target as shoppers sought out low prices.

Higher up the price spectrum, chains like Saks Inc., Nordstrom Inc. and Macy’s Inc should also do well, helped by the continued recovery of high end spending and a stock market that rebounded after swooning earlier in the fall.

But chains like J.C. Penney Co. Inc. and Gap, which are under pressure to slash prices to lure price conscious shoppers, are expected to be laggards again after seeing sales declines in November.

Penney sales should be flat, while Gap’s are expected to slip 0.5 percent, hurt by a 3 percent drop at its low-price Old Navy chain, according to Thomson Reuters data.”

Those that have been doing well will continue to do well,” said Richard Hastings, consumer strategist at Global Hunter Securities. “But there were broad-based improvements, so December should lift a few more boats.”

If December sales meet expectations, they would beat December 2010’s 3.1 percent jump.

Early signs showed December was shaping up to be a good month, helped by last minute shopping and strength after Christmas Day. The ICSC/Goldman Sachs weekly chain store sales index rose 4.5 percent during the week ending Dec. 24.The National Retail Federation in mid-December raised its forecast to a 3.8 percent increase for November and December, from 2.8 percent, based in part on a strong start to December.

November same-store sales rose 2.9 percent, according to the Thomson Reuters index, missing analyst forecasts despite a record turnout on Black Friday, the day after Thanksgiving that puts the season into high gear.