Dept. store sales mixed in October

CINCINNATI, Ohio, MENOMONEE FALLS, Wis and PLANO, Tex. Macy’s, Kohl's JCPenney report mixed sales for the month of October.

Macy’s reported total sales of $1.69 billion for the four weeks ended Oct. 31, a decrease of 1.3% compared with total sales of $1.71 billion in the four weeks ended Nov. 1 the year prior. On a same-store basis, Macy’s sales were down 0.8% in October.

Kohl’s reported that total sales for the four-week month ended Oct. 31 increased 4.9% from the four-week month ended Nov. 1 the year prior. On a comparable-store basis, sales increased 1.4% for the month of October.

As a result of October’s sales performance and strong inventory and expense management, the company is raising its third quarter earnings per share guidance to 60 cents to 61 cents per diluted share from 52 cents to 54 cents per diluted share. Last year’s third quarter earnings were 52 cents per diluted share.

JCPenney reported that comparable-store sales for the four-week period ended Oct. 31, decreased 4.5%, slightly better than the company’s guidance for sales to decrease 5 to 8%. In last year’s October period, comparable-store sales decreased 13%. Total company sales in October decreased 3.5%.

Management’s guidance for the four-week period ending Nov. 28 is for a 4 to 7% decrease in comparable-store sales, compared with an 11.9% decrease in last year’s November period.

Management now expects third quarter earnings to be in the range of 10 cents to 11 cents per share, including a charge of approximately 3 cents per share, primarily related to non-recurring real estate impairments. The company’s most recent guidance was for third quarter earnings to be in the range of 3 cents to 10 cents per share.