TJX’s, Kohl’s same-store sales beat Street in July, Target falls short

New York City Discount retailers, which generally have fared better than other retail segments during the recession, found the going tougher in July. Fewer clearance options due to leaner inventories, cooler weather, the shift of tax-free holidays from July to August, and unemployment concerns were a drag on sales, according to many retailers.

Analysts pointed out that monthly retail sales reports have been less of a barometer of the overall economy since Wal-Mart Stores stopped disclosing its data earlier this year.

Kohl’s Corp, TJX Cos. and Ross Stores reported July same-store sales that topped analysts’ estimates, while Target fell short.

TJX Cos. said Thursday that its same-store sales rose 4% in July, beating Wall Street's expectations. Total sales grew 5% to $1.42 billion for the period ended Aug. 1.

Same-store sales rose 4% in the second quarter and climbed 3% for the year to date. Year-to-date total sales climbed 3% to $9.1 billion.

TJX also said it expects second-quarter outlook earnings from continuing operations to be at the high end of its prior guidance on its continued strong performance and better-than-expected sales and margins.

At Kohl's Corp., July same-store sales rose 0.4%, beating analyst predictions. The retailer also raised its outlook for the second quarter.

Target Corp. said Thursday its same-store sales fell 6.5% in July, a bigger drop than analysts expected. Total sales fell 3% to $4.42 billion during the month.

Healthcare, beauty and food products were the best sellers during July, the company said. Entertainment products and toys were also strong sellers, while electronics were weaker.

Apparel remained a soft spot for Target, with same-store sales down by a percentage in the high single digits. Home products same-store sales fell by a percentage in the low double digits, as back-to-school products sold better than average.

• Ross Stores reported that July same-store sales climbed 4%, beating Wall Street's expectations.

• Fred's said Thursday its same-store sales fell 4.6% in July, as the recession put pressure on its customers.

CEO Bruce Efird called the results "disappointing," saying the company expected flat same-store sales in July.