Tough going for three specialty retailers

L Brands, The Cato Corp., and The Buckle reported decreases in same-store sales, although one still managed to sound an upbeat note about its second quarter.



L Brands, parent company of Victoria's Secret, reported net sales of $767.7 million for the four weeks ended July 29, 2017, down from $777 in the year-ago period. Total same-store sales fell 7%. Same-store sales fell 10% at Victoria’s Secret and rose 1% t at Bath & Body Works. The retailer said its decision to exit the swim and apparel categories had a negative impact of about 4 percentage points and 5 percentage points to total company and Victoria’s Secret comparable sales, respectively.



L Brands said it expects second-quarter profit at the high end of its previous forecast range of 40 cents to 45 cents per share.



L Brands, through Victoria’s Secret, PINK, Bath & Body Works, La Senza and Henri Bendel, is an international company. The company operates 3,077 company-owned specialty stores in the United States, Canada, the United Kingdom and Greater China



The Cato Corporation reported sales of $56.1 million for July, down 8% from the year-ago period. Same-store sales for the month were down 9% to the prior year.



Sales for the second quarter ended July 29, 2017 fell 13% to $205 million. Second quarter same-store sales were down 14% to prior year.



"Our negative sales trends persisted in July and the decline in sales continues to put severe pressure on merchandise margins and profitability," commented John Cato, chairman, president, and CEO.



We expect a loss for the second quarter and full year earnings to be significantly below last year.



The Cato Corporation operated 1,374 stores in 33 states, compared to 1,373 stores in 33 states as of July 30, 2016.



At The Buckle, same-store sales in July decreased 8.4%. Net sales decreased 9%.



Comparable store net sales for the 13-week second quarter ended July 29, 2017 decreased 7.7%. Net sales for the quarter fell 7.8% to $195.7.



The Buckle currently operates 463 retail stores in 44 states, which includes the opening of one new store during fiscal July in Sparks, Nevada.