any of the nation's retailers struggled with a sluggish start to the back-to-school season, though Wal-Mart posted higher August sales Thursday as shoppers focused on buying essentials amid persistent worries about high gas and food prices.
As merchants announced their August sales results, Wal-Mart Stores Inc., the world's largest retailer, reported a solid sales gain that beat Wall Street forecasts as it benefits from consumers sticking to low-price operators. But mall-based apparel stores and departments stores such as Stage Stores Inc. and Limited Brands Inc. remained in the doldrums.
"Consumers are spending on necessities and looking for value and the lowest-price possible. And it's reflective again in the results that we are seeing," said Ken Perkins, president of research company RetailMetrics LLC.
According to a preliminary tally by Thomson Reuters, nine retailers missed expectations, while eight merchants beat estimates. The tally is based on same-store sales, or sales at stores opened at least a year, which are a key indicator of a retailer's health.
Wal-Mart said that sales of groceries and back-to-school products helped its August same-store sales rise 3 percent. Analysts surveyed by Thomson Reuters had expected a 1.6 percent increase. Including fuel, the retailer's total same-store sales rose 3.5 percent.
Limited Brands Inc., the operator of Victoria's Secret and Bath & Body Works, suffered a 7 percent drop, in line with the 6.9 percent decline estimated from Wall Street.
Clothing and accessories retailer Stage Stores recorded an 8.3 percent drop in August. Analysts polled by Thomson Reuters expected a same-store sales drop of 1.7 percent.
9/3/2008 4:03 PM
By JENNIFER LOVEN
Associated Press Writer
WASHINGTON
any of the nation's retailers struggled with a sluggish start to the back-to-school season, though Wal-Mart posted higher August sales Thursday as shoppers focused on buying essentials amid persistent worries about high gas and food prices.
