U.S. retailers’ year-end sales results a mixed bag
So far, it’s looking like Santa delivered a mixed bag to retailers this holiday season.
The final months of the year gave gifts to American Eagle and J.C. Penney. But Gap, Urban Outfitters and Macy’s were left with a lump of coal.
Gap shares fell on Friday after the retailer announced that same-store sales dropped 5 per cent in the fiveweek period ended Jan. 2. That compares to a 1-per-cent increase in the corresponding period a year ago. Sales were dragged down particularly by poor showings from Banana Republic and Old Navy, where sales fell 9 per cent and 7 per cent, respectively.
Old Navy has typically been Gap’s strongest brand, but may have been the most affected by warm weather, according to a note from financial services firm Cowen Group. Urban Outfitters’ eponymous brand and its Anthropologie brand also both saw sales fall in November and December, bringing comparable sales for the company down 2 per cent. The results provide an early look at a holiday season that wasn’t expected to post as much sales growth as last year — the American National Retail Federation predicted a 3.7-per-cent sales increase, down from a 4.1-per-cent increase in 2014.
Overall results are “generally better than relatively low expectations,” said Ken Perkins, president of research and data firm Retail Metrics.
Meanwhile, American Eagle Outfitters said Friday that comparable sales have increased 4 per cent in the fourth quarter to date, citing a strong showing online and the effect of omnichannel initiatives on the customer experience.