US Retailers deliver steady August sales
However, the outlook for consumer spending in the coming months is uncertain, with the aftermath of Hurricane Katrina and higher energy prices expected to take a toll on the economy.
Warehouse clubs such as Costco Wholesale Corp, teen retailers such as Wet Seal, moderate-priced department stores such as J.C. Penney Co, Kohl’s Corp and merchants such as Nordstrom Inc all delivered positive results.
Wal-Mart Stores sales came in slightly below analysts’ estimates as low-income shoppers are affected by the rising energy costs. It also warned that the impact of the hurricane and higher oil prices could weaken September sales.
Wal-Mart reported same-store sales were up 3.3 per cent. Total sales rose 10 per cent.
The retailer also forecast a same-store sales gain in September of 2 per cent to 4 per cent but said that pace could be weaker because of Katrina and higher energy prices. Wal-Mart averaged a 3.5 perc ent gain in the first six months of its fiscal year.
Wal-Mart said it had about 126 facilities impacted initially by the hurricane, but has reopened 80, leaving about 1 per cent of its U.S. locations closed.
Rival Target Corp, posted a 6.3 per cent gain in same-store sales, beating the 5.4 per cent estimate from analysts. Total sales rose 12.2 per cent.
