Tags: retail | American Eagle | PetSmart | Sears

American Eagle, PetSmart See Sales Drop in Glum Day for Retail

Wednesday, 21 May 2014 10:19 AM

American Eagle Outfitters Inc. announced plans to close an additional 150 stores after posting sluggish sales today, joining a crowd of North American retailers with lower-than-predicted results.

The teen-apparel chain, which is seeking a new chief executive officer, will close the locations over the next three years. Last quarter, sales at stores open at least a year declined 10 percent, worse than the 7.8 percent drop analysts had estimated. Shares of the Pittsburgh-based company fell as much as 4.5 percent in New York trading.

Retailers including PetSmart Inc., Target Corp. and Sears Canada Inc. also reported same-store sales declines today, underscoring the impact of a particularly cold winter and still-shaky consumer confidence. Not all retailers are suffering, though. Tiffany & Co., the luxury-jewelry chain, posted first-quarter profit that beat analysts’ estimates and raised its forecast for the year.

PetSmart, the largest pet-store chain, cut its annual earnings forecast to $4.29 to $4.39 a share, down from a range of as much as $4.54. Comparable-store sales dropped 0.6 percent last quarter, missing the 1.5 percent gain that analysts had estimated. Its stock dropped as much as 8.7 percent to $56.77, marking the worst intraday decline in more than a year.

“We did not achieve our sales goals, which were impacted by a challenging and volatile consumer environment and a competitive market,” David Lenhardt, CEO of Phoenix-based PetSmart, said in a statement.

Frostbitten Sales

At Sears Canada, a department-store chain that’s majority-owned by Sears Holdings Corp., its quarterly net loss widened to C$75.2 million ($69 million), or 74 cents a share, from C$31.2 million, or 31 cents, a year earlier. Sales fell 11 percent to C$771.7 million.

The business’s struggles have prompted its U.S. parent to consider a sale or spinoff of its remaining 51 percent stake. Sears Holdings, run by hedge-fund manager Eddie Lampert, said last week that it will hire an investment bank to study options for the Canadian operation, which has a total market value of about $1.4 billion.

In the most recent quarter, a late spring took a toll on sales, Sears Canada CEO Douglas Campbell said today.

“Sales of spring merchandise were below last year, as winter-like weather was prevalent in most parts of the country well into the new season,” he said in a statement.

© Copyright 2017 Bloomberg News. All rights reserved.

   
1Like our page
2Share
Companies
American Eagle Outfitters Inc. announced plans to close an additional 150 stores after posting sluggish sales today, joining a crowd of North American retailers with lower-than-predicted results.
retail, American Eagle, PetSmart, Sears
379
2014-19-21
Wednesday, 21 May 2014 10:19 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved