The unusually cold and wintry weather in February and March gets a good deal of the blame. But intense price competition and less discretionary income for lower- and middle-income consumers contributed to the slide as well.
For the 87 chains that have reported results so far, earnings are down 4.5%, or 4% excluding giant retailer Wal-Mart Stores Inc. (NYSE: WMT). Retail Metrics had forecast a total decline to 1.1%. Retailers’ revenues are up 3.1% on a reported basis and are projected to rise 3.2% on a blended basis.
Department stores are the worst performing subgroup. Sears Holdings Corp. (NASDAQ: SHLD) posted an earnings per share loss of $2.24, far worse than expected, and there is little reason to believe the company will ever turn around. According to Retail Metrics, the department store group’s first-quarter earnings are down 252%.
ALSO READ: America’s Most Popular Stores
Another poorly performing group is the teen retailers, down 118%. That is not good, but it is better than expected, primarily due to the not-as-awful-as-expected results from Aeropostale Inc. (NYSE: ARO). The company’s results were bad enough to drum 25% of the value out of the stock, but that was better than analysts thought it would be.
There are 15 retailers scheduled to release earnings next week, including Michael Kors Holdings Ltd. (NYSE: KORS), which reports results on Wednesday. Retail Metrics expects it to post EPS of $0.68 on revenues of $816.51 million. Same-store sales are projected to rise 20.1%.
Big Lots Inc. (NYSE: BIG) reports results next Friday, and Retail Metrics is looking for EPS of $0.44 on revenues of $1.27 billion. Same-store sales at the discounter are expected to decline by 0.3%.
ALSO READ: Nine Companies With the Most Unusual Origins
The #1 Thing to Do Before You Claim Social Security (Sponsor)
Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.
A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.
Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.