Retailers report mixed sales heading into holidays

Shoppers who continue to be weighed down by the weak economy slowed their spending in October, according to monthly revenue results reported by retailers today. That’s a bad sign for merchants as they head into the winter holiday shopping season. Eleven retailers missed expectations for revenue at stores open at least a year—an indicator of a retailer’s health—while three merchants beat estimates, according to a preliminary tally by Thomson Reuters. Although the results in October weren’t as promising as retailers had hoped, most retailers reported results that were only slightly off from Wall Street estimates. Costco revenue at stores open at least a year climbed 9% in October, for instance. That was down slightly from the 9.2% increase analysts surveyed by Thomson Reuters had predicted. And Limited Brands said revenue at stores open at least a year rose 6% in October, roughly in line with analysts’ estimates of 6.2%. Other merchants, however, reported much more disappointing results. Macy’s posted a 2.2% increase in revenue at stores open at least a year, which was below the 3.6% increase that Wall Street analysts had expected. JC Penney reported sales declined by 2.6% in October, rather than increasing by 1% increase, as Wall Street had expected. Luxury retailers, which had benefited from brisk spending by their well-heeled shoppers, also showed weakness in October. Saks had a 1.8% increase, much lower than the 5.4% gain that analysts had forecast. Nordstrom had a 5.4% increase, below the 6.4% gain that Wall Street expected.