Two important industry mall-based retailers reported weak results for July, the start of the back-to-school shopping season.
Zumiez
Zumiez’s same store sales during the month declined 7.6%. In addition to lower than planned sales, the company also experienced pressure on margins as it used promotions to move seasonal merchandise.
Zumiez’s stock is down nearly 11% to $22.69 in trading this morning.
All categories posted negative results, with men’s and accessories the most challenged. Management believes results were negatively impacted by a shift in the timing of tax-free shopping holidays in several states.
While business in North America was difficult, Blue Tomato in Europe continued to “significantly outperform” consolidated results.
Because of the challenges in July, the company lowered its earnings guidance and said earnings per share should come in slightly below the previous projection of 12 cents per share.
Second quarter same store sales declined 4.5% and year-to-date comps are down 0.9%.
Zumiez operates 640 stores in North America and Europe.
The Buckle
The Buckle’s same store sales declined 8.1% in July, and the women’s business was very weak.
Women’s sales, which account for 55% of the retailer’s total sales, dropped 11%. Categories that performed well included casual bottoms, woven tops, dresses and shorts.
Men’s sales rose half a percentage point. Strong categories included casual bottoms, knit shirts, shorts and accessories.
Footwear sales for men and women combined dropped 12%, while accessories sales rose 3%.
The Buckle’s stock is down nearly 7% to $42.28 in trading this morning.
The Buckle operates 464 stores.
