Retail Report Out: Downside Surprise Focused At Upscale/Specialty Stores
Out of the 24 retailers who reported August same store sales results, the surprise split was even with 12 beating estimates, and 12 reporting below estimates. Yet the biggest weakness was seen in the Upscale/Specialty category, where only Nordstrom beat its -9% same store sale estimate marginally, coming out at -7.6%, likely as a result of continued heavy discounting/clearance. The other category names, including Saks, Macy's and Hot Topic all came in well below expectations. Also notable is the lack of color from discount retail bastion WalMart which has stopped reporting monthly same store sales.