Clothing retailer Limited Brands Inc. said Thursday its same-store sales tumbled 9 percent in June _ further than expected _ reflecting the absence of Express and Limited Stores sales results.
Analysts polled by Thomson Financial, on average, expected same-store sales to decline just 7.4 percent.
Same-store sales, or sales at stores open at least a year, is a key indicator of retailer performance since it measures growth at existing stores rather than newly opened ones.
Year-ago results included Express sales through July 6, 2007, the closing date of the sale of a majority stake to affiliates of Golden Gate Capital. They also included Limited Stores sales through Aug. 3, 2007, the closing of the transfer of a majority interest to Sun Capital Partners affiliates.
Total sales for the five-week period ended July 5 fell 15 percent to $1.02 billion.
Victoria's Secret Stores same-store sales tumbled 12 percent in June, widely missing analysts' estimate for a 4.9 percent decline. Sales were negatively impacted by the beauty business, which offered fewer promotions than last year, the company said. Additionally, the merchandise margin rate was up significantly in June due to lower seasonal inventory clearance during the company's semiannual sale.
However, Bath & Body Works same-store sales fell just 8 percent, better than analysts' forecast of a 12.4 percent decline. The company said weak traffic hurt results.
Same-store sales for the 22 weeks ended July 5 fell 8 percent, while total sales dropped 16 percent to $3.61 billion.
Limited Brands, which is planning the launch of a Pink collegiate collection and body care line, expects a mid- to high-single digit decline in same-store sales in July.
Limited Brands, which operates Victoria's Secret, Pink, Bath & Body Works, C.O. Bigelow, La Senza, White Barn Candle Co. and Henri Bendel, currently operates 2,987 specialty stores.
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