NEW YORK — Several of the nation’s largest retailers cut their earnings forecasts Thursday after lingering summer weather and an uncertain economy kept consumers from shopping last month and left the big merchants with disappointing sales.
As the store owners reported September sales figures Thursday, the biggest losers were apparel sellers including Limited Brands Inc. and Gap Inc.
Target Corp., J.C. Penney Co., Limited Brands Inc. and Nordstrom Inc. were among those lowering their earnings outlooks.
Wal-Mart Stores Inc. posted a modest sales gain that was slightly below analysts’ expectations, but raised its third-quarter profit outlook because of cost-cutting.
“Sales are coming in soft, as expected,” said Ken Perkins, president of RetailMetrics LLC, a research company in Swampscott, Mass. “It was a perfect storm, a combination of abnormally warm weather, high food and energy prices, a continued sluggish housing marketing and tight credit.”
Perkins added that if sales don’t pick up, stores will be forced to slash prices to get rid of inventory and make room for holiday merchandise that will start to flow into stores this month.
The news wasn’t encouraging as the holiday season fast approaches.
Michael Niemira, chief economist at the International Council of Shopping Centers, estimated the unseasonably warm weather around much of the nation depressed sales results by five-tenths of a percentage point.
The ICSC-UBS tally of retail sales rose a slim 1.7 percent in September, compared to 4.0 percent in the year-ago period and forecast for a 2.5 percent gain. Excluding the impact of the weather, the results were in line with a 2.3 percent spending pace seen since February, the start of the fiscal year for merchants.
The sales tally is based on same-store sales, or business at stores open at least a year, considered a key barometer of a retailer’s health.
Nordstrom Inc. had a 3.2 percent gain, below the 5.0 percent estimate. The company lowered its third-quarter profit outlook as a result of disappointing sales. It also said larger-than-planned markdowns used to clear excess inventory will hurt profits for the remainder of the year.
Wal-Mart reported a 1.4 percent increase in same-store sales, slightly below the 1.8 percent estimate from analysts surveyed by Thomson Financial.
The company said apparel and home furnishings remain weak, and that company research continue to show that customers remain concerned about their finances, particularly the cost of living.
But the discounter raised its profit outlook to a range of 66 cents to 69 cents from its previous 62 cents to 65 cents due to cost cutting.
Target said same-store sales increased a slim 1.2 percent, burdened by weak apparel sales. Analysts had estimated a 2.2 percent increase. The company said it believes its full-year earnings per share results will be below $3.60. The firm previously said it expected to earn “slightly more or slightly less” than that amount.
Macy’s Inc. posted a 2.7 percent drop in same-store sales, worse than the 1 percent projection. In a statement, Terry Lundgren, chairman, president and CEO, said sales were depressed from the year-ago period that benefited from the major launch of more than 400 former May stores to the Macy’s nameplate. He also blamed warm weather for hurting sales.
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