NEW YORK – July same-store sales generally fell short of expectations as analysts cited increased pressure from rising gas prices, interest rate hikes, and a soft housing market.
Additionally, while July is generally a month not affected by weather trends, analysts said, hotter-than-normal temperatures may have dampened sales of back-to-school merchandise in favor of wear now summer clearance items.
Soft comps lead some retailers to lower their guidance for second quarter earnings. Hot Topic, Pac Sun, Gap and Aeropostale were among the companies that lowered earnings guidance.
Still, there were exceptions. American Eagle fell short of analyst expectations for July sales, posting a 7 percent comp increase, but raised its guidance for the quarter.
Other companies who beat expectations included Children’s Place, which also raised its second quarter guidance, and TJX Cos.
For complete coverage, see tomorrow’s issue of WWD.