Wal-Mart Stores Inc.
(NYSE:WMT) announced its same-store sales dropped 3.5% this month,
which was by far the worst since it began reporting monthly sales 28
years ago. Excuses from the company included bad weather, an early
Easter and near-record gasoline prices that collectively put a huge
damper on consumer spending at the world's largest retailer.
Five
other retailers also cut their fiscal first-quarter earnings forecasts
after reporting similar drops in same-store sales figures. These
included Sage Stores, Pacific Sunwear of California, Children's Place
Retail Stores, Cato, and New York & Co. Meanwhile, Ambercrombie
& Fitch and Aeropostale saw similar slides around 15% in same-store
sales, which indicates that the trends are affecting high-end fashion
retailers as well.
Same-store sales are considered one of the
best indicators of consumer spending strength, brand recognition and
other factors affecting a retailers' net income. For more information
on how to analyze retailers using this metric, see our article
How to Analyze the Retail Industry.
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