Stats Canada posted May retail results which were up 4% over LY, excluding motor vehicles and parts and gasoline stores.
Food & Beverage stores were flat. Sporting Goods stores were up 5.7%. Building Materials & Garden stores +12.2%. General Merchandise stores + 3.6%. Health & Personal Care stores +4.6%.
Clothing & Accessories stores +4.3%. Before you get too excited, the increase was mainly from Jewellery & Luggage which were up 25.9%. Clothing stores were only up 1.3% and Footwear +6%.
If you are wondering what everyone is spending their money on, it`s Vehicles & Parts, sales were up 14%. Gasoline, sales were up 11.5%. Not to mention mortgages and hydro.
Canada Goose, Canadian Tire, Macy`s, Kohl`s, Dillards and Nordstrom all posted results today for Q2. It was a mixed bag, although the 2 Canadian companies reporting had good results. . Here is a brief recap.
Canada Goose shares rose with the excellent results. Retail sales $8.3m (stores and on-line). Wholesale sales $19.9m, up 38.2%. Continuing made in Canada with 5 factories including one in Quebec. Opening stores in London, Chicago, Calgary, Tokyo. The market responded with higher stock prices. They are shipping fall with many customers wanting product earlier than ordered.
Canadian Tire shares also rose based on a strong Q2. Results were better than expected even with the cooler weather. Revenue was up 8.8% over LY with comp sales +1.8%. Comp sales increases by banner were Canadian Tire +1.4%, FGL Sports +2.6% and Marks +4%. FGL Sports was below the annual +9% target. Profit was higher than anticipated, up 60 basis points over LY. This was due to improvements n sourcing and incremental penetration of private brands which accounted for 30% of the revenue, up 8% over LY. They credited their good results to a strategy of diversified assortments and using new technology to mine customer data to target effective promotions. They have also launched Atlas with AI to improve customer’s searches on line.
Nordstrom also had a good Q2, achieving targets with net sales +3.5% to LY and comp sales +1.7%. The increased were generated by product newness selling at regular price, improved loyalty program and a strong Anniversary Sale. Nordstrom full line stores were up 2.4%, comp+1.4% (including Canada). Nordstrom rack stores were up 9.8%, comp +3.1. GP for the quarter dropped 25 basis points from LY due to new store and loyalty expenses. Merchandise profit was up over last year due to higher regular sales.
Macy`s sales were better than analyst expectations and in line with their projections. Total sales of $4.55b were down 5.4% to LY. Comp store sales were down 2.5% mainly due to weaker international tourist sales (down 9%). Key strategic Merchandise initiatives are starting to pay off. Shoes were up mid-single digits and Fine Jewellery up double digits. Backstage tests in 38 stores generated 6% incremental sales. Fragrances, active apparel and men`s tailored clothing were all up in the quarter. Digital sales were up double digit with the new mobile app. Inventory is 3% lower than LY comp. Beauty and housewares continue under ``pressure``. The market didn`t like these results and stocks dropped during the day.
Kohl`s sales for Q2 were down 0.9% to LY, comp sales were down 0.4%. This was well received as it`s a good improvement over recent results. On line sales were up 19% attributed to an improved mobile app that drove 66% of the on-line traffic. GM was 39.4%, down 6 basis points to LY due to digital growth. Merchandise GM was improved due to an increase in regular sales increased while clearance sales declined. Expenses were down slightly as planned and Inventories were down $75.0M or 2%. Strong businesses included home, men`s apparel and active apparel and footwear.
Dillards Q2 missed estimates and the stock price dropped today. Sales of $1.427B were down 1%. Merchandise Margins were down 235 basis points due to higher MD`s to clear high inventories. The Net loss for the quarter was $17.1M compared to net income LY of $12.1M. Strengths were in women`s apparel where sales were up slightly. Below trend were cosmetics, shoes and home.
Food & Beverage stores were flat. Sporting Goods stores were up 5.7%. Building Materials & Garden stores +12.2%. General Merchandise stores + 3.6%. Health & Personal Care stores +4.6%.
Clothing & Accessories stores +4.3%. Before you get too excited, the increase was mainly from Jewellery & Luggage which were up 25.9%. Clothing stores were only up 1.3% and Footwear +6%.
If you are wondering what everyone is spending their money on, it`s Vehicles & Parts, sales were up 14%. Gasoline, sales were up 11.5%. Not to mention mortgages and hydro.
Canada Goose, Canadian Tire, Macy`s, Kohl`s, Dillards and Nordstrom all posted results today for Q2. It was a mixed bag, although the 2 Canadian companies reporting had good results. . Here is a brief recap.
Canada Goose shares rose with the excellent results. Retail sales $8.3m (stores and on-line). Wholesale sales $19.9m, up 38.2%. Continuing made in Canada with 5 factories including one in Quebec. Opening stores in London, Chicago, Calgary, Tokyo. The market responded with higher stock prices. They are shipping fall with many customers wanting product earlier than ordered.
Canadian Tire shares also rose based on a strong Q2. Results were better than expected even with the cooler weather. Revenue was up 8.8% over LY with comp sales +1.8%. Comp sales increases by banner were Canadian Tire +1.4%, FGL Sports +2.6% and Marks +4%. FGL Sports was below the annual +9% target. Profit was higher than anticipated, up 60 basis points over LY. This was due to improvements n sourcing and incremental penetration of private brands which accounted for 30% of the revenue, up 8% over LY. They credited their good results to a strategy of diversified assortments and using new technology to mine customer data to target effective promotions. They have also launched Atlas with AI to improve customer’s searches on line.
Nordstrom also had a good Q2, achieving targets with net sales +3.5% to LY and comp sales +1.7%. The increased were generated by product newness selling at regular price, improved loyalty program and a strong Anniversary Sale. Nordstrom full line stores were up 2.4%, comp+1.4% (including Canada). Nordstrom rack stores were up 9.8%, comp +3.1. GP for the quarter dropped 25 basis points from LY due to new store and loyalty expenses. Merchandise profit was up over last year due to higher regular sales.
Macy`s sales were better than analyst expectations and in line with their projections. Total sales of $4.55b were down 5.4% to LY. Comp store sales were down 2.5% mainly due to weaker international tourist sales (down 9%). Key strategic Merchandise initiatives are starting to pay off. Shoes were up mid-single digits and Fine Jewellery up double digits. Backstage tests in 38 stores generated 6% incremental sales. Fragrances, active apparel and men`s tailored clothing were all up in the quarter. Digital sales were up double digit with the new mobile app. Inventory is 3% lower than LY comp. Beauty and housewares continue under ``pressure``. The market didn`t like these results and stocks dropped during the day.
Kohl`s sales for Q2 were down 0.9% to LY, comp sales were down 0.4%. This was well received as it`s a good improvement over recent results. On line sales were up 19% attributed to an improved mobile app that drove 66% of the on-line traffic. GM was 39.4%, down 6 basis points to LY due to digital growth. Merchandise GM was improved due to an increase in regular sales increased while clearance sales declined. Expenses were down slightly as planned and Inventories were down $75.0M or 2%. Strong businesses included home, men`s apparel and active apparel and footwear.
Dillards Q2 missed estimates and the stock price dropped today. Sales of $1.427B were down 1%. Merchandise Margins were down 235 basis points due to higher MD`s to clear high inventories. The Net loss for the quarter was $17.1M compared to net income LY of $12.1M. Strengths were in women`s apparel where sales were up slightly. Below trend were cosmetics, shoes and home.
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