Same Store Sales

Best Buy Co., the largest U.S. consumer-electronics chain, said December sales growth at stores open at least 14 months grew at the slowest pace in five years, sending the shares down the most since June. So-called same-store sales rose 1.5%, the smallest increase since the 0.4% gain in December 2002. In the year-earlier period, sales climbed 7%. December sales results from electronics retailers are an indicator of how they fared in the fourth quarter, when most of their annual profits are earned.

Taco Bell may still be having a rough time at home, but its parent, Yum Brands Inc., is riding high — and it has China to thank. Yum, which also owns Pizza Hut and KFC, reported a 30% jump in fourth-quarter net income largely because of explosive growth abroad. The Louisville, Ky., company said it earned $356 million in the period, compared with $274 million a year earlier. Revenue was up 15% to $4.1 billion for the quarter. Net income for the year that ended Dec. 31 rose 14% to $1.3 billion.

Consumer spending and confidence may be waning, but people still need that jolt of morning caffeine to wash down an egg sandwich. McDonald's Corp.'s big push on coffee and new breakfast items in its U.S. restaurants contributed to a double-digit jump last month in sales at stores open at least 13 months, accompanying even stronger growth in Europe, the company said Monday. The world's biggest fast-food chain reported that so-called same-store sales climbed 11.7% over a year earlier -- evidence that the economic slowdown hasn't dealt it the blow that some investors had earlier feared.

Despite a rise in its second-quarter profit, Wal-Mart Stores Inc. continued to struggle with an important measure of U.S. sales as its core low-income customers worried about job security, rising costs and their finances. For the three months ended July 31, the nation's largest retailer reported profit of $3.8 billion, or $1.09 a share, a penny better than expected and up 5.7% from $3.6 billion, or 97 cents, a year earlier. Although the discount giant performed well internationally, its U.S. business remained weak as shoppers spent frugally, especially on discretionary items, amid a sluggish economy.

Wal-Mart Stores Inc.'s first-quarter profit rose more than expected, but an important measure of U.S. sales fell again and the discount giant issued a muted outlook for the second quarter. "A number of economic pressures, including gas prices and ongoing concerns about unemployment, continue to affect key segments of retail," Chief Executive Mike Duke said in an earnings call. "And this is especially true for Wal-Mart's core customer." For the three months ended April 30, profit at the world's largest retailer totaled $3.32 billion, or 88 cents a share, a 10% increase from $3.02 billion, or 77 cents, in the year-earlier quarter.

Down an alley from a KFC, McDonald's and Pizza Hut in Shanghai, Li Hong sat inside a dingy little storefront that serves full-course dinners for a dollar. Her tray was filled with cabbage, carrots, potatoes, a chicken leg and rice, plus soup. A Western fast-food meal would have cost her three times that much, said the young woman, who works as a sales clerk. "Why should I go there?" she said. In the U.S., fast-food chains often thrive in tough times. But not so in China, where Western quick-service food isn't the cheapest stuff in town and, in target markets like Shanghai, there's too much competition.

Teen specialty retailer Hot Topic Inc. said its first-quarter loss widened on a drop in same-store sales. For the quarter ended May 3, Hot Topic posted a loss of $1.4 million, or 3 cents a share, compared with a loss of $809,000, or 2 cents, a year earlier. Sales rose 1.1% to $159 million. The recent quarter's results included a penny a share in expenses related to the company's online music initiative. Analysts polled by Thomson Financial expected a loss of 4 cents a share on $159.

J.C. Penney Co. reported a 36% drop in second-quarter profit and issued a downbeat outlook for the current quarter as shoppers cut back on clothing spending in a tough economy. The Plano, Texas-based department store chain said it earned $117 million, or 52 cents a share, compared with $182 million, or 81 cents, a year earlier. Sales fell 2.5% to $4.28 billion. Same-store sales, or sales at stores opened at least a year, fell 4.3%. Same-store sales are considered a key indicator of a retailer's health.

Kohl's Corp., the mid-priced department store chain that has been aggressively grabbing market share, and apparel retailer Gap Inc., which is in the midst of a turnaround, both reported strong sales as well as double-digit profit gains for the fourth quarter. For the three months that ended Jan. 30, Kohl's profit increased 28% to $431 million, or $1.40 a share, compared with $336 million, or $1.10, in the year-earlier quarter, the company said Thursday. Total sales increased 8.5% to $5.7 billion, and sales at stores open at least a year -- known as same-store sales and considered an important measure of a retailer's health -- increased 4.5%.

Sales of new espresso-based coffee drinks and chicken Snack Wraps helped boost McDonald's Corp.'s global sales by 6.9% in April. Same-store sales, or sales in stores open at least 13 months at the chain, rose 6.1% in the U.S. The increase comes even as the recession keeps consumers from spending on meals out. McDonald's has benefited from consumers' desire to save cash because its meals are typically less expensive than those at sit-down chains....

The start of summer break sent teens and other shoppers to the mall in June, but sales remained lackluster at many of the nation's largest retailers. Major chain stores posted a 3.1% sales increase last month compared with a year earlier, according to Thomson Reuters' tally of 28 retailers released Thursday. Those results fell slightly short of expectations. Yet perhaps more disconcerting, the results suggested that while the nation's retail recovery continues, the pace has slowed since the first quarter.

Traffic and sales at the nation's restaurants slipped in May for the second straight month, putting a squeeze on profits as costs of food supplies rose, according to the National Restaurant Assn. About 46% of restaurant owners said their same-store sales had declined in May, an increase from 41% who said business had declined in April, according to monthly data released Wednesday by the restaurant group. About 43% said fewer customers had come in to eat, up from 39% in April. Still, many restaurant owners had made improvements to their facilities in May, including remodeling and buying new equipment, said analyst Hudson Riehle, the trade group's senior vice president.

Problems are mounting for American Apparel Inc., the popular Los Angeles apparel maker and retailer that has been plagued by debt constraints and weak sales since last year. On Wednesday, the company reported disappointing first-quarter preliminary results and said it expected problems with its debt, sending its shares plummeting 41% to its lowest price in more than a year. It also declined to provide a financial outlook for the year because of continued uncertainty about its business.

Wal-Mart Stores Inc.'s first-quarter profit rose more than expected, but an important measure of U.S. sales fell again and the discount giant issued a muted outlook for the second quarter. "A number of economic pressures, including gas prices and ongoing concerns about unemployment, continue to affect key segments of retail," Chief Executive Mike Duke said in an earnings call. "And this is especially true for Wal-Mart's core customer." For the three months ended April 30, profit at the world's largest retailer totaled $3.32 billion, or 88 cents a share, a 10% increase from $3.02 billion, or 77 cents, in the year-earlier quarter.

Department store giant Macy's Inc. said Wednesday that it swung to a better-than-expected profit in its first quarter thanks to strong sales in stores and online, better inventory control and an overhaul of its merchandise strategy. For the three months ended May 1, the Cincinnati chain reported profit of $23 million, or 5 cents a share, compared with a loss of $88 million, or 16 cents, in the year-earlier period. In the rapidly growing online sector, sales at Macys.com and Bloomingdales.

Kohl's Corp., the mid-priced department store chain that has been aggressively grabbing market share, and apparel retailer Gap Inc., which is in the midst of a turnaround, both reported strong sales as well as double-digit profit gains for the fourth quarter. For the three months that ended Jan. 30, Kohl's profit increased 28% to $431 million, or $1.40 a share, compared with $336 million, or $1.10, in the year-earlier quarter, the company said Thursday. Total sales increased 8.5% to $5.7 billion, and sales at stores open at least a year -- known as same-store sales and considered an important measure of a retailer's health -- increased 4.5%.

Casual-dining chain Cheesecake Factory Inc. said its second-quarter profit dropped 19%, hurt by a steep climb in expenses, a drop in interest income and declining same-store sales. Net income slipped to $19.1 million, or 29 cents a share, from $23.7 million, or 33 cents, a year earlier. Sales jumped 9% to $407.1 million. The revenue increase came mainly from new stores. Same-store sales, or sales at locations open at least a year, dropped 4.1% in the quarter, the Calabasas Hills company said.

McDonald's Corp., the world's largest restaurant company, said quarterly profit growth slowed and December's U.S. same-store sales were unchanged, the worst monthly result in almost five years. McDonald's, based in Oak Brook, Ill., said fourth-quarter net income was $1.27 billion, or $1.06 a share, compared with $1.24 billion, or $1, a year earlier. Quarterly sales rose 6% to $5.75 billion. Same-store sales, a key performance measure, rose 3.3% in the quarter in the U.S. but were flat for the last month, which concerned traders.

Three of the nation's largest retailers saw earnings rise significantly in the fourth quarter and said Tuesday that they expected continued improvement this year even against a slow industry recovery. For the quarter ended Jan. 30, department store giant Macy's Inc. swung to a $466-million profit after losing billions of dollars in the year-earlier period; discounter Target Corp. said net income increased 54%; and Sears Holdings Corp. posted its best quarterly earnings in three years.