Same Store Sales

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.

Macy's Inc. posted lower second-quarter profit Wednesday and warned that its full-year earnings would be below expectations. Macy's earned $73 million, or 17 cents a share, in the quarter that ended Aug. 2, compared with $74 million, or 16 cents, a year earlier. Excluding two one-time items, Macy's earned 29 cents a share from continuing operations. Analysts surveyed by Thomson Reuters had expected earnings of 19 cents a share on revenue of $5.75 billion. Revenue fell 3% to $5.7 billion, while same-store sales, or sales at stores open at least a year, dropped 2.1%.

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.

Higher gasoline sales and a boost from its more upscale stores helped grocer Safeway Inc. post higher second-quarter earnings Thursday, but a downbeat outlook caused by reduced consumer spending sent its shares tumbling more than 10%. The nation's second-largest grocer, which owns Vons, said that cutting costs and revising its retail strategy helped it to report the higher earnings, which beat Wall Street expectations. Chief Executive Steve Burd said Safeway had a very strong quarter but acknowledged that the economy and its effect on shoppers' spending habits made for soft same-store sales.

Fast-food chain operator CKE Restaurants Inc. said its fiscal first-quarter profit rose 8%, helped by an increase in same-store sales at Carl's Jr. restaurants and a lower share count. For the quarter ended May 19, net income rose to $16.6 million, or 31 cents a share, from $15.4 million, or 23 cents, a year earlier. Analysts polled by Thomson Financial expected profit of 27 cents a share. The Carpenteria, Calif., company said the 2009 per-share result was based on 13.9 million fewer shares outstanding.

Shares of Pier 1 Imports Inc., the biggest U.S. retailer of imported furniture, fell 20% after it reported a fiscal first-quarter loss that was wider than analysts had predicted. The net loss was $32.8 million, or 37 cents a share, compared with a loss of $56.4 million, or 64 cents, a year earlier, Fort Worth-based Pier 1 said. Analysts surveyed by Bloomberg predicted an average loss of 15 cents. Sales fell 13% to $310 million, while same-store sales declined 5.4%. Pier 1 shares fell $1.23 to $5.01.

Battered retailer Sears Holdings Corp. posted its largest quarterly loss Thursday since Sears and Kmart combined three years ago, providing surprising results far below Wall Street forecasts. The company said it lost $56 million, or 43 cents a share, in its first quarter as it fought for shoppers and cut prices to clear merchandise from store floors. That is a dramatic reversal from the retailer's year-earlier profit of $223 million, or $1.45 a share. "It was a pretty ugly quarter," said Morningstar analyst Kim Picciola.

Costco Wholesale Corp. reported a 32% jump in its fiscal third-quarter profit Thursday, topping Wall Street expectations, as cash-squeezed customers flocked to its warehouse clubs in search of bargains on food and toiletries. But Costco shares edged down 26 cents to $72.98 after the company said Wall Street's forecast for the fourth quarter might be too high. Costco said net income in the three months that ended May 11 rose to $295.1 million, or 67 cents a share, from $224 million, or 49 cents, a year earlier, which included a $30.3-million charge.

Apparel retailer Wet Seal Inc. said its fiscal first-quarter profit jumped 18% as sales at newer stores and lower expenses helped offset a decline in same-store sales. Foothill Ranch-based Wet Seal's net income climbed to $8.9 million, or 9 cents a share, from $7.6 million, or 7 cents, a year earlier. Revenue rose 3% to $142.4 million. Analysts expected profit of 7 cents a share on revenue of $141.8 million.

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.