Hot Summer

As summer comes to an end, many retailers are reporting positive sales growth for the month of August.

Target Corp. (Minneapolis) announced its net retail sales from continuing operations (principally Target Stores) increased 12 percent to $3.862 billion for the four weeks ended August 27, 2005. Comparable-store sales increased 6.3 percent. “Our same-store sales growth in the month of August was slightly above our planned range for the month,” said Target chairman and ceo Bob Ulrich.

Following the announcement of its completed merger with The May Department Store Co., Federated Department Stores Inc. (Cincinnati) reported total sales of $1.069 billion for the four weeks ended August 27, 2005, an increase of 1.3 percent compared to the same period last year. Same-store sales increased 1.1 percent.

Terry Lundgren, Federated's chairman, president and ceo, said that, while the company looks forward to positive business trends in the fall season, August sales were below expectations, due in part to Hurricane Katrina's negative impact on stores in Florida and Louisiana.

While not part of Federated in August, sales for May Co. during the month totaled $1.027 billion, compared with $1.054 billion last year. On a same-store basis, May Co.'s August sales decreased by 2.8 percent. Beginning in September, Federated will report total store sales, including May Co. Comp stores sales will include Macy's and Bloomingdale's locations open for more than one year.

Luxury department store retailer Nordstrom Inc. (Seattle) said its August preliminary sales increased 9.5 percent compared to the same four-week period last year. Same-store sales increased 8 percent. The company will open two new stores this month, in The Shops at La Cantera in San Antonio, Texas, and at The Irvine Spectrum in Irvine, Calif.

Gap Inc. (San Francisco) announced its net sales decreased 5 percent to $1.17 billion for the four-week period ended August 27, 2005, compared with net sales of $1.23 billion for the same period last year. The company's comparable store sales for August 2005 decreased 9 percent.

Comparable store sales by division for August 2005 were: Gap North America, decreased 7 percent; Banana Republic North America, down 6 percent; Old Navy North America, down 11 percent; and Gap Intl., decreased 6 percent.

For more company financial reports, look under the Retail Financial Reports section of this website, www.vmsd.com.