September leaves a myriad of weaker-than-expected US fashion retail sales updates

Data collated by NASDAQ on US apparel retailers reporting monthly performance updates on Thursday show a down trend in comparable sales over September for most of them.

The most recurrent explanation for such a generalised dip in sales was the unseasonably warm weather that delayed purchases of fall apparel and also reflected lacklustre back-to-school spending.

Market experts point out that September is a transition month, marking the end of the back-to-school shopping, which is a necessity, and ahead of the key holiday season. That said, it’s worth of recalling that the back-to-school season is the second-biggest selling period for retailers after the Christmas holiday season.

Unseasonably warm weather and lower consumer confidence burden September sales

In late September, data showed that consumer confidence in the US unexpectedly improved over the month to its highest level since the recession. As an indicator of this improvement, The Conference Board’s consumer confidence index jumped to 104.1 in September from an upwardly revised 101.8 in August.

L Brands, Inc. (LB), the owner of Victoria's Secret and Bath & Body Works chains, said its September comparable store sales increased 3 percent, reflecting strength in its Bath & Body Works brand. This compared to an increase of 8 percent in the year-ago period. Despite the 6 percent year-on-year increase in monthly net sales, the company noted that the September merchandise margin rate was down significantly to last year and below expectations. On the upside, looking ahead, L Brands said it expects same-store sales for the month of October to be up low single digits.

Meanwhile, teen apparel retailer Buckle, Inc. (BKE) reported comparable store net sales for the month of September were down by 15.5 percent. Net sales for the month declined 14.8 percent to 82.9 million dollars from last year's 97.4 million dollars.

Similarly, Cato Corp. (CATO) reported that its September same-store sales declined 9 percent, while total sales decreased 8 percent from last year to 76.2 million dollars. In this regard, John Cato, chairman, president, and chief executive officer said, "September same-store sales were well below our expectations."

Image:Victoria’s secret