RAPAPORT...  There was a strong possibility that October retail sales in the U.S. would reflect modest gains, given the double-digit declines experienced one year ago, but the results from the retailers Rapaport follows were largely mixed. Macy's, JCPenney Stores and Neiman Marcus reported weaker results, while October figures from Kohl's, Saks and Nordstrom showed improved sales. October closed the current fiscal quarter for retailers, with only Kohl's and Nordstrom reporting gains from one year ago, as both retailers added a number of new stores.

Overall, according to data compiled by the International Council of Shopping Centers (ICSC), U.S. comparable-chain-store sales in October fell 2 percent for apparel versus a drop of 11 percent one year ago. Luxury stores posted a gain of 6.3 percent compared with a drop of 19.2 percent in October of 2008. Department store chains were flat versus a drop of 10.9 percent in 2008. Total U.S. comparable-store sales rose 2.1 percent, following a 4.2 percent decline one year ago, while overall retail sales slipped 0.8 percent in October, compared with September.

Michael P. Niemira, the chief economist and director of research for ICSC, noted, "The improvement in the stock market has had a significant impact on the affluent shopper’s willingness to spend — as the luxury market has shown its first positive reading since May 2008." ICSC also predicted that same-store sales would increase between 5 percent and 8 percent during November, compared with one year earlier.

October revenue at Macy's fell 1.3 percent to $1.7 billion, while same-store sales fell 0.8 percent. Online sales rose by 35 percent for macys.com and bloomingdales.com, contributing the bulk of the overall same-store sales increase — 0.6 percentage points. Macy's closed the third quarter with sales of $5.5 billion, a decrease of 4 percent from the comparable period of 2008, while its same-store sales fell 3.6 percent during the quarter. Fiscal-year revenue has fallen nearly 8 percent to $15.6 billion and its same-store sales have dropped 7.5 percent. The department store will report its third-quarter and year-to-date profits on November 11.

J.C. Penney Company reported that its comparable store sales in fell 4.5 percent in the month of October and that its total sales were down 3.5 percent to $1.3 billion. The retailer's third-quarter sales fell 3.2 percent to $4.2 billion, with comparable-store sales dropping 3.2 percent for the quarter. JCPenny's fiscal-year sales fell 5.7 percent to $12 billion and its same-store sales dropped by 7.2 percent. Fine jewelry continued to be very weak at JCPenney stores. The retail chain predicts comparable-store sales declines of between 4 and 7 percent for November. JCPenney will release its third-quarter profits on November 13.

Sales at Kohl's rose 4.9 percent to $1.3 billion in the month of October, with same-store sales reflecting an increase of 1.4 percent. Third-fiscal-quarter sales were 6.5 percent higher at $4.1 billion, pushing fiscal-year sales 3.1 percent higher to $11.5 billion, which the company attributed to the addition of 55 new stores in the past 12 months. Kohl's same-store sales have, however, decreased 1.3 percent so far in fiscal 2009. Third-quarter profits will be announced on November 12.

Upscale retailer Saks increased its October sales by 1.8 percent to $219.8 million, with its comparable-store sales up 0.7 percent from one year ago. Saks' third quarter ended October 31 and its sales for this quarter fell 8.9 percent to $622.7 million, with its comparable-store sales declining by 10.1 percent. Fiscal-year-to-date sales at Saks were down 17.5 percent to $1.8 billion, while same-store sales were 18.5 percent lower. Saks reported that its jewelry category showed some strength at Saks Fifth Avenue and predicted that its same-store sales would decline in the mid- to high single digits — in aggregate — for the second half of fiscal 2009, which includes the Christmas shopping season.

Nordstrom reported a 6.5 percent increase in same-store sales for October and a preliminary sales total of $607 million, which represented an increase of 15 percent from one year ago. Nordstrom has added four department stores and 12 Off-Rack locations since November 1, 2008. The retailer's third-quarter revenue increased 3.5 percent to $1.87 billion, but its same-store sales decreased 1.2 percent. For the fiscal year, Nordstrom's same-store sales declined 8.4 percent, while its preliminary revenue fell 4.2 percent to $5.72 billion. The retailer will release its third-quarter profits on November 12.

Neiman Marcus' sales fell 4.2 percent to $274 million in October, while its comparable-store revenue dropped by 6 percent to $269 million. Neiman Marcus Stores and Bergdorf Goodman experienced a sales decline of 6.2 percent during the month of October, with only women's fine apparel, shoes and men's clothing performing well. Jewelry comprised a top-selling category for Neiman Marcus Direct, but the division also reported that its overall comparable-store sales fell 4.8 percent in the month of October. Revenues for the group's first fiscal quarter of 2010 fell 12 percent to $869 million as its same-store sales declined 13.7 percent to $850 million. On a quarterly basis, Neiman Marcus' comparable-store sales were down 13.7 percent. The retailers' first-fiscal-quarter results will be announced on December 9.