Most Retailers Post Strong Sales in June

Americans continued their shopping spree in June, the sixth straight month of sales gains for many of the nation’s retailers, thanks to a healthy economy and a surging stock market.

June retail sales reports issued Thursday showed that most merchants fared well, especially discount and some clothing stores.

But there were exceptions. Several big chains, including Sears, Roebuck & Co., Kmart Corp. and J.C. Penney Co., were hurt by unseasonably cool weather in the Northeast and West, markdowns and sagging demand for athletic shoes and sportswear.

Penney said its weak sales would result in lower-than-expected earnings for the current quarter. Its shares tumbled, and Sears stock also slid.

Overall, however, “The consumer is still out there buying,” said Joseph Ronning, a retail analyst at Brown Brothers Harriman.

Wal-Mart, the nation’s largest retailer, said sales from stores open at least a year rose 9% from a year earlier. Total sales were up 17.4%.

Dayton Hudson Corp. said same-store sales rose 4.6% and total sales rose 10.4%. Same-store sales were strongest at its Target discount stores, up 4.9%.

Federated Department Stores’ same-store sales rose 3.4% and total sales were up 2.3%. May Department Stores said its same-store sales rose 4.5% and total sales gained 6.1%.

But Sears said its same-store sales rose just 0.3%, despite strong sales of appliances and electronics.

Kmart’s same-store sales rose 1.5%. The chain blamed weather woes and “soft Father’s Day comparisons.”

* EARNINGS SHORTFALL: Penney, DuPont warn of lower-than-expected profit. D4