Direct Sales Were Flat for Many Firms in August

(Multichannel Merchant) It was definitely the dog days of summer for most publicly traded companies tracked by MULTICHANNEL MERCHANT. With few exceptions, August sales increases were scarce or nonexistent.

August direct sales for J.C. Penney Co. increased 3.6% to $202 million, compared with $195 million in August 2006. Internet sales for the Plano, TX-based general merchant rose nearly 24%, on top of a 16% rise in August last year. Total company sales slipped 1.1%, to $1.56 billion.

Meanwhile, Dallas-based luxury merchant Neiman Marcus Group reported a 2.5% rise in August sales for Neiman Marcus Direct, which consists of the print catalog and online operations for Neiman Marcus and Horchow as well as the Bergdorf Goodman Website. Total August revenue for the cataloger/retailer increased 7%, to $283 million.

August was a solid month for Hampstead, MD-based Jos. A. Bank Clothiers. The merchant’s sales for the month jumped 14.5%, to $33.9 million, up from $29.6 million in August 2006. The menswear cataloger/retailer posted a 1.1% rise in August direct sales, while same-store sales rose 7.7%.

It was a rough month for Columbus, OH-based retailer parent company Limited Brands. August sales for the company’s Victoria’s Secret Direct took a direct hit, plunging 64% compared with August sales in 2006. Limited Brands blames the shortfall on the back end. Its vice president of investor relations Amie Preston addressed the situation during a company conference call.

“We transitioned to a new distribution center in August and experienced delays in shipment time,” she said. “Demand from customers as measured by orders received was roughly flat for the month of August, however, sales are not recognized until orders are received by customers.”

The company anticipates that the new DC will be operating under normal ship times by the end of September, “and we expect a significant increase in September sales versus last year as we clear the current backlog,” she said.

And finally, the bleak times continued for San Francisco-based Sharper Image Corp. August sales at the electronic gifts merchant sunk 34%, to $21.9 million, compared to $33.4 million in August 2006. Catalog/direct marketing sales (including wholesale) plummeted 67%, to $3.1 million from $9.3 million last year. Internet sales fell 40%, to $2.9 million, and same-store sales decreased 16%.