Big retailers including Costco Wholesale, Macy’s, Target, and Kohl’s reported June sales on Thursday that failed to meet estimates. Some retailers even changed their earnings forecasts as a result. As the back-to-school season and the holidays get closer, a rotten retail stock could start to stink. Here’s what analysts are looking out for.
Costco reported a 3 percent increase in same-store sales, falling below estimates of 3.7 percent. “It’s estimated that 100 basis points of Costco’s June (same-store sales) was impacted by the shift of the July 4 holiday,” Dana Telsey of CEO of Telsey Advisory Group told CNBC, citing the mid-week holiday as one of three factors contributing to June’s same-store sales decline.