Reports: Weather Hits May Sales

NEW YORK CITY-Retailers’ sales last month, which most chains will report tomorrow, might have suffered due to cooler-than-normal weather, according to analyst reports released this week. Tough comparisons to a strong May in 2004 could also hinder same-store sales, they say.

“We believe cooler weather during the month combined with higher interest rates and gasoline prices could translate into slower sales for retailers, especially in seasonal merchandise,” says Christine Augustine, a Bear Stearns analyst who follows department stores, in a note to investors. She also points out that gas prices are 4% higher than the same period last year.

Some of the companies that Mitchell Kaiser, a Piper Jaffray analyst outlined in a report, face the difficult comparisons to last year. Costco, which he is forecasting at 3% year-over-year same-store sales increase during last month, is up against a 16% jump in May 2004. Big Lots, predicted to have a 2% increase, was up 7.4% last year.