American consumers are showing signs of life, but they are choosy about where they shop, based on the mixed bag of retailers’ earnings posted Tuesday.
Overall spending has been strong, though more of it is shifting online. Sales at retailers and restaurants in July rose 0.6% from a month earlier, the biggest increase since December, the Commerce Department said Tuesday. Individual retailers missing out on the sales pickup are those struggling with their lineup of merchandise and how it is priced.
Dick’s Sporting Goods Inc., DKS -23.03% calling the retail environment “highly competitive and dynamic,” posted a 0.1% uptick in second-quarter sales at stores open at least a year, less than the 2% to 3% increase the company had expected. It also lowered its earnings forecast for the year.
The sporting-goods retailer has sought to benefit from the bankruptcies of rivals City Sports, the Sports Authority and others by capturing leases and intellectual property to boost its market share. But promotions it used to lure customers back to stores have pressured margins.
In a call with analysts, Dick’s Chief Executive Edward Stack said the company would benefit from industry consolidation as competitors falter but pricing pressure would likely continue. Dick’s shares were off 21% at $27.42 in afternoon trading.
Coach Inc.’s COH -15.19% shares were also punished, falling 14% to $41.22, after the handbag and accessories maker said its sales fell 1.8% to $1.13 billion, short of Wall Street’s expectations, although the company’s latest quarter was…