Same Store

OAK BROOK, Ill. -- McDonald's Corp. said yesterday that its slumping U.S. business should post improved results "as the year progresses" in 1997 while international operations should have an "excellent year."The company also said in its annual report that same-store sales in the United States fell 6.4 percent last year to an average of $1.43 million for stores open at least 13 months, from $1.54 million in 1996. That's a steeper decline than analysts had estimated.McDonald's said it will open fewer U.S. restaurants this year than last year, and that more than 70 percent of its 2,400 to 2,800 new restaurants planned for the year will open outside the United States.

Jos. A. Bank Clothiers Inc. announced its most profitable quarter since 1995 yesterday, breaking into the black for the year, and said the strong earnings would give the company room for more rapid growth in 1997.Beating analysts' expectations, the Hampstead-based menswear retailer posted earnings of $500,000, or 7 cents a share, for the quarter ended Feb. 1 compared with a loss of $5 million, or 73 cents a share, for the same period the year before.The company said it plans to add eight to 12 stores in existing markets.

Jos. A. Bank Clothiers Inc., showing continued recovery from a two-year apparel industry downturn, reported that its same-store sales for the fourth quarter ended Feb. 1 rose 5.9 percent from the comparable quarter a year earlier.For the full year, same-store sales were up 9.3 percent, the Hampstead-based men's clothier said.Timothy F. Finley, chairman and chief executive officer, attributed the sales increase to a combination of factors, including a better merchandise selection, less competition and good weather.

NEW YORK -- Sales petered out during Christmas week, dashing retailers' hopes of a last-minute rush to salvage what's become a disappointing holiday season, two reports yesterday showed.The pair of weekly surveys of large chains such as Wal-Mart Stores Inc. turned up lower-than-expected sales last week. Bank of Tokyo- Mitsubishi/Schroder Wertheim said sales rose 1 percent while LJR Redbook Research reported a 0.6 percent gain.Slow sales during what's usually the busiest week of the shopping season mean that many retailers won't do as well as they hoped.

Consumers showed they were in the mood to spend money on clothes last month, but were unwilling to sink themselves further into debt to buy durable goods, such as major appliances and electronics.Retail sales were mixed in November, with apparel stores showing increased sales over November 1995, but electronics stores such as Circuit City and Best Buy reporting declines."Santa's sleigh will be filled with apparel," said Kenneth Gassman, a retail analyst with Davenport & Co. in Richmond, Va.The apparel industry had been knocked badly in the past two years by a lack of interest in clothing.

Riding a strong rebound in sales of men's suits and ties, Jos. A. Bank Clothiers Inc. yesterday reported a 19.3 percent increase in sales at stores open one year -- a key measure of performance -- for its fiscal third quarter.It was the fourth consecutive quarter of same-store-sales increases for the company that two years ago was fighting for its survival."We made a greater stride than anyone would have thought," said Timothy F. Finley, chairman and chief executive officer of the Hampstead-based apparel company.

Weathering an assault on the apparel industry, Jos. A. Bank Clothiers Inc. reported yesterday another quarter of improving sales driven by that old standby -- tailored clothing.After introducing a line of men's casual wear less than a year ago to capture an emerging market, the Hampstead-based retailer is increasingly finding that suits are still a strong sale: For the first quarter, which ended May 4, men's sales in stores open at least a year -- a crucial gauge of performance -- jumped 8.6 percent over the same period last year.

In yet another sign of the continuing deterioration at Merry-Go-Round Enterprises Inc., the Joppa-based fashion retailer yesterday reported a double-digit drop in sales in June.For the four weeks ended July 1, the company registered $49 million in sales, down $15 million, or 23 percent, over the same period last year. Sales at stores open at least a year fell 15 percent.Company officials declined to comment, but analysts were not shy about what the numbers meant."They're terrible -- I mean, 'terrible' is probably a charitable word," said Kurt Barnard, president and publisher of Barnard's Retail Marketing Report, a forecasting newsletter in New Jersey.

Merry-Go-Round Enterprises Inc., the struggling fashion retailer based in Joppa, said sales at its stores open for at least a year declined by 7 percent last month compared with November 1993. It was the company's best monthly "same-store" result this year.But the benchmark month from last year was extremely poor, as the chain was getting closer to declaring bankruptcy. Same-store sales in November 1993 fell by 23 percent compared with the same month in 1992, so the 7 percent drop announced yesterday still represents sharply lower revenue than what the company was garnering several years ago.Merry-Go-Round sought protection from creditors under Chapter 11 of federal bankruptcy law in January.

Shares of Landover-based Hechinger Co. fell 11.3 percent yesterday after the retailer said sales at stores open more than a year fell 2 percent last month.In all, sales at the company were up 20 percent to $251 million, with the company's Home Quarters Warehouse providing a 46 percent increase in total sales. The Hechinger stores saw a 2 percent decline in overall sales among old and new outlets.Hechinger said same-store sales, or sales at stores open at least one year, for Hechinger Stores fell 3 percent, while sales at same-store Home Quarters were flat.