Two points: 1) Receipts are down 1%, but it has been widely reported that KSS and others were offering heavily discounted prices to keep receipts up. Therefore, margins should be down, if reports of discounting are correct. Consequently, lower margins applied to lower receipts should mean lower profits.
2) New store openings boosted the total store count by approx. 10%. Yet, today it was reported that total store receipts were up by only about 4%. Doesn't this imply that the new stores performed poorly?