Early reports show U.S. retailers turning in strong sales for
January, a time of heavy promotions to clear holiday goods and make
way for early spring merchandise.
January is the end of the fiscal year for most retailers and the
month is important because it serves as a good barometer of how
much consumers have left over after holiday spending and also gives
inklings of what type of buying may lie ahead.
January sales were helped by a number of measures including the
averted "fiscal cliff," growth in jobs and greater wealth from home
prices and the rising stock market. The sales figures follow a
generally lackluster December, when economic unknowns left many
consumers reluctant to spend.
Costco Wholesale Corp. (COST) reported a 4% rise in U.S.
same-store sales minus gasoline, compared with the 3.6% increase
that was expected. On a regional basis, Costco saw strength in
Texas, the Southeast, the Midwest and the Northwest.
By category, both hardlines and softlines comparable sales
increased in the mid-single digit range, with hardline strength
posted in hardware and consumer electronics, and softline strength
reported in small appliances and women's apparel.
Including the impacts of foreign exchange and gasoline prices,
the average transaction was 1% higher.
Limited Brands Inc. (LTD), operator of Victoria's Secret and La
Senza, reported comparable-store-sales growth of 9%, when analysts
were expecting 3.7%. The company said it was "comfortable" with the
Wall Street consensus estimate of $1.73 for fourth-quarter earnings
per share.
The 18 retailers tracked by Thomson Reuters are expected to post
3.5% growth in January same-store sales, or sales at stores open
over a year. The figure compares with 4.4% a year ago.
Stage Stores Inc. (SSI) said January same-store sales rose
10.5%, when 4.6% was expected, with growth in every merchandise
category and geographic area. Accessories, home, intimates, junior
sportswear and misses sportswear were particularly strong. "January
put an exclamation point on a fantastic fourth quarter and year, as
the month's strong performance helped push comparable store sales
for both periods to their highest levels in over 10 years," Chief
Executive Michael Glazer said. This is the last month Stage Stores
will be reporting regular monthly sales.
Zumiez Inc. (ZUMZ) posted 2.6% growth in same-store sales when a
3.1% decline was expected. Based primarily on better than expected
sales, the company increased its fourth quarter guidance. Zumiez
now expects earnings per share to be 65 cents to 66 cents, from a
prior estimate of 59 cents to 62 cents.
Fellow teen retailer Buckle Inc. (BKE) was an outlier, reporting
a 2% drop in same-store sales when a 1.3% rise was projected.
Teen retailer Wet Seal Inc. (WTSLA) also had a tough time, with
January comparable-store-sales dropping 9.4%, when a 2.3% decline
was projected.
--Anna Prior contributed to this article
Write to Karen Talley at karen.talley@dowjones.com
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