Retailers Report February Sales Growth Despite Severe Weather
05 March 2010 - 12:40AM
Dow Jones News
Most retailers, especially those geared to teen shoppers,
reported improved sales in February, thanks to easy year-ago
comparisons and despite winter storms that crippled large swaths of
the country.
As retailers reported their monthly figures Thursday, the
industry appeared on track to report their sixth straight month of
rising sales at stores open at least a year, known as same-store
sales, with 70% of retailers surpassing Wall Street expectations,
according to Thomson Reuters.
The winners say they came into February with lean inventories
that kept markdowns clean and saw some emerging demand. Those with
disappointing sales figures are largely blaming the weather, as
non-mall retailers appeared to struggle, including BJ's Wholesale
Club Inc. (BJ) and Costco Wholesale Corp. (COST), which both
reported lower-than-projected quarterly results.
While the consumer in general appears to be spending more at
stores, industry observers cautioned that February's results are
unlikely to be a good indication of first-quarter sales because of
the disruption from severe weather in many parts of the country and
the easy year-ago comparisons.
More importantly, observers said, will be how March shapes up
because it is a longer month and will include this year more
spending related to Easter, which falls on April 4, earlier than
last year.
"A particularly soft March would not bode well for retailers
already grappling with high unemployment and a weak job market,"
said Ken Perkins, research analyst at RetailMetrics.
Nonetheless, February proved to be a healthy month for many
retailers. Surprisingly strong was sales from teen retailer Zumiez
Inc. (ZUMZ), which reported same-store sales growth of 11% in
February, compared with Wall Street's projection of 1.2% growth and
last year's 13% slide.
In contrast, fellow teen retailer Hot Topic Inc. (HOTT) reported
a 7% decrease in same-store sales but still surpassed the average
Street estimate for a 13% decline.
Also strong was Limited Brands Inc. (LTD), which reported a 10%
increase in February same-store sales, benefiting from strong
Valentine's Day-related sales at its Victoria Secret division,
where same-store sales rose 10%. Limited's total sales rose to
$600.1 million from $547.8 million a year ago.
On the weak side was Destination Maternity Corp. (DEST), which
reported a 9.3% drop in February same-store sales, and apparel and
accessory store Stage Stores Inc. (SSI), which saw same-store sales
slide 3.9%.
"A good early response to our spring merchandise was not enough
to overcome the negative impact of unseasonably cold temperatures
in the South and several major snow storms," said Andy Hall,
president and chief executive.
-By Karen Talley, Dow Jones Newswires; 212-416-2196;
karen.talley@dowjones.com
LandBridge (NYSE:LB)
Historical Stock Chart
From Jun 2024 to Jul 2024
LandBridge (NYSE:LB)
Historical Stock Chart
From Jul 2023 to Jul 2024
