Retailers Are Posting Mixed Same-Store Sales For March
05 April 2012 - 10:39PM
Dow Jones News
Retailers are generally reporting mixed sales for March, early
reports show, with Limited Brands Inc. (LTD) a standout while
Costco Wholesale Corp. (COST) faltered.
Limited Brands, which operates Victoria's Secret and Bath &
Body Works, posted an 8% rise in March same-store sales when 4.4%
was expected.
Costco posted a 5% gain in March same-store sales in the U.S.
excluding gas, when 5.7% was expected. While Costco did have
positive same-store sales in all departments, the retailer may be
being undercut by the competition, retail analyst Brian Sozzi
said.
Teen retailers are a mixed bag. Buckle Inc. (BKE) said
same-store sales increased 6.4%, when 8.8% was projected. Wet Seal
Inc. (WTSLA) same-store sales fell 7.8% when a 6% drop was
projected. Zumiez Inc. (ZUMZ) posted a 14.1% rise in same-store
sales when 8.9% was expected.
Rural department store chain Stage Stores Inc. (SSI) said
same-store sales for March rose 4.7%, when 2% was expected, with
accessories, children's, cosmetics, dresses and footwear all
showing strength. Geographically, the Mid-Atlantic, Midwest,
Northeast, South Central and Southwest regions all had comparable
store sales gains during the month. The company cited warmer than
normal weather and the earlier Easter for its solid showing, but
said the holiday will have a negative impact on April
comparable-store sales.
The misses by quite a few companies are surprising, analysts
said. "March was an absolute bull month for the consumer, so it
leads me to believe those retailers that fell short did not have
products and prices that resonated with consumers," said Joel
Bines, managing director of the retail practice at AlixPartners. "I
think we're going to see some extremely strong results from the
bigger players as they report."
A 5.3% rise in same-store sales is expected from the 18
retailers tracked by Thomson Reuters. The figure compares with a
1.7% gain a year ago, when Easter came two weeks later in
April.
-By Karen Talley, Dow Jones Newswires; 212-416-2196;
karen.talley@dowjones.com
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