March '02 Retail Sales Rebound
The Easter holiday gave retailers an expected lift in March as shoppers—inspired by an improving economy—sprung for spring fashions and returned to department stores and some specialty clothiers, including Saks Inc., Dillard’s Inc. and J.C. Penney Co. Inc. But, analysts warned that April sales will slump without a similar holiday-inspired shopping spree.
With all 80 stores reporting, the Bank of Tokyo-Mitsubishi/UBS Warburg chain store index surged nearly 5 full points ahead of last year’s 1.7 gain. It was deacute;ja vu for discounters, who posted some of the healthiest increases. Wal-Mart Stores Inc., which continued to benefit from Kmart Corp.’s bankruptcy, reported a 9.5 percent same-store sales increase. Same-store sales rose 6.8 percent at Target Corp., driven by its namesake discount division.
A handful of both luxury and discount department stores showed a turnaround. J.C. Penney posted a 6.8 percent gain in same-store sales, fed by strong sales of apparel. Saks beat Wall Street expectations with a 2.4 percent rise, citing strength in women’s contemporary and bridge sportswear and American and European designer collections. Federated Department Stores Inc. recorded a better-than-expected 0.2 percent decline in same-store sales. But, May Department Stores Co. fared worse, reporting a 6.9 percent decline.
It was a mixed bag for specialty retailers. The profit picture looked rosy for Ann Taylor Inc., which said same-store sales rose 3.5 percent. The improved sales outlook prompted the women’s clothing retailer to raise its fiscal first- and second-quarter earnings. Talbots Inc., however, made headlines with warnings about lower first-quarter projections. The women’s classic apparel retailer did report a 3.2 percent gain in same-store sales, but at a cost to April’s figures and the first quarter. The sun shone on teen retailer Pacific Sunwear of California Inc., which reported a 7.5 percent gain due to strong sales in girls’ apparel, improving sales in men’s apparel and growth in footwear. —Nola Sarkisian-Miller
