Better-Than-Expected Sales Reported in April
April retail sales were better than expected for many retailers. The International Council of Shopping Centers reported that U.S. chain stores’ sales increased 0.7 percent. Warmer weather and the Easter holiday were credited with convincing American consumers to spend after a season of economic hardship.
Still, the news was not good across the board. Many retailers, especially department stores, had little to cheer about during April. The same-store sales of New York–based Saks Inc. plummeted32 percent. Same-store sales at luxury store Neiman Marcus declined 22.5 percent. At Nordstrom, same-store sales declined10.8 percent, and Macy’s reported a 9.1 percent decline in comparable-store sales.
Hot Topic’s comeback story continued in April but not at the rate anticipated. The pop-culture retailer reported a same-store increase of 3.1 percent. Retail analysts were anticipating an increase of 6 percent. Adrienne Tennant, an analyst for FBR Capital Markets, wrote Hot Topic’s sales in women’s bottoms had declined and the enthusiasm for teen vampire film “Twilight” had faded. Hot Topic had positioned itself as the go-to place for “Twilight” merchandise, and the sales frenzy for “Twilight” T-shirts and accessories had helped push the retailer back into the black after a few years of poor sales.
In her May 7 research note, Tennant characterized Hot Topic’s performance as a “speed bump on the road to recovery.”
A handful of retailers reported healthy sales for April. Nebraska-based specialty retailer The Buckle reported a same-store sales increase of 18.2 percent. Continuing a year-long trend, discounters and off-price stores reported good sales.
Ross Stores, based in Pleasanton, Calif., reported a same-store sales increase of 6 percent. For May, the ICSC forecast retail sales might range from flat to a decline of 1 percent compared to May 2008.—Andrew Asch
