September Numbers Lift Retailers' Spirits
Many retailers reported better-than-expected sales in September, and economist Michael Niemira said it was proof a long-awaited recovery had started.
Niemira is the chief economist for the New York–based International Council of Shopping Centers. ICSC reported that sales for U.S. chain stores increased 0.1 percent in September. It was the strongest sales performance since July 2008, when same-store sales increased 3.3 percent in a year-over-year basis. Niemira considered the small September uptick a recovery because retailers had spent the past year suffering through the worst economy in decades. “To be sure, the retail recovery will be uneven, and growth will be in spurts and fits,” Niemira said. “But it seems increasingly clear that it is recovery.”
Analysts and retail executives said many companies reported better-than-expected September sales performances. The improved sales trend had companies such as Target, Kohl’s, Ross Stores and TJX increasing their guidance for their upcoming financial quarters. Pleasanton, Calif.–based Ross Stores increased its guidance on its earnings per share for its quarter ending Oct. 31 to $.75 to $.77 per share, compared with $.44 per share in the third quarter of 2008.
Specialty retailers reporting good performances included Kearney, Neb.–based The Buckle. Its same-store sales grew 5.1 percent in September. Comparable-store sales for Gap’s Old Navy division increased 13 percent in September, while the San Francisco–based retailer’s other divisions reported declines.
Hot Topic, based in the City of Industry, Calif., beat Wall Street forecasts for September. The consensus for the pop-culture, mall-based retailer’s performance was a decline of 6.6 percent. Instead, Hot Topic reported a decrease of 4 percent. Its Torrid division posted a positive same-store sales increase of 4 percent.
Luxury retailers reported poor sales performances during September. Neiman Marcus’ same-store sales dipped 16.9 percent. Saks reported a drop of 11.6 percent.
Los Angeles–based American Apparel reported a 16 percent decline in September same-store sales for its retail division. Brisbane, Calif.–based Bebe Stores Inc. reported same-store sales were off 25.7 percent.—Andrew Asch
