March Sales Robust
March sales were robust, with many retailers reporting sales that either met Wall Street expectations or exceeded them.
U.S. chain-store sales increased 4.1 percent in March, according to the International Council of Shopping Centers’ index of retailers. The ICSC forecast that chain-store sales would rise between 3 percent and 5 percent for March, said Michael Niemira, the trade group’s chief economist.
“There were three contributing factors that positively affected sales for this month: Abnormally warm temperatures helped seasonal apparel demand, an earlier Easter than last year was advantageous for clothing stores, and an improving economy continued to bolster overall consumer spending,” Niemira said. Easter falls on April 8 this year. In 2011, it fell on April 28.
Macy’s Inc., Target Corp. and Ross Stores Inc. all reported higher-than-expected sales in March. Consequently, these retailers noted that they will increase their first-quarter guidance earnings. “March sales exceeded our expectations beyond the benefits we anticipated from an earlier Easter,” said Terry J. Lundgren, Macy’s chairman, president and chief executive officer.
Gap Inc. reported a same-store-sales increase of 8 percent, which continues a rally by the long-suffering San Francisco–based company. In February, same-store sales showed an increase of 4 percent. Gap had not reported positive same-store sales since July. Teen retailer Zumiez Inc. reported a great March. Its same-store sales increased 14.1 percent, compared with an 8.9 percent increase last year.
California retailers reporting quarterly results this week also had good news. American Apparel Inc. reported a same-store-sales increase of 14 percent for its first fiscal quarter. Bebe Stores Inc. reported results on
April 5 for the third quarter of its 2012 fiscal year. Same-store sales for the mall-based contemporary store increased 7.2 percent for its third quarter.—A.A.
