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February Cold Makes Mixed Business
Extreme weather across much of the U.S. put a chill in business for February, but many retailers pulled out good sales during the month.
U.S. chain-store sales increased 2.7 percent, according to a tally of same-store sales compiled by the New York–based trade group International Council of Shopping Centers.
“A number of retailers commented on the negative impact weather had on company sales this month, creating store closings and reduced operating hours for retailers and a decrease in Spring-category demand for consumers,” said Michael P. Niemira, ICSC’s chief economist.
Storms across much of the U.S. kept people out of malls, but Adrienne Tennant of Janney Capital Markets noted a pickup in traffic after Valentine’s Day, according to a March 3 research note. The bump in traffic must have benefitted teen retailer Zumiez Inc. The Lynnwood, Wash.–based retailer with a fleet of 552 stores posted a same-store-sales increase of 2 percent. Zumiez’s net sales for February 2014 were $48.4 million, which was an 8.8 percent increase from the net sales of $44.5 million reported for the same time in the previous year, said Rick Brooks, chief executive officer of Zumiez.
However, February was tough for Gap Inc. the largest specialty retailer in the world. Its same-store sales declined 7 percent. The retailer’s net sales were $929 million compared with net sales of $966 million of the same time in the previous year, according to a company statement.
Surf giant Quiksilver Inc. reported results for the first quarter of its fiscal 2014 on March 6. It reported that its net revenues were $393 million or down 2 percent from $412 million. The Huntington Beach, Calif.–based Quiksilver runs a fleet of 645 stores across the globe. The same-store sales for the company-owned stores increased 2 percent during the first quarter.
If weather continues to be cool in March, Tennant said, retailers may have a tough time selling Spring fashion, and retail traffic might only pick up later in late March and early April, when people start shopping for Easter, which falls on April 20 this year. The ICSC forecast that sales will increase 3 percent in March.
