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Retail Sales Up in February
February was a very good month for retailers, who reported strong sales across the board.
Retail Metrics Inc., a market-research group based in Massachusetts, said its index rose 9.6 percent. It had previously estimated that retail sales would rise 7.4 percent.
Ken Perkins, president of Retail Metrics, credited a strong economy for the good showing. “Weekly initial jobless claims touched a low last week not seen since 1969,” he wrote in a March 6 note. “Personal income increased in January. Tax cuts are putting more money in consumers’ pockets. Consumer confidence is elevated. … The consumer is spending.”
However, he cautioned against thinking that the past month’s sales will put retailers in the black. He wrote that February makes up the smallest percentage of monthly sales. Retailers ought to be much busier in March and April with Easter shopping. “We shouldn’t read much into February results,” he wrote.
L Brands, the parent company of Victoria’s Secret, reported a successful February with same-store sales up 3 percent. However, Retail Metrics’ Perkins said L Brands missed Wall Street forecasts.
The month’s results were mixed for mall retailer The Buckle Inc. and value retailer Cato Corp. These retailers reported net sales increases of 2 percent and 5 percent, respectively. But their same-store sales declined 5.3 percent and 5 percent, respectively.
John Cato, Cato’s chairman, president and chief executive officer, said February same-store sales were below the company’s expectations. “However, inventory levels are in line, due to strong inventory management.”
Mall retailer Zumiez Inc. said it would report its February sales on March 15.
Retail analysts were cheered by news of successful fourth quarters recently reported by Abercrombie & Fitch Co. and Urban Outfitters Inc.
For Abercrombie & Fitch, net sales for its fourth quarter of fiscal 2017 were $1.2 billion, up 15 percent from the same quarter in the previous year. Its same-store sales were up 9 percent.
On March 6, Urban Outfitters reported net sales for the fourth quarter of fiscal 2018 increased 5.7 percent to $1.09 billion. Same-store sales increased 4 percent for the quarter. There was double-digit growth for its digital channel, offset by a decline in sales for its physical stores.
