Nation’s Retailers Report Mixed March Sales

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The New York Sun

The nation’s retailers struggled with mixed sales in March as unusually cold weather and climbing gas prices outweighed the benefit of an early Easter holiday.


As the nation’s biggest retailers reported sales results Thursday, several youth-oriented apparel sellers were the big winners, with retailers like Abercrombie & Fitch and Bebe Stores posting sharply better than expected results.


But heavyweight retailers Wal-Mart Stores and Limited Brands reported sales that missed Wall Street forecasts. Moderately priced department store operator J.C. Penney Company said its sales barely rose, soundly missing estimates.


Higher-end department stores again delivered better than expected results. Nordstrom and Federated Department Stores, whose holdings include Bloomingdale’s, posted sales that easily beat estimates. Those chains have profited from the strengthening economy and affluent consumers’ willingness to spend on luxury items.


“The primary trend is the teen retailers have again blown out their numbers,” said the president of RetailMetrics LLC, in Boston, Ken Perkins.


“In terms of the remaining apparel retailers, it’s sort of been a mixed bag for months. A number of companies have mentioned weather, but generally, those companies like discounters that have fared poorly over the past six months, continue to do so,” Mr. Perkins said.


Based on a preliminary tally, 58% of retailers have beat expectations, while 40% have missed, Mr. Perkins said.


The results represent a significant drop-off from February, when a record number of retailers beat forecasts, “but it’s still not too shabby, and in line with the long-term average,” Mr. Perkins added.


March is an important month for retailers because it sets the tone for spring sales. This year, March took on added importance since it included Easter, which typically marks the biggest surge in consumer spending between New Year’s and Memorial Day.


Wal-Mart said its March same-store sales rose 4.3%, shy of the 4.4% predicted by analysts surveyed by Thomson Financial. Total sales for the month rose 11.3%.


Analysts consider same-store sales, or sales at stores open at least one year, the best indicator of a retailer’s performance.


The world’s largest retailer also pegged quarterly earnings at the low end of its target range, and forecast a modest rise in April same-store sales, between flat and 2%, blaming the shift in the Easter holiday and continuing bad weather.


Limited Brands, operator of Victoria’s Secret, Bath & Body Works, and Express clothing chains, said its same store sales fell 7%, worse than the 2.2% decline forecast by Wall Street. Its total sales for the month slipped 2%.


Penney said its same-store sales edged up 0.1%, soundly missing an estimated 4% rise. The department store operator said strength in southeastern and western states was offset by weak performance in the Midwest and Northeast during the Easter selling season. It also forecast current-quarter sales would range from flat to up slightly.


Nordstrom said its same-store sales rose 5.5%, above an estimated 4.1% gain, while its total sales rose 6.7%. Federated, which also operates Macy’s, said its same-store and total sales rose 3.4%, beating a projected 2.4% rise.


Youth apparel seller Abercrombie & Fitch Company said its sales jumped 21%, blowing past estimates of a 12.6% gain, while total sales for the month surged 34%.


Bebe Stores, which sells women’s apparel and accessories, said its same store sales climbed 30.6%, beating analysts’ estimate for a 25.9% rise. Its total sales surged 42.4%.


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