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Same-store sales surge
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May 6, 1999: 4:36 p.m. ET
Consumers, flush with extra income flock to specialty stores, clothiers
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NEW YORK (CNNfn) - Same-store sales among U.S. retailers surged 4.2 percent in April, beating forecasts for the seventh
month in a row, as shoppers flush with gains from a strong economy grabbed spring shopping bargains off the shelves.
The report, from Bank of Tokyo-Mitsubishi Ltd., for sales at stores open at least a year, beat the forecast of a 3 percent rise. Ann Taylor, Limited and Ross Stores all said higher
sales in the month will help them beat first-quarter earnings estimates.
The overall rise in same-store sales reflects strong consumer confidence in the economy, rising personal income levels and price tags on items that either haven't changed or have declined. What's more, sales would have been even better had the Easter holiday not fallen in March, analysts said. Easter is one of the biggest holidays of the year for retailers.
Even so, some analysts still question whether the cash registers will continue to chime with the same fervor through the summer months, particularly as the economy slows. Same-store sales are a key indicator of a retailer's business because they exclude sales from both new and just-closed stores. A store, as defined by the index, must be open for at least one year.
Sales rose more than 10 percent at AnnTaylor (ANN), while Neiman Marcus Group's (NMG) sales jumped 14 percent. J.C. Penney Co. 's (JCP) sales rose 6.7 percent while Dayton-Hudson (DH) sales gained 2.9 percent during the month. Federated Department Stores (FD), which owns such fabled retailers as Bloomingdale's, Burdines and Macy's, said sales jumped 12.9 percent among all its stores in the four weeks ended May 1.
Lord & Taylor parent May Department Stores (MAY) said its sales rose 7.7 percent as it shifted its major spring promotion into April. The owner of Lord & Taylor and Filene's is also among retailers that may beat first-quarter earnings estimates because of its strong sales gains, according to analysts' forecasts. Talbots's (TLB), which specializes in women's apparel, said sales rose 1.2 percent. Gap (GPS) sales rose a modest 1 percent in April, after a 29 percent jump last year, prompting investors to push its shares down 6-1/2 to 62-7/8.
Other stores reported stronger sales. New York specialty chain Venator (Z) said sales rose 2.2 percent during the month while Kohl's (KSS) sales surged 12.4 percent. Spiegel (SPGLA) reported a 5-percent gain and Michaels (MIKE), which sells specialty items for homes and crafts, saw sales surge 14 percent -- a reflection of the spring season.
Discount chains, as well, rang in higher sales, taking advantage of shoppers' desire for quality, selection and customer service. Wal-Mart Stores (WMT), the world's largest retailer, said sales rose 4.6 percent, in line with analysts' forecasts. Kmart's (KM) sales rose 5.7 percent, while Bradlees (BRAD) gained 7.8 percent.
The only retailer to buck the same-store-sales trend in April was Sears Roebuck (S). Its April sales declined 5.6 percent. 
--from staff and wire reports
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