NEW YORK (CNN/Money) -
The nation's retailers logged higher sales in March, helped by an early Easter holiday and a steady stream of consumer spending amid a slowly recovering economy.
Discount chains continued to outpace traditional department stores and specialty chains last month, as consumers, whose spending fuels two-thirds of the economy, displayed an ongoing appetite for low prices, wary of high unemployment and an economy that is taking its time to bounce back from a recession.
"They were tepid. They give clear indication that Americans are far from ready to go on buying binges," said Kurt Barnard, president of Barnard's Retail Consulting Group.
Retailers credited Easter, which fell in the last week of March this year, with the assist for the overall boost to sales during the month. However, that same factor also yanked sales from April, a transitional month for retailers as they clear out spring items to make room for summer inventory. As a result, several chains are expecting lower sales in the month.
But for now, merchants are enjoying the sales boost after a year of stagnant performance and profit-eating discounts.
Wal-Mart (WMT: down $0.06 to $60.51, Research, Estimates), the world's biggest company and retailer, said Thursday that sales at stores open at least a year, a key gauge known as same-store sales, increased 10.7 percent at its core Wal-Mart stores and grew 4.1 percent at its Sam's Club wholesale division. The overall company increase was 9.5 percent.
The Bentonville, Ark., company also reiterated that it's comfortable with analysts' fiscal first-quarter earnings estimates. Analysts surveyed by First Call expect the company to earn 36 cents a share in the quarter ending this month.
Target Corp. (TGT: up $0.20 to $44.95, Research, Estimates) said its March same-store sales increased 6.8 percent in March. The discounter, which targets a slightly more upscale consumer with its stylish apparel and home fashions, said its core Target stores were the driver, helping to offset declines at its Marshall Field's and Mervyn's department store divisions.
Warehouse club Costco Wholesale (COST: down $0.11 to $41.96, Research, Estimates) reported a 7 percent jump in March same-store sales for the whole company, and an 8 percent increase at its U.S. stores.
B.J.'s Wholesale Club Inc. (BJ: down $0.40 to $46.10, Research, Estimates) also benefited from the lackluster economy and early Easter, reporting a 4.8 percent rise in its same-store sales. The Natick, Mass.-based company also said it expects a 3 percent to 5 percent increase in April same-store sales and reaffirmed first-quarter earnings guidance of 31 cents to 33 cents a share.
Though department stores are struggling amid discount chain competition, a few are bucking recent trends.
Kohl's Corp. (KSS: down $2.50 to $72.50, Research, Estimates) reported a 9.1 percent jump in March same-store sales, as the moderately priced department store continued to grab market share from competitors with its planned promotions and tight vendor terms.
Meanwhile, J.C. Penney (JCP: up $0.22 to $21.73, Research, Estimates), in the midst of a turnaround, said its department stores posted a March same-store sales increase of 6.8 percent, helped by children's apparel and home products. Same-store sales at its Eckerd drugstore division jumped 10.2 percent, with strong performances from prescriptions, spring goods, candy, household products, baby care items and other everyday items.
But Gap Inc. (GPS: down $1.64 to $13.80, Research, Estimates), the nation's biggest apparel chain, continued to struggle in March as it works through a slump of missed fashions and discount-focused consumers, reporting a 12 percent drop in same-store sales. The company, which operates Gap, Old Navy and Banana Republic stores, said Gap and Old Navy were the weakest performers in the period with pre-Easter sales coming in below plan.
Federated Department Stores (FD: down $0.56 to $40.99, Research, Estimates) said its March sales fell 0.2 percent from a year earlier. But the parent of Macy's and Bloomingdale's credited the early Easter holiday for the narrow decline by pulling in sales from April. However, the early Easter in turn will hurt April sales. The company said it continues to expect a 4 percent to 5 percent drop in April same-store sales, and a 2 percent to 3 percent decline in first-quarter sales.
Dillard's Inc. (DDS: up $0.69 to $25.00, Research, Estimates) said its same-store sales increased 5 percent from a year earlier. Total sales increased 6 percent for the department store chain.
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