NEW YORK (CNN/Money) -
Retailers once again posted robust monthly sales in March -- carrying forward the momentum after a strong start to the year -- as merchants benefited nicely from easy comparisons, tax refund checks and Easter shopping.
Across-the-board, discounters, department stores and specialty retailers said sales at stores open at least a year -- a closely watched retail measure known as same-store sales -- were solidly higher.
While the March numbers were good overall, at least one analyst said he had expected more upward surprises.
"I am a little surprised that we still have a couple of names that fell short of upwardly revised sales forecasts, but they're still raising quarterly guidance," said Ken Perkins, retail analyst with Thomson Financial. "This could mean that inventory positions are in good shape, retailers are selling more at full price and that trickles down to the bottomline."
Wal-Mart Stores Inc., the world's largest retailer said its sales for the five-week period ended April 2 rose 6 percent, at the high end of its earlier guidance, as shoppers picked up holiday-related merchandise and seasonal apparel.
Net sales for the month rose 14 percent to $25 billion from $22 billion a year earlier.
Wal-Mart (WMT: Research, Estimates), however, indicated it expects April sales to go up at the low end of a 4 to 6 percent range.
Separately, discounter Target Corp. (TGT: Research, Estimates), which operates its own namesake stores and the Mervyn's and Marshall Fields department stores, posted a 7.3 percent sales gain in March.
Department stores continued to show impressive results.
Plano, Texas-based J.C. Penney Co. (JCP: Research, Estimates), which recently announced the sale of its ailing Eckerd drugstore chain, said sales at its department stores open at least a year rose 11.4 percent on the back of strong demand for spring clothes.
"Economic conditions have improved significantly from March last year when commerce was impeded for much of the month by the run up to the Iraq war," said Perkins. "People do appear to be shopping more."
While he expects year-over-year comparisons to remain relatively easy through June, Perkins said the second-half could be more challenging as comparisons become tougher.
Among specialty apparel retailers, women's clothier Ann Taylor (ANN: Research, Estimates) logged a 12 percent gain in March sales and also upped its first-quarter profit forecast, while Bebe Stores (BEBE: Research, Estimates) said its sales for the month jumped a strong 20.5 percent.
Sales at Gap Inc. (GPS: Research, Estimates), the No. 1 apparel retailer, rose 8 percent.
"Customer response to spring collections, combined with disciplined inventory management, drove improved regular price selling in the month," the company said in a statement.
Limited Brands (LTD: Research, Estimates), which owns the Bath & Body Works, Express and Limited chains, reported a 15 percent jump in March sale, driven by strength in its Victoria's Secret business.
But Abercrombie & Fitch (ANF: Research, Estimates) missed out on the party. The teen apparel retailer posted a 1 percent decrease in March comparable sales, but raised its first-quarter profit outlook.
Another shocking miss came from Sharper Image (SHRP: Research, Estimates). The specialty retailer of unique gadgets and gizmos has posted double-digit comparable sales gains for most of last year. For March, the company said sales were up only three percent. Analysts had forecast a gain of 7 percent. The company, in a statement, attributed the weakness to inventory shortages, particularly of its iJoy robotic massage chair.
Michael Niemira, retail economist with the International Council of Shopping Centers (ICSC), forecast March retail sales for the universe of 55 retail companies he follows to rise 6.5 percent.
"It looks like that number is tracking at 6.8 percent, slightly higher than what we expected," Niemira said. "We did expect it would be a lot stronger but sales got pinched at the end of the month because of cooler temperatures in some parts of the country."
"I don't think the first three months represent an underlying trend," said Niemira. "Right now it is the easy comparisons that are driving the results. Going forward, the economic picture will drive sales, particularly the jobs market and whether or not it continues to improve."
|
