Retailers rang up better-than-expected sales in September as back-to-school business came to them late and often in response to price promotions.
A strong finish to the month — following weeks of shopper procrastination — helped the majority of stores reporting same-store sales results Thursday post increases that exceeded analysts’ estimations and in many cases their own as well.
Exceptions included Gap Inc., which finished the month with a 2 percent decrease, and Target Corp., which fell short of expectations with a 1.3 percent increase.
“We are pleased that we continued to deliver on our goal of driving overall sales growth, despite September being more challenging than we anticipated,” said Sabrina Simmons, chief financial officer of Gap. Net sales rose 1 percent to $1.34 billion despite the step back on comps.
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Thomson Reuters reported that, among 28 retailers tracked, the median performance in September was a 2.8 percent increase, better than the 2.1 percent expected. Nearly three-quarter of the stores — 73.1 percent — beat estimates, versus 23.1 percent who missed them and 3.8 percent who matched them.
Kohl’s Corp. registered a rare disappointment with a 3 percent increase that lagged estimates, while J.C. Penney Co. Inc.’s 5.1 percent rise surpassed both estimates and its midtier competitor’s showing.
Upscale stores performed well, led by Nordstrom Inc.’s 7.5 percent advance. Saks Inc. was close behind with a 6.5 percent increase, and Neiman Marcus Inc. reported 4.7 percent growth.
Macy’s Inc. was up 4.8 percent for the month and lauded the performance of its private brands. Other strong showings among the department stores included increases of 3 percent for Dillard’s Inc., 5.9 percent for The Bon-Ton Stores Inc. and 1.8 percent at Stage Stores.
Among specialty stores, Limited Brands continued to generate double-digit comparable-store sales growth, posting a 12 percent increase for the month, and The Buckle Inc. returned to positive territory with a 3 percent increase in September comps. Also posting positive numbers were Abercrombie & Fitch Co., up 13 percent; Aéropostale Inc., up 3 percent, and American Eagle Outfitters, up 4 percent. All figures among the teen retailers came in better than analysts had expected and all reflected substantial promotional prodding.
The nation’s two largest off-price chains generated modest increases, with The TJX Cos. Inc.’s 1 percent pickup falling just short of Ross Stores Inc.’s 2 percent positive tally.
For complete coverage, see Friday’s issue of WWD.