Most retailers reported better than expected August same-store sales results today, driven by the late start of back-to-school selling. Analysts warned, however, that modest gains may not signal a strong recovery as macro-economic trends continue to impact consumer spending.
The department store sector reported an average comps gain of 1.3 percent. Saks posted a 18.2 percent increase in same-store sales, ahead of analyst expectations. Nordstrom also delivered stronger-than-expected results with a 6.6 percent gain. Moderate department stores didn’t fare as well, Kohl’s and J.C. Penney reported declining monthly sales of 0.6 and 4 percent, respectively. Macy’s was up 2.4 percent.
Specialty chains turned in the strongest average sector performance, with a 2.9 percent increase for the month. The teen specialty sector did particularly well, with all but Aeropostale beating the consensus expectations.
Abercrombie & Fitch, American Eagle, Buckle, Pacific Sunwear and Zumiez reported comparable store gains of 6, 9, 16.7, 9.6 and 17.4 percent respectively. Women’s retailers didn’t fare as well. Banana Republic reported a 7 percent increase. Gap was up 2 percent and Ann Taylor was up 2.9 percent. Chico’s missed estimates and reported its fourth straight monthly decline, down 9.3 percent for August.
The mass merchants showed an average comparable store gain of 2.2 percent for the month. Wal-Mart beat expectations and turned in its highest same-store sales gain since February of last year. It was up 2.8 percent. Target also beat industry expectations with an increase of 6.1. TJX Cos. and Ross Stores were both up 4 percent.
Despite the surprise of August comps retailers could face a tough September as they come up against strong numbers from 2006 driven by an unseasonably cool month last year. Macro-economic trends are also expected to be a factor through the fall.