Increasing demand for apparel helped many retailers post improved same-store sales results in February despite weather trends that kept many shoppers at home.
Results for the month tended to exceed the expectations of analysts and the of the stores during the first month of the new retail year. Improving trends were seen early in the month before inclement weather in much of the U.S. limited shoppers’ mobility and desire to buy.
Upscale stores continued to rebound from depressed sales in 2009. On top of the 5.1 percent increase in comps reported for Neiman Marcus Inc.’s specialty retail segment on Wednesday, Nordstrom Inc. led all department stores with a 10.3 percent jump in February same-store sales, and Saks Inc. was up 2 percent for the month.
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Macy’s Inc. reported a 3.7 percent increase in its February comparable-store sales. “Sales performance was strong at both Macy’s and Bloomingdale’s in February, despite a series of winter storms that affected store operations in some of our largest markets during key selling periods of the month,” said Terry Lundgren, chairman, president and chief executive officer of the company. “If not for the storms, we estimate that our February same-store sales would have been up by approximately 5 percent.”
Among midtier broadlines merchants, Kohl’s Inc. remained in positive territory with a 3.7 percent increase, and it was joined by rival J.C. Penney Co. Inc., which reversed recent declines with a 1.2 percent increase. Penney’s said that children’s was its strongest merchandise segment while home was its weakest.
Kevin Mansell, Kohl’s chairman, president and ceo, said, “Our February sales results reflect continued consistency as all lines of business once again achieved positive comparable-store sales increases. Transactions per store remain strong, driving our performance as we continue to focus on gaining market share.”
Stage Stores Inc.’s comps declined 3.9 percent. “A good early response to our spring merchandise was not enough to overcome the negative impact of unseasonably cold temperatures in the South and several major snowstorms,” said Andy Hall, president and chief executive.
Many stores surpassed expectations despite the weather. Abercrombie & Fitch reported a 5 percent increase for the month, with its flagship division increasing 8 percent. Gap Inc. was up 3 percent, with Gap flat and Old Navy and Banana Republic’s U.S. stores up 5 percent and 6 percent, respectively. Limited Brands Inc. rose 10 percent and American Eagle Outfitters Inc. checked in with a 6 percent increase. Buckle Inc. was up 5.1 percent and The Wet Seal Inc. ahead 4.7 percent.
Off-pricers continued to flourish with double-digit gains. The TJX Cos. Inc. posted a 10 percent rise while Ross Stores Inc. was up 11 percent for the month. Target Corp. moved ahead 2.4 percent during the month on a comp basis.
Michael Balmuth, vice chairman and ceo of Ross, called the strong Februrary results “well above our expectations. While we are encouraged by this healthy start to the year, the important March/April holiday selling period is still ahead. In addition, the impact of an earlier Easter is always very difficult to predict.”
Ross reaffirmed its forecast for a comp increase of 3 percent to 4 percent in March, and flat to up 1 percent in April.
Declines for the month included Destination Maternity Inc. and Stein Mart Inc., both down 9.3 percent.
For complete coverage, see Friday’s issue of WWD.