--U.S. retailers' same-store sales grow 6.1%, preliminarily,
when 4.1% was expected
--Vast majority of retailers are beating expectations
--Back-to-school buying credited, in large part
(Adds information about Kohl's, Buckle and overall results, in
the first, sixth and ninth through 11th paragraphs.)
By Karen Talley and Anna Prior
U.S. retailers delivered strong sales numbers for August,
boosted by back-to-school buying and consumers' penchant for
fashion, with Target Corp. (TGT), Macy's Inc. (M), Nordstrom Inc.
(JWN) and Gap Inc. (GPS) among the standouts.
Target's same-store sales rose 4.2%, above the 3.1% that was
expected, with stronger sales in the second half of the month as
the weather cooled in parts of the U.S. Customers "responded to
Target's broad assortment and compelling value for their
back-to-school and back-to-college shopping," Chief Executive Gregg
Steinhafel said.
Macy's same-store sales grew 5.1% when 3.6% was projected.
"Sales exceeded our expectations in August, and the strength was
broad-based across merchandise categories, geographies and
channels," Chief Executive Terry Lundgren said. Mr. Lundgren said
he was particularly pleased with back-to-school results in the
Millennial customer categories and improved performance in feminine
apparel. Men's apparel, home furnishings, beauty products, women's
shoes and handbags also continued to perform well, he said.
Nordstrom's same-store sales leapt 21% when 11.1% was expected,
with its Anniversary Sale, part of which was moved into August,
aiding the boost. For the months of July and August, which
encompass the entire sale, same-store sales rose 8.4%.
Gap posted a 9% increase in August same-store sales, when a 5.4%
increase was expected. All three of its North American brands--Gap,
Banana Republic and Old Navy--reported growth, including a 12% rise
at Old Navy, while international same-store sales fell 2%, short of
the 0.6% growth expected. Chief Executive Glenn Murphy said the
company "drove strong back-to-school sales, particularly at Old
Navy."
Kohl's Corp.'s (KSS) same-store sales rose 3.4% when 1.9% was
expected. This was Kohl's best monthly showing since October,
except when it received a boost from Easter-time sales. August's
sales reflect "improvement in our merchandise content, inventory
levels and marketing strategies," Chief Executive Kevin Mansell
said. All regions and lines of business reported higher sales for
the month, with footwear, men's and children's being the
best-performing categories, the company said.
Limited Brands Inc. (LTD) reported same-store sales rose 8%,
almost twice the 4.2% that was projected and continuing a streak of
outdistancing expectations. The retailer was helped by strong sales
at its Victoria's Secret chain, as it usually is.
Costco Wholesale Corp. (COST) posted a 6% rise in U.S.
same-store sales minus gasoline when 5% was expected.
The 17 U.S. retailers that post monthly same-store sales
reported 6.1% growth for the month, according to Thomson Reuters.
The figure is preliminary because Zumiez Inc. (ZUMZ) is expected to
report later Thursday. The August figure compares with 4.9% in the
year-earlier month and was the first time that all but one retailer
beat expectations.
Teen retailer Wet Seal Inc. (WTSLA), which analysts said has
been missing on fashion trends, posted an 18.3% decline in
same-store sales, when a 17% drop was expected. Wet Seal said that
the results were in line with its expectations and that, since the
start of August, the company has returned to "fast fashion
merchandising and has included merchandising to a broader
demographic."
Buckle Inc. (BKE), which also caters to teens, reported a 4.5%
rise in same-store sales when a 0.3% drop was expected. This was
the teen retailer's first reported growth in three months and its
best showing since March.
Teen retailers are a good proxy for back-to-school spending, but
only a sampling of the group still report same-store sales on a
monthly basis so it is hard to get a true reading. In general,
teens have been drifting toward fashion and lifestyle brands and
away from wardrobe basics. "It's a move to the branded surf, skate,
and street fashion and to key fashion looks, typified by the bright
palette and colored denim," said Richard Jaffe, retail analyst at
Stifel Nicolaus.
Average back-to-school spending for a person with school-age
children is projected to jump to $688 this year, according to a
National Retail Federation survey last month. That is up from $603
in last year's survey.
Aside from back-to-school buying, August same-store sales show
"there was a desire for newness as adults looked to refresh their
wardrobes," said Nancy Liu, retail strategist at Kurt Salmon.
Stage Stores Inc. (SSI), a regional department store chain which
operates stores in generally smaller locales in the U.S., reported
a comparable-store sales rise of 6.5%, more than twice the 3% that
was expected. "Healthy back-to-school selling, strength in our
missy and other women's categories and strong full-price selling
helped produce our highest comparable-store sales increase for the
month of August since 2004," said Chief Executive Michael
Glazer.
"We feel good about our merchandise assortments, inventory
levels and positive momentum heading into the important fall
season," Mr. Glazer said.
The strong showing came despite word this week that consumer
confidence for August slumped to its lowest level of the year.
"Households continue to worry about a difficult job market, the
European debt crisis, the upcoming 'fiscal cliff,' and the
political wrangling in Washington and in the presidential
campaign," says Steven Wood, chief economist at Insight
Economics.
Write to Karen Talley at karen.talley@dowjones.com.