Retail Sector Mixed On September Sales Reports

Retail stocks were a mixed bag Thursday amid diverging September sales reports and the backdrop of the larger market's continued sell-off.

Cato Corp. CATO posted September same-store sales growth of 5 percent, beating estimates. The Charlotte, North Carolina-based apparel chain said it expects third-quarter earnings "at the higher end" of its guidance range of $.08 to $0.13 a share. Wall Street expects earnings of $0.15 a share.

Cato shares were off 1.6 percent Thursday compared with a with a 1.9 percent decline for the Standard and Poor's 500.

Weighing on apparel retailers is news from Gap Inc. GPS of flat September growth and the retirement announcement from its Chief Executive Glen K. Murphy.

Gap traded down more than 12 percent Thursday afternoon.

Costco Wholesale Corp.'s COST September same-store sales grew 4 percent, missing expectations, although shares of the Issaquah, Washington-based company were nearly unchanged Thursday.

Kearney, Nebraska-based The Buckle Inc. BKE beat expectations, posting September same-store sales growth of 2.2 percent; its shares fell nearly 2 percent.

Rite Aid Corp. RAD, Camp Hill, Pennsylvania, posted September same-store sales of 5.1 percent including front-end sales growth of 2.3 percent and pharmacy growth of 6.3 percent. Rite Aid shares were off a half-point.

Walgreen Co. WAG posted 9.4 percent growth in same-store sales including 2.2 percent at the front end. Shares of the Deerfield, Illinois-based company were almost unchanged.

Zumiez Inc. ZUMZ, a Lynnwood, Washington-based sportswear retailer, said same-store September sales grew 6.6 percent. Zumiez shares were up Thursday 6 percent.