Macy's, Target, Limited, Gap Post Strong Sales Gains in February
Domestic retailers beat analyst estimates en masse this morning as they reported same store sales for the month of February.
Companies such as, Macy's (NYSE: M ), Target (NYSE: TGT ) and Limited Brands (NYSE: LTD ) all reported SSS growth that was higher than analysts were expeting, whereas The Gap (NYSE: GAP ) posted growth where expectations were for a decline. Warmer-than-anticipated weather as well as an improving economy are thought to have helped with getting shoppers to spend more on apparel as they spend more of their time outside.
Recent growth in personal income, which saw a nine-month high for December, may have played a significant role in the rush retailers are reporting. However, given that personal income growth came in at half of the forecast for January at 0.2 percent may lead to a compression of store activity for the month that just started. In addition, not all stores are seeing increased revenues, with Limited Brands reporting an actual decline in net sales for the month, which in light of SSS growth, suggests buyers were not as enthusiastic to visit new stores.
GPS is up $2.51 premarket to $23.36. TGT and M are seeing more modest growths of less than half a percent to $56.69 and $37.97 a share, respectively. LTD is seeing a pullback of 0.23 percent in shares, that are trading at $46.53 ahead of the open.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.