Weather, consumer confidence boost Feb. dept. store sales
NEW YORK -- Sales at Macy’s, JCPenney and Kohl’s surpassed analysts’ estimates in February amid gradually moderating temperatures and rising consumer confidence. However, analysts warned that a late Easter and rising gasoline prices could impact sales going forward.
Confidence among U.S. consumers rose in February to the highest level in three years, according to a Thomson Reuters/University of Michigan index, as a drop in unemployment helped overcome concern over rising food and fuel costs.
JCPenney Co. said that its same-store sales in February increased 6.4%, with women's apparel and accessories, children's apparel, and fine jewelry reporting the strongest results for the month.
Geographically, JC.Penney said all regions experienced comparable-store sales gains, with the northeast and southwest regions delivering the best performances.
Macy’s reported a 5.8% increase in its Feburary same-store revenue, topping analysts’ estimates of a 3.7% increase. Macy’s results were boosted by strong growth in its online segment, which rose 30.9% in the month.
“Our fiscal 2011 started off with a stronger-than-expected February performance at both Macy’s and Bloomingdale’s. Consumer reaction to new spring merchandise has been encouraging,” said Terry J. Lundgren, chairman, president and CEO of Macy’s.
Kohl’s said its sales increased 5.0%, topping the 4.1% increase analysts expected. Mens, womens and childrens were the top performers, registering high-single digit increases.
In other same-stores sales results for February:
Saks’ sales jumped 15.3%, buoyed by strong sales of items such as shoes, handbags and men's and women's clothing. Its performance easily topped the 4.9% increase the Street expected.
TJX Cos. reported a 3% rise in sales on top of double-digit increases last year.
Nordstrom's sales were up 7.3%, easily beating Wall Street's expectation of a 4.2% increase. The figure climbed 9.6% for Nordstrom, which includes its stores and direct sales. The lower-price Nordstrom Rack division reported a 1.6% increase.
The Bon Ton reported a 0.5% decrease in sales as its key market areas were impacted by snowstorms.
Fred's said its sales rose 0.9%, below analysts' expectations for the discount store operator. The retailer said traffic earlier in the month was affected by harsh weather.
Duckwell-Alco reported a 3.1% rise in sales.