Stock Market Watch

Retailers Post Better Than Expected Growth in Same-Store Sales (GPS, COST, FRED, ZUMZ, BKE, LTD)

by · Published · Updated


Retailers reported reasonably satisfactory sales trend in June as the U.S. economy continued to show signs of rebound. Besides, much improved weather conditions and sales promotion activities like discounting also helped driving up sales. Retailers sold goods in marked down prices to clear inventories and gear up for the back-to-school season.

The specialty apparel retailer, Gap Inc. (NYSE: GPS) said same-store-sales rose 7% in June, which exceeded analysts’ consensus estimate. Gap Stores posted same-store-sales growth of 5% against analysts’ expectation for 7% increase.  Same-store-sales at Banana Republic stores fell 1% while analysts’ estimate was for 0.7% gain. However, same-store-sales at Old Navy soared 13%, comfortably ahead of analysts’ expectation for 5.4% growth.

The warehouse club chain, Costco Wholesale Corporation (NASDAQ: COST) reported that same-store-sales rose 6% in June (excluding impact of increase in fuel prices) while analysts’ consensus estimate was for 5.4% increase.

The merchandise retailer, Fred’s Inc. (NASDAQ: FRED) reported that same-store-sales soared 4.5% in June, beating the Street’s expectation was for 1.1% growth. The Company said that results bettered company’s own expectations. Increase in customers’ traffic and higher average billing per customer helped pushing sales, said the retailer.

A data compiled by Thomson Reuters showed that same-store-sales of nine prominent retailers rose 5.9% in June, on average, while analysts’ expectation was for a growth of 4.8%, having rose 2.6%, in the same period of last year.

Nevertheless, there were few exceptions who failed to match expectations.

Zumiez Inc. (NASDAQ: ZUMZ) reported same-store-sales growth of 1%, missing analysts’ estimation of 2% growth. The Buckle Inc. (NYSE: BKE) posted 3.4% growth while Street’s expectation was for 3.7% growth.

L Brands Inc. (NYSE: LTD) reported flat sales while expectation was for 2% growth.








More Posts by this author

edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

Tags:

Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

You may also like...