Retailers get a reprieve in February
Nonetheless, as retailers reported mixed February sales results today, it was clear that consumers struggling with high gas and food prices and a slumping housing market weren't splurging and still focused on necessities. Among the weak performers were apparel stores Limited Brands Inc. and Wet Seal Inc. But analysts were hopeful.
"This is giving a glimmer of hope to retailers," said Ken Perkins, president of RetailMetrics LLC, a research company in Swampsott, Mass. "Results are coming in better than expected. But certainly,consumers are not knocking down the doors."
According to a tally by Thomson Financial, 12 retailers beat rather pessimistic forecasts, while 6 merchants turned in results that missed expectations. The tally is based on same-store sales, or sales at stores open at least a year, and are considered a key indicator of a retailer's health.
Wal-Mart reported a 2.6 percent gain in same-store sales. Analysts surveyed by Thomson Financial expected a 1.1 percent gain. The company said electronics, groceries and health items helped boost sales.
Limited Brands struggled with a 9 percent decline in same-store sales, though it was better than the 11 percent decrease that Wall Street expected. AnnTaylor Stores Corp. reported a 1.7 percent decline in same-store sales, beating forecasts for a 3.6 percent dip.
Pacific Sunwear of California Inc. said same-store sales rose 6 percent in February. Analysts expected a 0.4 percent decline.
Wet Seal Inc. posted an 8.2 percent decline, worse than the 2.2 percent decline projected by Wall Street analysts.
On Wednesday, Saks Inc., which operates Saks Fifth Avenue, reported a 3.4 percent gain; analysts had expected sales to be unchanged from the year-ago period.
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