February proved a positive month for the majority of US apparel retailers still reporting their monthly comparable sales, but one reverted to its negative trend after a surprise uptick last month which saw it narrowly avoid its 31st consecutive monthly same-store sales decline.
According to research firm Retail Metrics, February same-store sales came in better than expected rising 9.6% against a positive economic backdrop.
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This compares to expectations of a 7.4% gain and is up from 1.8% a year ago. January saw a 5.7% increase following the largest holiday sales increase in 12 years, while December saw a 10.3% increase.
Retail Metrics president Ken Perkins said while the US economy has churned out several softer numbers of late, it is still on “very solid” footing. He added weekly initial jobless claims touched a low last week not seen since 1969, and noted personal income increased during the month.
Winners and losers
While two of the apparel retailers still reporting monthly comparable store sales posted increases in February, one reverted to its negative trend.
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By GlobalDataThis was Nebraska-based denim specialist The Buckle, which reported its first positive monthly same-store sales gain in two and a half years last month. The company was tipped for a flat February comp against an extremely easy -23.2% year-ago hurdle. For the four weeks ended 3 March, it turned in a 5.3% comp decline, while net sales slipped 2% to $64.0m from $62.8m a year earlier.
Meanwhile, comparable store sales for value-priced fashion and accessories retailer Cato Corporation continued on their negative trend in February with a 5% comp decline. The Charlotte, North Carolina-based chain has now comped negatively for 24 straight months. Net sales, meanwhile, were up 5% to $67.2m.
CEO John Cato said: “February same-store sales were below our expectations. However, inventory levels are in-line due to strong inventory management.”
L Brands, owner of the Victoria’s Secret, Pink and La Senza brands, reported a 3% February same-store sales gain that was right at the mid-point of its guidance for up low-to-mid single digits. Expectations had ticked higher for L Brands in recent days due to fourth-quarter earnings results last week that exceeded analysts’ estimates. The Columbus, Ohio-based chain said net sales were up 11.5% to $853.9m from $765.5m last year.
Speciality apparel and footwear retailer Zumiez, meanwhile, reported its 12th consecutive positive monthly same-store sales increase. The company’s comparable sales increased 9.2% for the four-week period ended 3 March, compared to a drop of 3.1% in the same period last year. Total sales jumped 23.2% to $63.4m.
