US retailers reported Thursday monthly sales performances of stores open for at least a year. Almost all, including Limited Brands, Target and Macy's, saw increases in September comparable store sales, with exceptions being Gap, Wet Seal, and JC Penney. Results were also largely better than analysts' estimates. Many retailers also lifted or reaffirmed their third-quarter earnings forecasts, with only Kohl's trimming its guidance.
The month of September saw last minute shoppers hunting for back-to-school bargains, with some sales pushed into the month due to Hurricane Irene in late August. However, sales were negatively impacted by the volatile stock market and broad-based economic concerns, including European debt crisis, that may have restricted customers desire to spend more.
September is the fag end of the all-important back-to-school shopping season, the second-largest sales period next to Christmas.
However, Christmas holiday retail sales during the months of November and December are expected to rise only 2.8 percent to $465.6 billion, according to a forecast released Thursday by the retail industry trade group the National Retail Federation or NRF. This growth will be just more than half of last year's 5.2 percent growth during the same period, but will be marginally higher than the ten-year average Christmas holiday sales growth of 2.6 percent, NRF revealed.
Comparable-store sales or comps is a key retail industry performance metric to gauge activity at store locations that have been open for at least a year.
Apparel retailer Limited Brands, Inc. (LTD: News ), the operator of Victoria's Secret and Bath & Body Works chains, said its September comparable store sales rose 11 percent, higher than the Street expectations of a 4.6 percent growth, reflecting the continued strength of its Victoria's Secret Stores brand.
The Columbus, Ohio-based retailer of women's apparel, beauty and personal care products also posted September net sales of $818.6 million, up from $735.8 million last year.
Another specialty apparel retailer Gap, Inc.'s (GPS) September comps were down 4 percent, including the associated comparable online sales this year, with Gap International continuing to pull it down. The Street was looking for a 3.8 percent decline.
San Francisco, California-based Gap's September net sales edged up to $1.35 billion from $1.34 billion in the prior-year month.
"While there were some bright spots across our brands and business units, we're clear and focused on the steps necessary to improve our business performance going forward," Gap Chairman and CEO Glenn Murphy noted.
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