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Confidence returns to US shoppers

By FashionUnited

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Generalized stronger sales in October for the majority of traded US retailers

has helped the idea of shoppers starting to recover their confidence in a better prospect for the national economy. Main players Thursday where Macy’s, Gap, TJX and Kohl’s.

“We were particularly pleased with TJX Europe’s 11 percent comp sales increase, achieved over a 5 percent increase last year, as we continue to see increasingly strong trends in this important growth vehicle,” said CEO Carol Meyrowitz after releasing the monthly sales performance.

TJX (TJX) said same-store sales grew 7 percent, against expectations for a 4.3 percent rise. The company raised its third quarter and full-year guidance. More surprising: much of that strength came in Europe. The stock was trading up, adding 2.2 percent right before the market close.

High-end department store Kohl’s (KSS) shares rose 2.7 percent after the company also beat expectations, with 3.3 percent growth, versus estimates of 1.1 percent, published Fox News. However, the company announced that it will no longer report sales on a monthly basis.

Macy's Inc. said Thursday its October same-store sales rose 4.1 percent, beating the 2.9 percent consensus estimate in a Thomson Reuters survey. "We are feeling confident about our prospects for the upcoming holiday season and have increased our sales guidance for the fall season, despite the interruption caused by Hurricane Sandy," said Chief Executive Terry Lundgren.

The company now expects revenue in stores open at least one year to rise 4 percent in the second half of the year, up slightly from prior guidance of a 3.7 percent increase. It expects the figure to rise 4.2 percent in the fourth quarter advanced Bloomberg. For the third-quarter revenue in stores open at least one year rose 3.7 percent and total sales rose 3.8 percent to 6.08 billion dollars, compared to the slightly humbler 6.05 billion increase predicted by analysts. Shares of Macy's Inc. rose 1.45 dollars, or 3.8 percent, to 39.52 dollars in midday trading.

Meanwhile, Gap Inc. October same-store sales also rose, yet less than expected: 4 percent, compared to the estimates of a 5 percent increase in a Thomson Reuters poll. Gap forecast third-quarter profit of 61 cents to 63 cents, including a 2-cent tax credit benefit. Analysts surveyed by FactSet estimated Gap would earn 54 cents a share.

Finally, less positive news for Ross Stores (ROST), which shed 7 percent after posting 4 percent growth, compared to the expected 4.5 percent growth. Ross Stores also raised EPS expectations by a penny confirmed the company in a statement.
FashionUnited