Ross, Gap, Macy’s…August suits American retailers

This year, back to school sales are more suitable than

ever for the main American fashion retailers, including the likes of Macy’s, Ross, Nordstrom or Gap. Many apparel groups have posted strong sales in August, boosted by back-to-school buying.

Ross Stores, Inc. has reported that sales increased 13 percent to 747 million dollars for the four weeks ended August 25, 2012, up from 659 million dollars the company reported a year ago. Comparable store sales for the month grew 8 percent on top of a 4 percent increase last year.

For the first seven months of the year, sales totaled 5.445 billion dollars, a 13 percent to be added to the 4.823 billion dollars in sales for the same period.  Michael Balmuth, Vice Chairman and Chief Executive Officer, commented, "We are pleased with August same store sales that were ahead of our expectations. Our ability to deliver a wide array of name brand bargains for back-to-school shoppers drove healthy traffic to our stores during the month. Looking ahead, we continue to forecast same store sales gains of 2percent to 3percent for September and 3percent to 4percent for October."

In the same vein, Target's same-store sales rose 4.2 percent, adding to the 3.1percent that was expected, with stronger sales in the second half of the month as the weather cooled in parts of the U.S.

Also Macy's same-store sales grew 5.1 percent when 3.6 percent was projected. "Sales exceeded our expectations in August, and the strength was broad-based across merchandise categories, geographies and channels," Chief Executive Terry Lundgren said.  

For Nordstrom, the sales’ leapt was 21 percent, as opposed to the expected 11.1 percent. Kohl's Corp.'s (KSS) same-store sales rose 3.4 percent instead of the estimated 1.9 percent.  This was Kohl's best monthly showing since October, except when it received a boost from Easter-time sales, reminded ‘FoxBusiness’.  Limited Brands Inc. (LTD) grew its store sales two times the projections (+8 percent).

Gap was closing the American chapter of positive news with a 9 percent increase in August same-store sales, when a 5.4 percent increase was expected. All three of its North American brands--Gap, Banana Republic and Old Navy--reported growth.