Retailers Report Sales Gains

Limited Brands, the parent company of Victoria’s Secret, and Costco Wholesale were among several American retail chains on Thursday to report stronger-than-expected sales for February, as consumer confidence about an improving job market offset the impact of higher taxes.

After a difficult January, when shoppers first felt the effect of a payroll tax increase that lowered take-home pay by 2 percent, at least some retailers got a little relief last month.

“By and large, the middle class is just shaking off the intractability in Washington and feeling better about shopping,” said Joel Bines, managing director of the retail practice at AlixPartners, a consulting firm.

At the same time, several major retailers, including Target, Macy’s, Nordstrom and Kohl’s, stopped reporting monthly sales this month, making the monthly figures a less significant indicator of economic health.

Also, February is the smallest month of the year for retail sales, falling between the holiday season and the spring, when many shoppers start replenishing their wardrobes.

Costco reported a 6 percent increase in sales at stores open at least a year, helped by higher gasoline prices as well as strong sales of fresh food and consumer electronics. Wall Street analysts were expecting a 5.1 percent gain, according to Thomson Reuters.

Limited’s 3 percent increase in sales at stores open at least a year also came in higher than expected. The Victoria’s Secret lingerie chain led the gains, suggesting that shoppers were still willing to spend on some nonessential items.

TJX, whose Marshalls and T.J. Maxx stores have drawn shoppers looking for designer brands at big discounts, reported a better-than-expected 1 percent gain. Sales would have been higher if not for snowstorms early in the February, the company said.

Ross Stores, a TJX competitor, also said its business improved as February moved on. Delays in tax refunds hurt business earlier in the month, it said.

In total, 13 American retailers are reporting February sales results this week. Gap Inc. plans to report its sales in the afternoon.

Excluding drugstore chains Walgreen and Rite Aid, whose sales are heavily weighted toward prescription drugs, Wall Street analysts expected same-store sales increases at the other 11 retailers to average 3.3 percent.

Chains that cater to teenage shoppers, who have much less discretionary income, struggled last month. The Buckle and Zumiez both reported declines in comparable sales for February.

Abercrombie Fitch and American Eagle Outfitters no longer report monthly sales but have said business will be slow this quarter, which began last month.

Article source: http://www.nytimes.com/2013/03/08/business/economy/retailers-report-sales-gains.html?partner=rss&emc=rss