U.S. Retailers Outperform Forecasts

Early reports by big American retailers on Thursday showed November sales were better than expected, buoyed by a strong turnout on Black Friday, the busiest shopping day of the year.

Shoppers appeared to shrug off economic worries, giving a big lift-off to the holiday shopping season. Five of the six retailers tracked by Thomson Reuters that have reported November sales so far have beaten expectations.

Total retail sales for the Thanksgiving weekend reached an estimated $52.4 billion, up from $45 billion last year, according to the National Retail Federation.

Still, many people turned out only for special offers, such as 50 percent off storewide merchandise, so retailers’ profit margins could be under pressure if they continue to resort to deep discounts to entice buying. Many industry watchers said they expected that shoppers under financial stress would hold back after their weekend binge.

Sales at stores open at least a year, or same-store sales, were expected to rise an average of 3.1 percent at 22 chains tracked by Thomson Reuters compared with the same period a year ago. In November 2010, such sales jumped 5.5 percent over the previous year.

Costco said its same-store sales rose 9 percent, topping the 6.5 percent rise analysts expected, due in part to higher gasoline prices.

Limited Brands also surpassed analysts’ predictions. The company, which owns the Victoria’s Secret and Bath Body Works chains, posted a 7 percent increase in same-store sales, compared with the average forecast of just 4.4 percent. Limited also announced that its board declared a special dividend of $2 per share to be paid this month.

Buckle, which sells jeans and other apparel to teens, said its same-store sales rose 6.9 percent, while analysts were looking for a gain of just 4 percent.

Same-store sales at Wet Seal fell 3.1 percent, better than the 6.8 percent decline analysts had expected. The company, whose stores cater to young women, said merchandise margins at its namesake chain over the holiday weekend were “significantly improved,” while its Arden B chain is managing inventories to improve business.

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