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US Retail Sales Firm Up in July

Many retailers top analysts' expectations.

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By: Tom Branna

US Retail Sales Firm Up in July

US retail sales started to heat up in July, as Macy’s Inc., Gap Inc., Limited Brands Inc. and others posted better sales results than anticipated. For example, Macy’s Inc. had been expected to post a 3.2% increase in comparable-store sales for the month, but instead checked in with a 4.1% gain.

Meanwhile, Gap’s July comp increase was 10%, nearly triple the 3.8% gain expected by analysts. Gap North America trended upward 6.4% with Banana Republic and Old Navy up 5.8 and 2.5%, respectively.

Strong throughout the second quarter, Limited Brands remained expansive in July as corporate comps and those for its Victoria’s Secret unit both rose 12%, twice the expected pace, and Bath & Body Works jumped 17%.

Stage Stores Inc. was up 5.3% for the month versus the 2.2% growth expected, while The Bon-Ton Stores Inc. reported a month of flat comps. Stein Mart Inc. exceeded the 2.5% increase analysts expected, instead reporting a 2.8% pickup.

Expected to drop 1.2%, The Buckle Inc.’s decline was a smaller 0.1%, while Zumiez Inc.’s growth of 7.5% fell short of the 8.5% upward swing expected. The Wet Seal Inc., ending a difficult quarter marked by the departure of its ceo, reported a 15.6% decline versus the 14% slip expected.

Target Corp. was up 3.1% for the month versus an anticipated 2.7% growth rate.

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