New York, NY, Feb. 5--Record-breaking cold temperatures and clearance sales helped lift January sales above expectations for many of the nation's retailers, including merchants who lagged behind their competitors in recent months.
The robust January performance followed what was a respectable holiday season for many stores.
"This is definitely a lot stronger than expected," said Michael P. Niemira, chief economist at the International Council of Shopping Centers. "And it is across the board. This is a taste of the kind of performance we're likely to see in 2004."
He added that the frigid weather was more of a "positive, than a negative," helping to boost sales of winter apparel and other cold-weather items.
Niemira expected the International Council of Shopping Centers-UBS sales tally of about 80 retailers to be up between 5.5% and 6% for the month, much better than the 4% to 4.5% gain he previously expected.
The tally is based on what the industry calls same-store sales, those from stores open at least a year. They are considered the best measure of a retailer's health.
Wal-Mart Stores Inc., the world's largest retailer, reported January same-store sales rose 5.7%. The results exceeded the 4.1% estimate of analysts surveyed by Thomson First Call. Total sales were up 14.3%.
Its rival, Target Corp., also posted better-than-expected results, generating a same-store sales increase of 5.1%. Wall Street had expected a 4.7% gain. Total sales were up 11.9%.
Costco Wholesale Corp. reported a same-store sales gain of 13%, beating the 8.6% estimate from Wall Street. Total sales were up 16%.
Meanwhile, mid-priced department stores that have been languishing also benefited.
Kohl's Corp., which has suffered with same-stores sales declines over the past few months, recorded a 0.3% gain. The figure exceeded the 1.1% decline that analysts had expected. Total sales rose 14.5%.
J.C. Penney Co. Inc.'s department store group recorded a 6.4% gain in same-store sales, exceeding the 2.3% estimate of analysts polled by Thomson First Call. Total sales increased 25.7%.
On Tuesday, Federated Department Stores Inc., raised its fourth-quater earnings outlook and announced a larger-than expected 5.5% gain in same-store sales in January. Analysts had expected a modest increase of 0.3%. Total sales were up 5.1%.
Upscale retailers, such as Nordstrom Inc. and Neiman Marcus Group Inc., again pleased Wall Street. Nordstrom posted an 8.7% gain in same-store sales, exceeding the 5.6% gain expected by Wall Street. Total sales were up 13.5%.
Neiman Marcus Group recorded a 12.8% gain in same-store sales, surpassing the 7.4% estimate from Wall Street. Total sales were up 15.4%.
Mall-based apparel retailer Limited posted a 23% increase in same-store sales, well exceeding the 19.9% gain estimated by Wall Street. Total sales were up 20%.
