Home

By ANNE D'INNOCENZIO, AP Business Writer

NEW YORK - A flood of new fashions helped lift many of the nation's retailers to their fourth straight month of solid sales during March. Wal-Mart Stores Inc., Limited Brands, J.C. Penney Co. Inc., and Nordstrom Inc. were among the retailers with better-than-expected results.

The robust results released by retailers Thursday cut across industry sectors, with many long-struggling department stores also enjoying a sales boost. The few exceptions included Sears, Roebuck and Co. and Kohl's Corp., whose sluggish results lagged analysts' expectations.

"The month will be the strongest of the year so far," said Michael P. Niemira, chief economist at The International Council of Shopping Centers.

But he cautioned, "Everything is moving in the right direction, but there are a number of stumbling blocks." Rising gasoline prices and a still weak labor market, while improving, could stall retailers' momentum, he said.

The International Council of Shopping Center-UBS sales tally was up 7.0 percent in March, compared with a 0.2 percent decline a year ago. 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.

Department stores and mall-based apparel stores reported consumers responded enthusiastically to new fashions. Bright colors like hot pink and lime green and new career lines from Tommy Hilfiger and Calvin Klein, aimed at department stores, helped draw shoppers.

Niemira added that warmer weather helped retailers earlier in the month, although sales decelerated in the last week when temperatures fell.

March was the fourth month in a row that retailers had strong sales. After reporting same-store sales of 4.3 percent in December, so far in 2004, stores have done even better, averaging about 6.6 percent. Niemira said the January-March sales performance is the industry's best performance since the July-September 1999 period, whose same-store sales averaged 6.8 percent.

The release of retailers' results coincided with a Labor Department (news - web sites) report that new claims for unemployment benefits dropped last week to the lowest level in more than three years. For the work week ended April 3, new applications filed for jobless claims declined by a seasonally adjusted 14,000 to 328,000.

Last week, the government reported a better-than-expected increase in new jobs.

Tax refunds and low interest rates, which have spurred more mortgage refinancing, have given consumers the extra cash to spend in the short term. But whether that spending pace will remain strong in the second half once these factors start to wane remains to be seen.

Frank Badillo, senior retail economist at Retail Forward, a consulting firm in Columbus, Ohio, was more optimistic, saying he doesn't see "a lot to hold consumers back."

"We're in a sustainable rebound," he said.

Wal-Mart announced a 6 percent gain in same-store sales, while analysts surveyed by Thomson First Call expected 5.7 percent. Total sales rose 14 percent.

Rival Target Corp. had a 7.3 percent gain in same-store sales, besting Wall Street's projections of 6 percent. Total sales were up 13.2 percent.

High-end stores like Nordstrom and Neiman Marcus Group, the early beneficiaries of the economic recovery, extended their winning streak. Nordstrom posted a 15.9 percent gain in same-store sales, well exceeding the 8.1 percent expected by analysts. Total sales increased 19.8 percent.

Neiman Marcus had a 25.7 percent gain in same-store sales, surpassing the 15.4 percent estimate. Total sales were up 25.8 percent.

Saks Inc., which operates Saks Fifth Avenue and traditional department stores including Proffitt's, said same-store sales were up 11.5 percent. Analysts expected 7.5 percent. Total sales were up 13.1 percent.

Federated Department Stores Inc., citing strong sales in career apparel and accessories, reported a 6.8 percent gain in same-store and total sales in March. Analysts expected a 5.8 percent increase.

J.C. Penney said same-store sales in its department store business rose 11.4 percent. Analysts expected a 7.3 percent gain. Total sales were up 10.8 percent.

But Kohl's reported a 0.9 percent same-store sales decline. Analysts had expected a 2.9 percent gain. Total sales were up 9.2 percent.

Sears' same-store sales results in its domestic business were up 0.1 percent, a bit below the 0.3 percent Wall Street expected. Total domestic sales were down 1.3 percent.

Gap reported an 8 percent increase in same-store sales, beating Wall Street's projections of 5.9 percent. Total sales were up 10 percent.

Selected same-store sales for March for other leading retailers:

_ AnnTaylor Stores Corp., same-store sales rose 12 percent; total sales were up 23.6 percent.

_ Hot Topic, Inc., same-store sales rose 3.9 percent; total sales were up 28 percent.

_ Limited, same-store sales rose 15 percent; total sales rose 13 percent.

More News:

4-08-04 Jobless Claims Plunge Last Week

4-08-04 April 15 Is Not the End of Tax Concerns

4-08-04 Beware of shady credit-fix schemes

4-08-04 Investors' concern shifts to Iraq war

4-08-04 L.A. couple sues IRS to win tax deduction

4-08-04 Last-Minute Tax Returns - Get That Shoebox Ready

4-08-04 Manufacturer tax cut snagged on partisan debate

4-08-04 Paying Taxes By Credit Card Off To A Slow Start

4-08-04 Treasuries Wilt at Signs of Job Strength

4-08-04 US manufacturing outlook rises to record high

4-08-04 U.S. mortgage rates unchanged on Thursday

Financial News