(RTTNews) - In what is likely to be the beginning of an economic recovery, specialty retailers Gap Inc. (GPS: News ), Aeropostale, Inc. (ARO: News ) and Ross Stores, Inc. (ROST: News ) reported healthy same store sales figures for the month of October. Buoyed by the better-than-expected results, Aeropostale and Ross raised their earnings forecast for the third quarter, while Gap said it expects earnings for the quarter to improve about 20% from the previous year.

Gap on Thursday reported increases in comparable store sales and net sales for October. The company's comparable store sales for October increased 4%, compared to a 16% decrease for the same month last year. Total sales for October rose 5% from prior year.

In Gap North America, same-store sales in October dropped 6%, compared to a 14% decline last year. Banana Republic North America posted a growth of 5% in same-store sales, compared to a drop of 17% last year. Comparable store sales at Old Navy North America was up 14%, compared to a negative 20% last year. In International, sales dropped 4%, in comparison with a 5% drop last year.

Gap's net sales were $1.14 billion for the four-week period ended October 31, 2009, up from $1.08 billion for the same period ended November 1, 2008.

For the third quarter, the company's comparable store sales were flat, compared to a decrease of 12% in the third quarter of the prior year. Gap's net sales in the quarter grew 1% to $3.59 billion from $3.56 billion in the previous year. On average, 23 analysts polled by Thomson Reuters expected revenues of $3.53 billion for the quarter.
Gap expects third-quarter earnings per share in the range of $0.42-$0.44, higher than $0.35 per share reported for the third quarter last year. On average, 38 analysts polled by Thomson Reuters expect the company to earn $0.38 per share for the quarter with estimates ranging between $0.34 and $0.43 per share. Analysts' estimates typically exclude special items.

Aeropostale said Thursday that same store sales increased 3% for October, compared to an increase of 1% in the year ago period. Same store sales for the third quarter increased 10%, compared to same store sales increase of 7% last year.

The retailer's total net sales for October increased 9% to $138.8 million from $127.4 million for the four-week period ended November 1, 2008. For the third quarter, total net sales increased 18% to $567.8 million from $482 million in the year ago period. Twenty-six analysts had a consensus revenue estimate of $571.73 million for the quarter.

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