US retailers reported Thursday monthly sales performances of stores open for at least a year. Almost all, including Limited Brands, Target and Macy's, saw increases in September comparable store sales, with exceptions being Gap, Wet Seal, and JC Penney. Results were also largely better than analysts' estimates. Many retailers also lifted or reaffirmed their third-quarter earnings forecasts, with only Kohl's trimming its guidance.
The month of September saw last minute shoppers hunting for back-to-school bargains, with some sales pushed into the month due to Hurricane Irene in late August. However, sales were negatively impacted by the volatile stock market and broad-based economic concerns, including European debt crisis, that may have restricted customers desire to spend more.
September is the fag end of the all-important back-to-school shopping season, the second-largest sales period next to Christmas.
However, Christmas holiday retail sales during the months of November and December are expected to rise only 2.8 percent to $465.6 billion, according to a forecast released Thursday by the retail industry trade group the National Retail Federation or NRF. This growth will be just more than half of last year's 5.2 percent growth during the same period, but will be marginally higher than the ten-year average Christmas holiday sales growth of 2.6 percent, NRF revealed.
Comparable-store sales or comps is a key retail industry performance metric to gauge activity at store locations that have been open for at least a year.
Apparel retailer Limited Brands, Inc. (LTD), the operator of Victoria's Secret and Bath & Body Works chains, said its September comparable store sales rose 11 percent, higher than the Street expectations of a 4.6 percent growth, reflecting the continued strength of its Victoria's Secret Stores brand.
The Columbus, Ohio-based retailer of women's apparel, beauty and personal care products also posted September net sales of $818.6 million, up from $735.8 million last year.
Another specialty apparel retailer Gap, Inc.'s (GPS) September comps were down 4 percent, including the associated comparable online sales this year, with Gap International continuing to pull it down. The Street was looking for a 3.8 percent decline.
San Francisco, California-based Gap's September net sales edged up to $1.35 billion from $1.34 billion in the prior-year month.
"While there were some bright spots across our brands and business units, we're clear and focused on the steps necessary to improve our business performance going forward," Gap Chairman and CEO Glenn Murphy noted.
Specialty retailer to young women, Wet Seal, Inc. (WTSLA) stated that September comps edged down 0.3 percent and missed analysts' estimate for a 3.8 percent growth. Based on brands, the Foothill Ranch, California-based company's September comparable store sales were flat at Wet Seal and it was a 2.2 percent decline at Arden B.
However, the company's total net sales grew 4.8 percent to $53.6 million from last year, with Wet Seal sales increasing 4.6 percent and Arden B sales growing 5.9 percent. Meanwhile, e-commerce sales decreased 22 percent over last September.
"While our overall sales results were below our expectations for the month, we were pleased to generate improved merchandise margins in both divisions versus the prior year," CEO Susan McGalla said in a statement.
Wet Seal continues to expect earnings for the third quarter in a range of $0.05 to $0.06 per share, but anticipates comparable store sales to be slightly below the initial guidance of positive mid single-digits. Analysts, polled by Thomson Reuters, expect the company to earn $0.06 per share.
Among discount retailers, Minneapolis, Minnesota-based Target Corp. (TGT) reported a 5.3 percent increase in comparable store sales for the month, topping analysts' expectations of a 3.9 percent growth. Total monthly sales also grew 6.5 percent to $5.92 billion from the prior-year month.
"We experienced strong sales results throughout the month and across a broad array of merchandise categories, demonstrating Target's ability to deliver on both sides of our "Expect More. Pay Less" brand promise and generate strong financial performance even in this soft economic environment," Target Chairman, President and CEO Gregg Steinhafel said.
Off-price retailer TJX Cos., Inc. (TJX) reported that September comps were up 4 percent and total sales increased 6 percent from last year to $2.2 billion. Analysts' were looking for a 3.2 percent growth in comps.
"It's important to note that our September sales were not promotionally driven and merchandise margins in September remained solid," CEO Carol Meyrowitz said.
TJX also said it continues to anticipate third-quarter earnings in a range of $1.03 to $1.07 per share. Street is looking for earnings of $1.07 per share.
Another off-price retailer Pleasanton, California-based Ross Stores, Inc. (ROST) said September same-store sales increased 5 percent, while Street analysts' projected a growth of 3.4 percent. Total sales rose 9.4 percent to $726 million from a year ago.
The company raised its earnings forecast for the third quarter to a range of $1.16 to $1.18 per share from the prior guidance in the range of $1.00 to $1.04 per share. Analysts are looking for earnings of $1.07 per share.
Meanwhile, Ross continues to anticipate October same-store sales growth of 1 to 2 percent, fourth-quarter comparable-store sales growth of 2 to 3 percent and fourth-quarter earnings in the range of $1.53 to $1.59 per share. Street anticipates earnings of $1.57 per share.
Among department store chains, Cincinnati, Ohio-based Macy's (M) said same-store sales for September increased 4.9 percent over last year, higher than the 4.4 percent growth analysts were expecting, and net sales grew 5.3 percent to $2.30 billion from a year ago. Online sales (macys.com and bloomingdales.com combined) were up 43.2 percent in September.
Looking ahead, Macy's now expects same-store sales growth for the third quarter at the top-end of the prior guidance of 4 to 4.5 percent. it continues to anticipate same-store sales growth for the fourth quarter in the range of 4 to 4.5 percent.
Menomonee Falls, Wisconsin-based Kohl's Corp. (KSS) reported a 4.1 percent increase in total comps for the month, while the Street expected only a 2.2 percent increase. Total sales also rose 5.8 percent year-over-year to $1.63 billion.
"As expected, the Jennifer Lopez and Marc Anthony launches - the largest launches in our history - and the opening of 31 new stores, generated excitement which resulted in improved customer traffic," Chairman, President and CEO Kevin Mansell noted.
Meanwhile, Kohl's trimmed its earnings guidance for the third quarter to a range of $0.73 to $0.79 per share from the prior forecast of $0.76 to $0.82 per share. Analysts are looking for earnings of $0.79 per share.
Fiscal 2011 earnings are now expected to be in the range of $4.34 to $4.49 per share, down from previous guidance of $4.45 to $4.60 per share. Street is looking for earnings of $4.51 per share.
Another department store chain, Plano, Texas-based J.C. Penney Co., Inc. (JCP) reported that its comparable-store sales for September edged down 0.6 percent, missing analysts' expectations for a 0.6 percent growth. Total sales also declined 3.6 percent from last year to $1.43 billion.
For the third quarter, J.C. Penney continues to expect adjusted earnings in a range of $0.10 to $0.15 per share, with analysts expecting the company to earn $0.16 per share.
Fashion specialty retailer Nordstrom, Inc. (JWN) reported a 10.7 percent rise in same-store sales for September, much higher than analysts' estimate of a 5.2 percent rise. Preliminary total retail sales for the month were $943 million, up 16.3 percent from last year.
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June 19, 2026 16:46 ET Major central banks continued to dominate the economic news flow this week too, led by the Federal Reserve, as they announced their latest policy decisions. The Federal Reserve policy session was in focus as it was the first to be led by the new chief Kevin Warsh. In Europe, central banks of the U.K. and Switzerland announced their rate decisions. In Asia, the Bank of Japan drew attention for its policy moves, while data out of China threw some light on the state of the economy.