Specialty retailer Gap Inc. (GPS) Thursday reported a 2% increase in comparable store sales for the month of December, while Ross Stores, Inc. (ROST) reported a 12% increase in same store sales. Mall-based specialty retailer Aeropostale, Inc. (ARO) also reported a 10% increase in December same store sales.
San Francisco-based Gap's comparable store sales for December grew 2%, compared with a 14% decrease last year. Net sales for the five-week period rose 5% to $2.02 billion from $1.93 billion in the previous year.
Comparable store sales at Gap North America increased 1%, compared with a 12% decrease in the prior year. Banana Republic North America's comparable store sales dropped 3%, compared to a 15% decline last year. Old Navy North America recorded a 7% increase in comparable store sales versus a 16% decrease in the year-earlier period. Internationally, comparable store sales were down 1%, compared with a 5% decrease a year ago.
For the 48-week period ended January 2, Gap's comparable store sales decreased 4% compared with an 11% decrease last year. Year-to-date, net sales were $13.40 billion, down 3% from $13.77 billion in the year ago period.
Commenting on the results, Sabrina Simmons, chief financial officer of Gap said, "We're pleased that our planned promotions and holiday assortments allowed us to compete effectively while delivering merchandise margins significantly above last year."
In November, Gap posted flat comparable store sales versus a 10% decline in the prior-year period. Total net sales for November increased 2% to $1.42 billion from $1.39 billion last year.
Gap, which operates more than 3,100 stores, added that it will report January sales on February 4, 2010.
Off-price retail chain Ross Stores, Ross Stores said its December same store sales were well ahead of forecast, up 12% over the prior year. Sales for the month increased 16% to $934 million from $802 million last year.
Pleasanton, California-based retailer's comparable store sales for the eleven months ended January 2, increased 6% compared to the same period last year. Sales for the eleven months period totaled $6.773 billion, up 11% from $6.121 billion in the comparable period.
Ross Stores noted that December benefited from strong traffic trends as customers continued to respond favorably to the bargains throughout its stores. The company added that shoes, home and dresses remained the strongest merchandise categories in December, while the Northwest and Southeast were the top performing regions.
In November, Ross Stores' same-store sales growth was 8%. Sales for the four weeks ended November 28, advanced 12% to $635 million from $568 million in the same month previous year.
Looking ahead, Ross Stores raised its fourth quarter earnings forecast to a range of $1.14 to $1.16 per share, a 50% to 53% increase over the same period last year. The company added that the updated forecast also reflects its expectations for January same store sales to grow 6% to 7%, up from prior projection for a 4% to 5% gain.
On an average, six analysts polled by Thomson Reuters expect the company report earnings of $0.83 per share for the fourth quarter. Analysts' estimates typically exclude special items.
New York-based Aeropostale posted a 10% increase in same store sales for the month of December, compared to a 12% increase in the year-ago period. Sales for the month grew 17% to $460.8 million from $392.7 million a year earlier.
Year to date, same store sales increased 10%, compared to a 8% increase last year. Total net sales for the year-to-date period rose 18% to $2.118 billion from $1.789 billion in the prior year.
Aeropostale stated that its merchandise margins for the month increased significantly over last year and that its inventories remain well controlled and on plan. The company believes it is very well positioned as it heads into the spring selling season.
In November, Aeropostale reported a 7% increase in same-store sales. The company's net sales for November rose 14% to $228.0 million from $200.9 million in the same month last year.
Following its strong performance in December, Aeropostale raised its fourth quarter earnings forecast to a range of $1.33 to $1.34 per share, from the previously issued guidance of $1.20 to $1.24 per share. The revised guidance represents a 32% to 33% increase over earnings of $1.01 in the fourth quarter last year.
On an average, 30 analysts polled by Thomson Reuters expect the company to report earnings of $1.22 per share for the fourth quarter.
GPS is currently trading at $20.49 per share, down 2.61%, on the New York Stock Exchange. In the 52-week period, Gap shares have been trading in a range of $9.56 to $23.36.
ROST is currently trading at $46.05 per share, up 4.33%, on the Nasdaq.
ARO is currently trading at $34.44 per share, down 0.29%, on the New York Stock Exchange.
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