US retailers reported Thursday sales performances for November at stores open for at least a year. Most of them, including Limited Brands, Target, TJX, Ross Stores, Nordstrom and Macy's, reported increases in sales providing a strong start to the holiday season, with exceptions being Kohl's, Gap and JC Penney. The results largely came in higher than analysts' estimates. Notably, Target and Kohl's missed estimates.
The fag end of the month saw strong sales, with the Christmas shopping season officially kicking off on Black Friday, the day after Thanksgiving. Cyber Monday internet sales also aided the results.
In December, most of the retailers anticipate a very competitive and promotional environment as consumers continue to focus on value. Some of them are also hiring additional seasonal workers this holiday season to boost sales.
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 in early October by the National Retail Federation or NRF.
The expected 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 November comparable store sales rose 7 percent, reflecting the continued strength of its Victoria's Secret Stores brand, partially offset by decline at La Senza. The result exceeded Street expectations of a 4.4 percent growth.
The Columbus, Ohio-based retailer of women's apparel, beauty and personal care products also posted November net sales of $872.6 million, down from $893.0 billion last year, due to the sale of its third party apparel sourcing business in early November.
Limited Brands also declared a special dividend of $2 per share, payable on December 23 to shareholders of record at the close of business on December 12.
Another specialty apparel retailer Gap, Inc.'s (GPS) November comparable sales were down 5 percent, including the associated comparable online sales this year, with Old Navy and Gap International continuing to pull it down. Street was looking for a 4.3 percent decline.
San Francisco, California-based Gap's November net sales declined 3 percent to $1.47 billion from $1.51 billion in the prior-year month.
"This is just the start of the holiday selling season and we expect December to remain fiercely competitive and highly promotional. Our brands stand ready to compete at every opportunity to win customers over - in stores and online," Gap's Chairman and CEO Glenn Murphy noted.
Specialty retailer to young women, Wet Seal, Inc. (WTSLA) stated its comparable sales declined 3.1 percent in the month, while analysts estimate was for a 6.8 percent drop. Based on brands, the Foothill Ranch, California-based company's November comparable store sales decreased 1.8 percent at Wet Seal and 11.2 percent at Arden B.
"November comparable store sales results were above plan, driven by better than expected results at Wet Seal," CEO Susan McGalla said in a statement.
The company's total net sales edged up 0.8 percent in the month to $51.1 million from last year, reflecting improved product and compelling promotional strategies during Thanksgiving weekend and throughout November. e-commerce sales declined 18 percent.
Among discount retailers, Minneapolis, Minnesota-based Target Corp. (TGT) reported a 1.8 percent increase in comparable store sales for the month, missing analysts' expectations of a 2.8 percent growth. Total monthly sales grew 3 percent to $6.19 billion from the prior-year month.
"November sales were near the low end of our expectations for the month as we compared against very strong performance last year. As we kicked off the holiday season following Thanksgiving, sales were strongest on Black Friday as guests responded to our midnight opening and compelling prices," Chairman, President and CEO Gregg Steinhafel said.
Off-price retailer TJX Cos., Inc. (TJX) reported that November comps were up 4 percent and total sales increased 4 percent from last year to $2.04 billion. Analysts' were also looking for a 4 percent growth in comps.
"These increases were achieved despite the unseasonably warm weather in November, which hampered demand for cold-weather apparel in the second half of the month," CEO Carol Meyrowitz said.
Another discount retailer Pleasanton, California-based Ross Stores, Inc. (ROST) said November same-store sales increased 5 percent, topping Street estimates for a growth of 3.7 percent. It also came in ahead of the company's expectations for a 2 to 3 percent increase. Total sales rose 10 percent to $765 million from a year ago.
Looking ahead, CEO Michael Balmuth said, "While we are pleased with our above-plan results in November, we still have most of the holiday shopping period ahead of us. As a result, we continue to project comparable store sales gains of 3% to 4% and 1% to 2% for December and January, respectively."
Among department store chains, Cincinnati, Ohio-based Macy's (M) same-store sales for November increased 4.8 percent over last year, higher than the 3.9 percent growth analysts were expecting. Net sales grew 5.3 percent to $2.47 billion from a year ago. Online sales (macys.com and bloomingdales.com combined) were up 49.6 percent in November.
"A strong Black Friday punctuated our very positive sales performance throughout November at both Macy's and Bloomingdale's. This was the first year that Macy's stores opened at 12 midnight on Black Friday...," Chairman, President and CEO Terry Lundgren noted.
Looking ahead, Macy's continues to anticipate same-store sales growth for the fourth quarter in the range of 4 to 4.5 percent, but added it could exceed the guidance if November sales trend continue.
Menomonee Falls, Wisconsin-based Kohl's Corp. (KSS) reported a 6.2 percent decline in total comparable sales for the month, while the Street expected a 2 percent increase. Total sales also decreased 4.5 percent year-over-year to $1.93 billion.
Another department store chain, Plano, Texas-based J.C. Penney Co., Inc. (JCP) reported that its comparable-store sales for November decreased 2 percent, with analysts' expecting only a 1.6 percent drop. Total sales also declined 5.9 percent from last year to $1.74 billion.
Fashion specialty retailer Nordstrom, Inc. (JWN) reported a 5.6 percent rise in same-store sales for November, higher than analysts' estimate of a 5 percent rise. Preliminary total retail sales for the month were $910 million, up 11.6 percent from last year.
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