Most U.S. retailers on Thursday reported sales increases in May at established stores, reflecting warmer weather and an increase in consumer spending. Warmer weather helped sales of spring merchandise to pick up in May. Sales were also boosted by the May 12 Mother's Day shopping.
The National Retail Federation in April expected spending on Mother's Day gifts to reach about $20.7 billion, with consumers expected to spend an average of $168.94 on Mother's Day gifts, up 11 percent from $152.52 last year.
A report released from the Conference Board on May 28 showed that U.S. consumer confidence increased by much more than anticipated in May, with the consumer confidence index rising to its highest level in over five years.
The consumer confidence index jumped to 76.2 in May from an upwardly revised 69 in April. Economists had expected the index to climb to 71.5 from the 68.1 originally reported for the previous month.
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 L Brands, Inc. (LTD), the operator of Victoria's Secret and Bath & Body Works chains, said its May comparable store sales rose 3 percent on higher sales across all its three brands. This compared to an increase of 6 percent in the year-ago period. Net sales increased 10 percent to $737 million from $671.9 million in the same period last year.
Another teen apparel retailer, Buckle, Inc. (BKE) announced that comparable store net sales for the month of May increased 4.1 percent. Net sales increased 4.2 percent from last year to $72.8 million.
Another specialty retailer of action sports related apparel, footwear, equipment and accessories Zumiez, Inc. (ZUMZ) reported Wednesday that its comparable store sales for May increased 1.1 percent. Total net sales grew 16.7 percent from last year to $43.6 million.
Stein Mart, Inc. (SMRT) also reported an 8.2 percent growth in comparable store sales for the month of May. Total monthly sales grew 3.6 percent from the prior-year month to $107.3 million.
Jay Stein, interim chief executive officer of Stein Mart said, "We are thrilled to announce our May comparable store sales increase of 8.2 percent, which was on top of a strong 8.0 percent increase in April."
Meanwhile, Fred's Inc. (FRED) reported a 0.5 percent decline in comparable store sales for May, compared with an increase of 1.3 percent in the same period last year. However, total sales for the month edged up 0.2 percent to $152.4 million from $152.1 million in the year-ago period.
The company noted that unseasonal cool and wet weather in May continued to have a negative impact on lawn and garden merchandise, summer toys, and other seasonal departments. Additionally, the sales impact of the ongoing brand-to-generic conversion in the pharmacy department more than offset continued growth in script counts.
Value-priced fashion apparel retailer Cato Corp. (CATO) reported that May same-store sales declined 2 percent, while total sales for the month decreased 3 percent from last year to $81.7 million.
Off-price retailer TJX Cos., Inc. (TJX) and discount retailer Ross Stores Inc. (ROST) have joined a growing list of companies that have stopped reporting monthly sales results.
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