Many industry experts and analysts question whether retailers will be able to sustain the momentum going forward, especially if unemployment remains high. I say, give retailers one day to celebrate some good news before worrying about what February and March will bring.
Meanwhile, here’s my take on some of today’s results:
- Among the biggest surprises -- and winners -- in January was Abercrombie & Fitch, which posted an 8% rise in same-store sales. Forecasts had called for a decline of 8.6%. The news prompted a friend to call me: “Abercrombie is back,” he said. I’m not convinced -- at least not yet. One month does not make a turnaround. I think at least part of A&F’s January sales gain had to do with holiday gift-card redemptions. It will be interesting to see how the chain fares this spring. However, A&F’s results do make one thing clear: Teens are among the most fickle consumers out there.
- Another big surprise was The Buckle, which posted a 1.2% decline. Analysts were looking for a 4.1% gain. The Buckle has been an exceptionally strong performer throughout the downturn. Unlike a lot of other retailers, it was going up against a strong performance from last January.
- Hot Topic is no longer benefiting from the “Twilight” phenomena. The teen retailer, which has been struggling for the past few months, posted a 13.1% drop in January.
- Luxury is rebounding. Both Nordstrom and Saks had strong gains that were markedly better than Wall Street expectations,
- Kohl’s continue to shine. It had a 6.5% gain in January sales compared with the 2.8% uptick Wall Street predicted.
- Don’t count department stores out -- at least not yet. Macy’s posted a 3.4% sales increase in January. The retailer’s January sales rose to $1.25 billion.
- Value remains key. TJX had a double-digit gain in same-store sales. Ross Stores posted an 8% increase.
