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High-End Retailers See Higher-Than-Expected Sales

 
By Kathryn Glass
FOXBusiness
     

    The retail picture improved a bit in October, with some department stores posting numbers that beat analyst expectations.

    Overall same-store sales fell short of the expectations, according to Thomson Reuters, with sales rising just 1.8%,below the projected 2% increase. However, Retail Metrics, which gathers analyst consensus for 30 retail stores, said sales came in ahead of estimates, with overall sales growth of 2.2%.

    Many of the higher-end retailers saw sales come in ahead of expectations, while discount retailers and wholesale stores had the more disappointing results.

    "The improvement in the stock market has had a significant impact on the affluent shopper’s willingness to spend ─ as the luxury market has shown its first positive reading since May 2008," said Michael Niemira, chief economist and director of research for ICSC, in a statement.

    Luxury department stores Saks Inc. (SKS) and Nordstrom (JWN) saw sales rise 0.7% and 6.5%, respectively, ahead of analyst forecasts for a 3.6% decline and a 3% increase for the retailers.

    Other better-than-expected showings included American Apparel, which saw sales decline just 6% from last October, beating expectations for a 12% decline. Department store Dillard’s (DDS) posted an 8% sales decline, in line with forecasts, while Ross Stores (ROST) saw sales rise 9%, beating expectations for a 7.3% increase.

    Casual apparel retailer Gap Inc. (GPS) impressed with better-than-expected sales increase of 4.0%, compared to projections for a 1.6% increase.

    Teen retailers saw disappointing sales numbers during the month, with retailers Abercrombie & Fitch (ANF), Aeropostale (ARO), Buckle (BKE) and American Eagle (AEO) all posting lower-than-expected results.

    Wholesale and discount retailers BJ’s Wholesale (BJ), Costco (COST) and Target (TGT) all reported sales that were below expectations. BJ’s saw sales rise 3.7%, below projections for a 4.2% increase, while Costco reported sales increased 3% during the month, below analyst forecasts for a 5.8% increase. Target reported that sales declined 0.1%; the street was expecting sales to be flat for the month of October.