Major US retailers shrugged off the snowiest January in six years to post sales that blew past analysts' estimates, easing concerns that consumers were all spent out after the holidays. Retailers posted a 4.2 percent increase in sales at stores open at least a year, beating Wall Street expectations for a 2.7 percent gain and exceeding a year-earlier rise of 3.3 percent, according to Thomson Reuters data.
US government data on Thursday showed a sharp fall in new US claims for unemployment benefits last week and stronger-than-expected nonfarm productivity in the fourth quarter. Retailers' stronger-than-expected performance in January drove the Standard & Poor's Retail index up 0.8 percent, while the broader S&P 500 index fell 0.4 percent. Shares of Victoria's Secret parent Limited Brands Inc, apparel retailer Gap Inc and upscale chain Nordstrom Inc were some of the top percentage gainers on Thursday.
The International Council of Shopping Centers forecast same-store sales will rise 2.5 percent to 3 percent in February. Victoria's Secret parent Limited Brands Inc and warehouse club operator Costco Wholesale Corp were some of the bright spots among retailers that reported January sales on Thursday. Limited Brands, which has won praise from analysts for its efforts to become a destination for small gifts, reported a 24 percent rise in same-store sales, well past the analysts' average estimate of 6.7 percent.
Other retailers were not so lucky as the snowiest January in six years played havoc with hopes of a strong ending to the holiday season. The weather curbed shopper traffic in malls and stores, especially in the Northeast, where there were multiple snowstorms.