Several top US retailers, including Costco Wholesale Corp and T.J. Maxx parent TJX Cos Inc, reported weaker-than-expected March sales as cold weather and lingering concerns about the job market chilled shoppers' enthusiasm. Costco reported weak international results, but fared a bit better in the United States, where strong sales of small appliances, jewellery and fresh food offset the effect of lower gasoline prices.
Sales at stores open at least a year were up 4 percent, less than the 5.2 percent jump analysts expected. TJX reported a 2 percent decline in March same-store sales, deeper than the 1 percent drop analysts were projecting. But the company said business improved as the weather warmed up, and Chief Executive Officer Carol Meyrowitz said April "was off to a good start."
Analysts expect 13 top US retailers, including TJX Cos and Gap Inc, to post a 1.8 percent rise in same-store sales for March, according to Thomson Reuters, down from an increase of 2.9 percent a year earlier. Gap Inc will report its results after the markets close. There were at least some bright spots in the month, the economy and weather notwithstanding.
Victoria's Secret parent L Brands Inc reported higher-than-expected sales at all of its chains. Companywide, same-store sales rose 3 percent, while Wall Street expected them to be flat, according to Thomson Reuters data. Low-priced retailer Ross Stores Inc, which has less exposure to the colder regions of North American than larger rival TJX, posted an unexpected gain in same-store sales. It now expects its quarterly profit to come in slightly above its earlier range of $1.00 to $1.04 per share.
Zumiez Inc and Buckle Inc, which cater to younger shoppers who are particularly exposed to the vagaries of the economy, both reported stronger-than-expected numbers. American Apparel Inc said its March same-store sales were up 8 percent. Also, Easter fell on March 31 this year, compared with April 8 last year. With colder temperatures and wintry weather leading up to the holiday, shoppers may have held off on buying new spring clothing. Larger rival Walgreen Co reported a modest 0.7 percent same-store sales gain, with a better showing for general merchandise, which beat expectations.