Retailers report mixed sales results for April

Thursday, May 5th 2005, 8:30 am

By: News On 6

NEW YORK (AP) _ Consumers overcame some of their reluctance to shop in April, giving the nation's retailers sales that modestly beat expectations. Results again varied widely among merchants, reflecting shoppers' uncertainty about the economy and struggles with higher gasoline prices.

As stores began to report their sales results Thursday, Wal-Mart Stores Inc., the world's largest retailer, and rival discounter Target Corp. turned in disappointing performances. But teen retailers and wholesale clubs had substantial sales gains. Another standout was J.C. Penney Co. Inc., which reported results that beat estimates.

``The results were uneven, but there were clear pockets of strength,'' said Michael P. Niemira, chief economist at the International Council of Shopping Centers.

The International Council of Shopping Centers-UBS preliminary sales tally of 60 stores posted a 2.5 increase for the month, better than the 2 percent gain that he had expected. The tally is based on same-store sales, which are sales at stores opened at least a year; they are considered the best indicator of a retailer's health.

The April results, while uneven, did raise hopes that consumers might spend a little more freely in the months ahead. Consumers are very concerned about the economy, according to measures of consumer confidence that have fallen for three straight months, and they've had to factor higher gasoline prices and interest rates into their budgets. Meanwhile, the job market is still uncertain.

The nation's discounters, whose customers have been particularly hurt by high gas prices, had another lackluster month.

Wal-Mart had a 0.9 percent gain in same-store sales, or sales opened at least a year, slightly below the 1.0 percent gain from the consensus of Wall Street analysts polled by Thomson Financial. Same-store sales are considered the best indicator of a retailer's health. Total sales rose 7.4 percent.

But Wal-Mart did get a boost from Sam's Club, which posted a 4.9 percent gain for the month. That compared with the company's flagship discount stores, which had only a 0.1 percent increase.

Rival Target had a 1.3 percent gain, below the 2.3 percent Wall Street forecast. Total sales rose 7.7 percent.

Costco Wholesale Corp. enjoyed a same-stores sales gain of 8 percent, surpassing the 6.7 percent analyst estimate. Total sales rose 11 percent.

BJ's Wholesale Club had a 8.4 percent gain, outpacing the 4.1 percent Wall Street forecast. Total sales rose 12.5 percent.

Perkins noted that wholesale clubs have done well because they tend to appeal to a higher-end consumer, who hasn't been vulnerable to the economy's fluctuations.

Meanwhile, Penney had a 3.6 percent gain in department stores, outpacing the 1.7 percent Wall Street forecast. Total department store sales rose 4.7 percent.

Federated Department Stores Inc. posted a 2.8 percent increase, better than the 0.5 percent estimate. Total sales rose 2.6 percent.

Upscale department stores continued to post strong gains. Nordstrom Inc. had a 6.9 percent gain in same-store sales, above the 3.6 percent forecast. Total sales rose 8.1 percent.

Neiman Marcus Group Inc. had a 14.2 percent gain, beating the 6.2 percent estimate. Total sales rose 13.3 percent.

Apparel retailer Talbots Inc. enjoyed a 7.1 percent gain, far surpassing the 2.3 percent forecast. Total sales rose 11 percent.

Teen retailer American Eagle Outfitters Inc. rose 20 percent, beating the 18.9 percent estimate. Total sales rose 30.2 percent.

Limited Brands, which owns stores including Victoria's Secret, had a 4 percent drop in same-store sales, worse than the 1 percent decline analysts predicted. Total sales rose 1.8 percent for the month.