Santa delivers for U.S. retailers
New York — Inventory control, coupled with last-minute shopping and post-holiday bargain hunting, drove U.S. retailers’ best monthly sales in more than 20 months, results showed Thursday, and several — from discounter Target Corp. to upscale retailer Nordstrom Inc. — gave rosier profit outlooks.
Target (TGT 50.21, +0.55, +1.11%) , the No. 2 U.S. discounter, said it expects to meet or exceed analysts’ average fourth-quarter profit estimate of $1.11 a share. Its December sales rose 1.8%, against analysts’ expectation for a decline.
Sears Holdings Corp. (SHLD 100.07, +11.20, +12.60%) was a surprise winner, projecting a higher fourth-quarter profit that topped Wall Street expectations, as December same-store sales unexpectedly rose 0.4% on gains at its Kmart chain. As a sign that consumer spending is gradually recovering and shoppers feel more comfortable about buying items they don’t need, Nordstrom (JWN 38.61, +1.18, +3.15%) and fellow luxury retailer Saks Inc. (SKS 7.33, -0.11, -1.48%) reported much-better-than-expected monthly sales gains of 7.4% and 9.9%, respectively.
Further, Macy’s Inc. (M 17.40, +0.30, +1.76%) raised its outlook after sales rose more than expected, citing strength at both its namesake stores and its upscale Bloomingdale’s division.
Target saw strong demand in a broad array of categories including apparel, electronics, toys in addition to consumables such as food.
Retail stocks, as tracked by the S&P Retail Index (RLX 417.80, +3.84, +0.93%) , were up 0.5% to 415.89 in mid-morning trading. Sears’ shares were a big winner, jumping 13%.
