(Adds analyst comments, share prices for more companies)
DOW JONES NEWSWIRES
Wal-Mart Stores Inc. (WMT) smashed analysts' expectations with a
5% jump in April same-store sales as the rest of the industry
followed the trend, posting results higher than analysts' dour
views.
March sales were hurt by Easter moving back to April this year,
and analysts expected April sales to benefit from the shift.
But all the news wasn't positive from Wal-Mart, as it said it
expects sales for the fiscal first quarter, which ended April 30,
of about $93 billion, below analysts' estimates of $96.82 billion,
according to Thomson Reuters. Still, shares were recently up 2.3%
at $50.65 on the April results.
Wal-Mart also said it would no longer report monthly same-store
sales, saying it will report sales data when it releases its
quarterly results.
A retail index by Thomson Reuters came in up 1.2% for the month
- posting a drop of 2.7% excluding Wal-Mart's results. Analysts had
expected an overall drop of 0.2% and a slide of 3.4% excluding
Wal-Mart.
Analyst Brian Sozzi with Wall Street Strategies Inc. said he
wasn't surprised by the industry's monthly and quarterly results.
"Retailers aggressively managed down inventories coming out of the
dismal holiday quarter and are finally benefiting from serious
store-closing campaigns orchestrated in 2008," he noted. But he
thinks the earnings upside is unsustainable.
Wal-Mart posted a 5% increase in U.S. same-store sales last
month, excluding gasoline sales, with the namesake chain posting a
5.9% jump and Sam's Club reporting 0.3% growth. Analysts had been
expecting a 2.9% increase overall. April's results were driven by
the grocery, health and wellness, hardlines, entertainment and home
segments, as well as seasonal merchandise.
Vice Chairman Eduardo Castro-Wright said the world's largest
retailer gained new customers, boosted its market share and found
that when customers had more money to spend, "they spent it more
often at Wal-Mart."
Rival discounter Costco Wholesale Corp. (COST) didn't fare as
well, posting flat same-store-sales excluding gasoline and currency
fluctuations. But BJ's Wholesale Club Inc. (BJ) said same-store
sales rose 5.5%, excluding gas sales, widely beating analysts'
estimates.
Among other retailers, Children's Place Retail Stores Inc.
(PLCE) posted a 4% increase in same-store sales, beating analysts'
expectations.
High-flyer Buckle Inc. (BKE) again soared above its peers,
reporting an 18% increase in same-store sales, beating analysts'
expectations for an 11% gain. The company has posted double-digit
growth in same-store sales for 21 straight months.
Another teen retailer, Abercrombie & Fitch Co. (ANF) beat
analysts' dire expectations with a 22% drop. Abercrombie has been
steadfast about refusing to cut its prices, saying such a move
would devalue its brand.
Other companies that beat views included department-store
operator Stage Stores Inc. (SSI) as well as Gap Inc. (GPS) and Ross
Stores Inc. (ROST). TJX Cos. (TJX) also beat expectations, posting
a 3% same-store sales increase when analysts were looking for
same-store sales to fall.
Department stores Macy's Inc. (M) and Saks Inc. (SKS) missed
analysts' estimates with same-store sales drops of 9.1% and 32%,
respectively.
Buckle's shares were recently down 0.5% at $36.65, while Gap's
were up 4.7% at $17.08. Abercrombie & Fitch was up 5.5% at
$27.43 and Children's Place advanced 14% at $37.08. BJ's shares
were up 11.9% at $38.02.
-By Kerry E. Grace, Dow Jones Newswires; 201-938-5089;
kerry.grace@dowjones.com