Apparel Retailers Mostly Report Higher December Sales

(RTTNews) - A sampling of U.S. apparel retailers on Thursday mostly reported higher sales results at established stores for the month of December.

Shoppers finally spent money on buying winter apparel towards the end of December after the late arrival of cooler weather, boosting the holiday sales figures of apparel retailers. Unseasonably warm weather earlier in the month had delayed purchases of winter apparel.

Holiday sales are expected to constitute nearly one fifth of the retail industry's annual sales of $3.2 trillion. The National Retail Federation sees a sales increase of 3.7 percent this holiday season, compared to the 4.1 percent growth reported last year.

In late December, the Conference Board has revealed that the consumer confidence in the U.S. rose by more than expected in the month. The Conference Board said its consumer confidence index climbed to 96.5 in December, from an upwardly revised 92.6 in November.

Sales at established stores or comparable-store sales is a key retail industry performance metric to gauge activity at store locations that have been open for at least a year.

L Brands, Inc. (LB), the operator of Victoria's Secret and Bath & Body Works chains, said its December comparable store sales increased 8 percent, reflecting strength in both its brand stores. The company recorded comparable store sales increase of 4 percent in the same period last year.

Net sales for the month were $2.42 billion, up 9 percent from $2.21 billion last year. The company said it delivered its best December ever.

Stein Mart, Inc. (SMRT) reported a 1.8 percent increase in comparable store sales for the month of December, compared to a 5.8 percent increase in the year-ago period. Total monthly sales grew 4.7 percent to $198.3 million from $189.5 million in the prior-year month.

Stein Mart noted that geographically, sales were relatively consistent across regions.

Value-priced fashion apparel retailer Cato Corp. (CATO) reported that December same-store sales rose 6 percent, while total sales rose 9 percent from last year to $118.5 million. The company noted that December same-store sales results were above its expectations and original guidance.

Looking ahead to the fourth quarter, Cato now expects earnings per share in a range of $0.39 to $0.43, compared to its original guidance of $0.35 to $0.39 per share. For the full year, the company now projects earnings per share of $2.35 to $2.39, up from its most recent guidance of $2.31 to $2.35 per share.

John Cato, chairman, president, and chief executive officer of Cato said, "Increased earnings per diluted share are primarily due to higher sales and lower taxes; however, we still remain cautious for the remainder of the quarter due to unfavorable sales comparisons to last year," John Cato said.

Bucking the trend, teen apparel retailer Buckle, Inc. (BKE) said that comparable store net sales for December declined 5.4 percent from the year-ago period. Net sales decreased 4.5 percent to $182.1 million from last year's $190.6 million.