U.S. Clothing Retailers Report Soft Sales In February

(RTTNews) - A sampling of U.S. apparel retailers on Thursday revealed soft sales in February as the harsh winter weather likely dampened spring apparel sales and continued to keep customers away from stores, but not as much compared to last year's severe weather events.

Sales were strong through the first half of the month, but were severely impacted by record cold and inclement weather across most of the country in the second half. Sales during the month were some what aided by Valentine's Day and Presidents Day sales promotions.

However, the month of February is normally amongst the slowest month for retailers following the most important holiday season sales rush.

A report released from the Conference Board on February 24 also showed that its consumer confidence index pulled back by more than expected in the month of February after reporting a sharp increase in the previous month, reflecting a considerably less positive optimism about the short-term outlook. However, it still remains at pre-recession levels.

The U.S. consumer confidence index tumbled to 96.4 in February from an upwardly revised 103.8 in January. Economists expected the index to drop to a reading of 99.1 from the 102.9 originally reported for the previous month.

Meanwhile, economists expect consumer spending to begin increasing at a more rapid pace in the coming months as improvements in the labor market and the lower gas prices have put more money in the consumer's pocket, allowing them to spend more freely.

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 February comparable store sales increased 6 percent, reflecting strength in both Victoria's Secret and Bath & Body Works stores. Net sales were $806.1 million, up 7 percent from $750 million last year.

Stein Mart, Inc. (SMRT) reported a 2.6 percent growth in comparable store sales for the month of February. Total monthly sales also grew 4.9 percent to $88.6 million from the prior-year month.

Teen apparel retailer Buckle, Inc. (BKE) announced that comparable store net sales for the month of February decreased 2.7 percent. Net sales also edged down 0.9 percent to $88.6 million from last year's $89.5 million.

Buckle also said it began including online sales in its reported comparable store sales from the February 2015 monthly sales release and for all future periods.

Value-priced fashion apparel retailer Cato Corp. (CATO) reported that February same-store sales declined 10 percent, and total sales also decreased 7 percent from last year to $80.5 million.

"February sales were significantly impacted by winter storms during the last two weeks of the month," commented John Cato, chairman, president, and CEO of Cato. Another specialty retailer of action sports related apparel, footwear, equipment and accessories Zumiez, Inc. (ZUMZ) reported Wednesday that its comparable store sales for February grew 6.9 percent, on top of last year's 2 percent growth. Total net sales also increased 11.6 percent from last year to $54.0 million.