Retailers Bounce Back After Weak December; Warm Weather Hurts

[Stocks-to-Watch]

Retailers that release their same store sales figures every month generally showed better than expected sales growth in January, posting 4.2% growth compared to expectations for 2%, according to Thomson Reuters. The warmer weather this winter has hurt some apparel-makers, but most companies were able to boost sales.

Among the top performers was Saks (SKS), which posted 10.5% year over year sales growth, against expectations for a 6.2% rise. Nonetheless, shares were trading 1% lower this afternoon.

Target (TGT) stock rose 1.2% after posting 4.3% increase against expectations for a 2.1% rise. Macy’s (M) and Kohl’s (KSS) both raised their earnings estimates following the sales release, sending shares higher.

Because many retailers have stopped publishing their sales results on a monthly basis — JC Penney (JCP) was the latest to say it will release the information on a quarterly basis — it’s harder to gauge how the broader sector is doing, but the monthly reports still offer a decent snapshot.



Original Article Source by Barrons.com