Retailers Record Strong Sales Gain

The nation’s retailers extended their winning streak to a fourth month during March, boosted by a flood of new fashions and an early Easter that gave even long-struggling department stores a lift.

Wal-Mart Stores Inc., Gap Inc., J.C. Penney Co. and Nordstrom Inc. were among the stores with better-than-expected sales. The few disappointments included Sears, Roebuck & Co. and Kohl’s Corp., whose results fell below Wall Street expectations.

“The month is the strongest of the year so far, and I suspect that it will be the strongest performance for the whole year as well,” said Michael Niemira, chief economist at the International Council of Shopping Centers.

Retailers face potential problems in the months ahead, among them rising gasoline prices and lingering job weakness, that could stall their momentum, Niemira said.

Wal-Mart on Thursday sought to lower expectations for April, saying its same-store sales gain -- results from stores open at least one year -- probably would be near the lower end of a predicted range of 4% to 6%.

The International Council of Shopping Center-UBS same-store sales tally was up 7% in March, topping Niemira’s estimate of 6.5%.

Niemira added that warmer weather helped retailers earlier in the month, although sales decelerated in the last week when temperatures fell.

Retailers got a boost from sales of children’s suits and candy for Easter, which falls nine days earlier than last year.

Department stores and mall-based apparel stores reported consumers responded enthusiastically to new fashions. Bright colors such as hot pink and lime green and new career lines from Tommy Hilfiger and Calvin Klein helped draw in shoppers.

San Francisco-based Gap, the largest U.S. apparel chain, reported an 8% increase in same-store sales, beating projections of 5.9%.

A number of retailers, including Target Corp., Penney and Federated Department Stores Inc., raised their first-quarter profit outlooks, noting that consumers were buying more items at full price.

Wal-Mart reported a 6% gain in same-store sales, while analysts surveyed by Thomson First Call expected 5.7%. Rival Target had a 7.3% increase, besting Wall Street’s projections of 6%.

High-end stores extended their positive trends. Nordstrom posted a 15.9% same-store sales gain and Neiman Marcus Group a 25.7% increase.