Chain’s Same-Store Sales Rise in April

Despite higher gasoline prices and an uncertain economy, retail sales beat expectations last month -- barely.

Sales at stores open at least a year -- a key measure of performance -- were $50.2 billion, up 2.2% compared with April 2004, according to the International Council of Shopping Centers’ tally of 70 retail chains. Michael Niemira, the council’s chief economist, had expected a 2% gain.

Luxury stores and wholesale clubs were among the best performers in the month. California companies offered mixed results.

Easter’s arrival in March this year damped April sales, many retailers said.

On the bright side, teen retailer Wet Seal Inc. of Foothill Ranch, which shuttered more than 150 of its namesake stores, said same-store sales soared almost 36% in April. And trendy apparel seller Bebe Stores Inc. of Brisbane, Calif., which has been outshining most competitors in recent months, said comparable-store sales shot up 31.2%.

Neiman Marcus Group Inc. of Dallas and Seattle-based Nordstrom Inc. also beat expectations, posting gains of 12.5% and 6.9%, respectively.

But San Francisco-based Gap Inc. disappointed Wall Street. The parent of about 3,000 Gap, Old Navy and Banana Republic stores said same-store sales slipped 5% in April. Old Navy’s performance was flat compared with the previous year, while all other divisions experienced sales declines.

Pacific Sunwear of California Inc.’s same-store sales fell 6.4% in the month as its namesake chain and its d.e.m.o unit lost ground. The teen retailer said it expected fiscal first-quarter earnings of 23 cents a share, a penny less than analysts were expecting. Hot Topic Inc., a City of Industry-based retailer of music-themed clothes and accessories, also disappointed with a 4.1% decline.

Bentonville, Ark.-based Wal-Mart Stores Inc., the world’s largest retailer, posted a 0.9% increase, near analysts’ expectations. Target Corp. of Minneapolis rose 1.3%, and Shopko Stores Inc., a Green Bay, Wis., discount chain, fell 11.1%.

Taken together, the discounters put in their worst performance in more than two years, Niemira said. Department stores collectively posted their strongest performance since March 2004, rising 3.3%, based partly on easy comparisons with last year.

The mixed results brought mixed reactions on Wall Street. Pacific Sunwear shares fell $1.13 to $21.43, while Hot Topic slipped 27 cents to $19.70 and Bebe jumped $1.99 to $35.29, all on Nasdaq. Target added $1 to $47.28 on the New York Stock Exchange. A Morgan Stanley index of 38 publicly traded retailers rose almost 1%.

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Bloomberg News was used in compiling this report.

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Mixed bag

Percentage change from a year earlier in April sales at stores open at least one year

*--* Company % change Wet Seal +35.7% Bebe +31.2% Nordstrom +6.9% J.C. Penney +3.6% Federated +2.8% Gottschalks +1.9% May +1.5% Target +1.3% Ross +1.0% Wal-Mart +0.9% Guess -1.2% Limited Brands -4.0% Hot Topic -4.1% Gap -5.0% Pacific Sunwear -6.4%

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Sources: Times wire services, company reports