Arrow-right Camera
The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

Nation’s retailers report robust sales results in April


A customer looks at a catalog next to a screen that can order merchandise online at a JC Penney's store in a Fricso, Texas. 
 (Associated Press / The Spokesman-Review)
Associated Press The Spokesman-Review

NEW YORK — Consumers seemingly unfazed by rising gasoline prices shopped enthusiastically during April, giving retailers their best performance in two years.

Warmer weather, a late Easter and hot fashion trends helped entice shoppers, but merchants remained wary about the possibility that expensive gas and higher interest rates could still curb consumers’ appetites.

As major retailers reported their sales figures Thursday, many including Wal-Mart Stores Inc., Target Corp., Nordstrom Inc., Abercrombie & Fitch Co. and Limited Brands Inc. had better-than-expected results. Even Gap Inc., which has disappointed Wall Street for months, posted a smaller sales decline than analysts expected.

Solid sales helped J.C. Penney Co. Inc. raise its first-quarter profit outlook, boding well for other merchants as they prepare to report earnings over the next few weeks.

Overall, “it looks excellent,” said Jharonne Martis, an analyst at Thomson Financial. She noted that although there are worries about the strength of sales in the next few months, “consumers beat expectations. It seems like all stores got traffic.”

Martis noted that a positive sign was the robust results from teen retailers, indicating that younger consumers have a lot of discretionary spending despite high gasoline prices, she said.

The International Council of Shopping Centers-UBS sales tally of 69 retailers rose a robust 6.6 percent last month, the best performance since March 2004,when the reading was up 7.0 percent. The tally is based on same-store sales, or sales at stores open at least a year. Same-store sales are considered the best indicator of a retailer’s performance.