NEW YORK - Gap Inc. and Target Corp. posted February same-store sales that topped analysts’ estimates as unseasonably warm weather boosted purchases of spring merchandise.
Sales at Gap, the largest U.S. apparel chain, climbed 4 percent, beating the average projection for a 1.4 percent drop from analysts surveyed by Retail Metrics Inc. Target, the second-largest U.S. discount retailer, posted a 7 percent increase in same-store sales, topping the 5 percent estimate.
Warmer weather helped retailers who aggressively rolled out new products, Eric Beder, an analyst at Brean Murray Carret & Co. in New York, said in a report before results were announced. December and January were the warmest in six years, with mild temperatures continuing into February, according to Planalytics, a weather data provider.
“Warm weather could have led to a fairly stellar February,” Joel Bines, head of retail practice at AlixPartners in Dallas, said in a telephone interview before the results. “All indications point to a strong Valentine’s Day and the retail world benefiting from pent-up demand.”
Gap, based in San Francisco, rose 10 percent to $25.70 at 8:12 a.m. in in New York. Minneapolis-based Target climbed 1.3 percent to $57.45.
Same-store sales for the more than 20 companies tracked by Swampscott, Mass.-based researcher Retail Metrics were estimated to rise 3.5 percent. Full results will be available later today.
Most chains count locations open at least a year to tabulate same-store sales. The revenue is as key indicator of a retailer’s growth because new and closed sites are excluded.
Join PBN and two panels of successful female executives, business owners and entrepreneurs as we delve into what women should do to advance their careers, and become leaders in the corporate world and their own enterprises.
PBN's annual Book of Lists has been an essential resource for the local business community for almost 30 years. The Book of Lists features a wealth of company rankings from a variety of fields and industries, including banking, health care, real estate, law, hospitality, education, not-for-profits, technology and many more.