June's Last Week the Strongest in 5 Months

Not enough credit is given to pent-up demand.

As today's retail figures show, shoppers clearly have been itching for summer, and warmer weather last week gave them a push to buy some seasonal goods.

Retail sales overall grew 1.6% for the week ended June 27, according to the International Council of Shopping Centers and Goldman Sachs. The week marked the strongest gain since Jan. 31.

On a year-over-year basis, sales improved .6%.

"This late-June sales spark was a welcome sign for the industry and the economy," Michael P. Niemira, ICSC chief economist said in a statement.

FBR Capital Markets analyst Adrienne Tennant said the biggest uptick in mall traffic came from teens.

In a note on Tuesday, she said there were deep discounts at retailers like Charlotte Russe(CHIC Quote), Gap's(GPS Quote) Old Navy chain and Pacific Sunwear of California(PSUN Quote). But it seems Old Navy was the only retailer to profit from these sales.

Abercrombie & Fitch(ANF Quote), however, actually removed its clearance sign and stocked the stores with new full-price merchandise.

Tennant praised J.Crew for its "impressive traffic" and well-controlled inventories.

But one week of good news will not be enough to save June. Wet weather earlier in the month and consumers still cutting back weighed on results. ICSC expects June sales, excluding Wal-Mart Stores(WMT Quote), to be down about 5%.

Retailers report monthly sales on June 9.