Retail Reports Start Strong

Chico's and Hot Topic lead the way for February.
By Nat Worden ,

Early retail returns for February were strong, ahead of the bulk of reports expected Thursday morning.

Chico's

(CHS) - Get Report

said its same-store sales rose 9.2% for the month compared to last year, beating Wall Street's estimates. Its total sales rose 24.2% to $83.5 million.

It also reported fourth-quarter earnings rose 29% from a year ago, helped by surging sales and relatively lower expenses, as well as sharply higher February comps. The women's clothing chain earned $33 million, or 18 cents a share, in the quarter, compared with $25.6 million, or 14 cents a share, last year. The latest quarter's earnings included an accounting charge of 2 cents a share, before which the company matched the Thomson First Call estimate of 20 cents a share.

Quarterly sales rose 32.5% from a year ago to $286 million, also matching estimates. Quarterly same-store sales rose 12.9% from last year.

Elsewhere, Goth gear purveyor

Hot Topic

(HOTT)

said same-store sales rose unexpectedly in February despite a tough year-ago result. Comps were up 0.2% for the company, compared with expectations for a 2% decline.

Hot Topic also said a review of its lease accounting will result in a downward earnings restatement for each of the past three years. The reduction will come out to about a penny a share for each year; earnings in 2005 would be about a penny a share below previous forecasts because of the action.

Another teen apparel retailer,

American Eagle Outfitters

(AEOS)

said its same-store sales jumped 32% for the month. Total sales rose 42% to $127 million.

For the quarter, the retailer's earnings nearly tripled, with sales up 37% to $674 million. It reported net income of $101.2 million, or $1.32 a share, compared with $35.4 million, or 49 cents a share, a year ago. Income from continuing operations rose to $107.2 million, or $1.40 a share, from $43.2 million, or 60 cents a share, last year. The results topped Wall Street's estimates.

Aeropostale

(ARO)

reported same-store sales rose 13.4% in February, beating estimates. Its total sales for the month rose 37.8% to $59.4 million.

Another teen apparel chain,

Pacific Sunwear

(PSUN)

said Tuesday its February same-store sales rose 10.5%, while total sales jumped 22.7% to $83.1 million.

Its PacSun stores logged a same-store sales gain of 10.7%, and d.e.m.o. stores recorded an increase of 9.1%.

At the high end of the retail spectrum,

Neiman Marcus

(NMG)

said Wednesday that its February same-store sales rose 7.7%, topping estimates. Its total sales for the month came to $275 million, up 6.5%.

The upscale department store operator said net earnings rose to $71 million, or $1.43 a share, for its second quarter, from $59 million or $1.21 a share, a year earlier.

At the downscale end, same-store sales at

BJ's Wholesale Club

(BJ) - Get Report

rose 6.7% in February, including a contribution from gasoline sales of 0.3 percentage points. Its results also beat expectations.

The wholesaler's total sales rose 10.4% to $535.9 million for the month from $485.2 million a year ago, driven by strong sales in fresh food and grocery items.

Also,

Costco

(COST) - Get Report

said February same-store sales rose 7%, beating estimates. Sales, which exclude membership fees, rose 9% to $3.78 billion for the four weeks ended Feb. 27, from $3.46 billion last February.

Its second-quarter earnings rose 35%, due in part to a big tax benefit. The members-only warehouse-club retailer posted net income of $305.5 million, or 62 cents a share, from $226.8 million, or 48 cents a share, in the year-ago quarter.

On Monday, the world's largest retailer,

Wal-Mart

(WMT) - Get Report

, reported unexpectedly strong results for the month, saying same-store sales rose 4%, hitting the high end of its standing 2% to 4% range.

Wal-Mart said it was seeing solid early sales of Easter items and said food outsold general merchandise. The gain in same-store sales was mostly the result of higher customer tickets rather than higher traffic. (Ticket refers to the average size of a single customer's purchase.)

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