Same-Store Sales: The Good News (Update)

Despite overall negative May same-store sales numbers, there are some winners to be found among the many losers.
Author:
Publish date:

Lost amid the hand-wringing and gnashing of teeth over today's May same-store sales results, there were a few winners to be found amid the glut of losers.

For the most part the retail sector was awash with disappointing news, as chain sales declined 4.6% during the month compared with last year, according to the International Council of Shopping Centers.

A bevy of companies missed Wall Street's expectations, including

Gap

(GPS) - Get Report

,

Limited Brands

(LTD)

,

Costco Wholesale

(COST) - Get Report

and

Target

(TGT) - Get Report

.

The bad news was attributable to difficult comparisons, as retailers struggled against a $50 billion Federal tax rebate distributed to shoppers in May and June last year.

The weaker-than-expected results sent the S&P Retail Index tumbling 3% to 330.16 in afternoon trading.

But for all of those negative Nancys, there were a handful of companies that actually posted positive numbers that far exceeded forecasts.

Among the best performers were teen retailers

Aeropsotale

(ARO)

and

Buckle

(BKE) - Get Report

, as well as off-pricers

Ross Stores

(ROST) - Get Report

and

TJX

(TJX) - Get Report

.

Aeropostale reported a 19% jump in same-store sales, surpassing analysts' expectations of 10.7% growth, while Buckle's increased by 13%. Analysts forecast comps of 11.2% increase for the company.

And value clearly continues to resonate with shoppers. TJX saw a 5% increase in May sales, beating Wall Street's target of 3.6%. The company also reaffirmed its second-quarter outlook in the range of 43 cents to 49 cents a share.

Discount rival Ross Stores rose 4%, topping analysts' expectations of a 2.9% increase.

Copyright 2009 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.