Retail Winners & Losers: Macy's, Bebe

Retailers are trading higher on Friday after positive same-store sales data.
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NEW YORK (

TheStreet

) -- Retail shares are rallying a day after the sector saw its highest sales gain since June 2008.

One of the biggest gainers is

Macy's

(M) - Get Report

, which is climbing by 5.9% to $19.09 in afternoon trading. The department store was upgraded by J.P. Morgan to overweight from neutral on a second month of improving sales.

On Thursday, the company posted a 0.8% decline in October same-store sales, as it begins to benefit from its national roll-out of its My Macy's localization initiative.

Saks

(SKS)

is also gaining ground, up 3.9% to $6.13, after it announced that comparable sales for the month inched up 0.7%, significantly higher than the 3.6% decline Wall Street forecast.

Meanwhile,

CVS Caremark

(CVS) - Get Report

is regaining some of its massive loss from yesterday, when it reported that it

lost $2 billion worth of business

in its pharmacy benefits-management unit.

The drugstore also said the Federal Trade Commission is investigating some of its business practices.

Thus, despite a 39% surge in third-quarter profit, shares in CVS still tanked 20% on the news. Today, however, they are growing slightly, up 2.8% to $29.69.

Whole Foods Market

(WFMI)

vis rising, by 4% to $28.19, after shares tumbled earlier this week when it

reported a modest sales forecast for 2010

. And while CEO John Mackey said sales turned the corner and are starting to improve, his forecast of a gain of just 5% to 8% didn't impress investors.

Other notable gainers included home furnishing retailers

Lowe's

(LOW) - Get Report

and

Home Depot

(HD) - Get Report

, which are set to report earnings on Nov. 16 and Nov. 17, respectively. Lowe's is jumping 4.3% to $20.94, while Home Depot is up 2.2% to $26.18.

Amazon

(AMZN) - Get Report

is also climbing, by 4.6% to $126.18, in afternoon trading.

But there were also some losers following the sales report.

Fred's

(FRED)

is tumbling 3.3% to $28.56 after it reported same-store sales that missed expectations.

The discounter said October comparable sales rose just 0.4%, below the 1.3% jump analysts forecast.

As a result, the company was downgraded on Friday by Webush Morgan to underperform from neutral.

Likewise,

Bebe

(BEBE)

is in the red after it announced that it swung to a loss in its first quarter on significantly lower sales.

During the quarter, the specialty retailer lost $4.2 million, or 5 cents a share, compared with a profit of $11.2 million, or 12 cents, in the year-ago period. Revenue tanked 23% to $125.7 million, as same-store sales plunged 25.7%.

Shares of Bebe are stumbling 8.9% to $5.95 in afternoon trading.

-- Reported by Jeanine Poggi in New York

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