Bullish Same-Store Sales Growth Sets Earnings Bar High for Retailers

Joe Goldman |

GapSame-store sales results from June widely topped expectations, indicating a strong consumer and raising hopes for the upcoming earnings season.

Although only a handful of companies report monthly same-store sales, the results were predominantly positive. Here are some notable comparable sales numbers for the month of June.

Gap (GPS) reported outstanding same-store sales growth on Thursday, with 7 percent growth in June versus 4.7 percent expectations. High-end Banana Republic shrunk 1 percent, while Old Navy, Gap’s lower-end retailer, grew 13 percent.

Gap’s report is a good sign for clothing retailers everywhere, although weakness in Banana Republic could be somewhat foreboding for certain high-end companies. Shares rose almost one percent to $45.13 in trading on Monday.



Mega retailer Target (TGT) and warehouse wholesaler Costco (COST) easily topped expectations as well. Target posted 5.9 percent same-store sales growth versus 4.8 percent estimates, while Coscto came in at 6 percent compared to 5.2 percent estimates. Results from both companies will set the bar high for huge retailers like Wal-Mart (WMT) this summer.

American Apparel’s (APP) same-store sales growth affirmed a continuous bullish trend in e-commerce. The clothing manufacturer and retailer announced 7 percent same-store sales growth, driven by a 22 percent increase in online sales. Shares have more than doubled over the past twelve months.

The Buckle (BKE), a casual apparel retailer, said that comparable sales rose 3.4 percent. Cato (CATO), a women’s fashion retailer, reported similar numbers with 3 percent comparable sales growth.

Among the slowest growers were sports retailer Zumiez (ZUMZ) and Victora’s Secret parent company L Brands (LTD), which reported 1 percent and 0 percent comparable sales growth, respectively. 

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Companies

Symbol Name Price Change % Volume
CATO Cato Corporation (The) Class A 13.59 0.31 2.33 230,903 Trade
WMT Wal-Mart Stores Inc. 87.44 1.04 1.20 7,617,753 Trade
BKE Buckle Inc. (The) 16.60 0.50 3.11 438,840 Trade
TGT Target Corporation 61.76 1.33 2.20 6,053,790 Trade
COST Costco Wholesale Corporation 160.77 2.31 1.46 3,993,227 Trade
GPS Gap Inc. (The) 26.96 0.35 1.32 5,891,742 Trade
ZUMZ Zumiez Inc. 17.65 0.15 0.86 275,255 Trade
EXPH Expo Holding Inc 0.00 0.00 0.00 0

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