US Apparel Retailers Report Modest May Comp Sales Growth

(RTTNews) - Most U.S. apparel retailers on Thursday reported modest increases in sales at established stores for the month of May, as warmer weather saw sales for spring and early summer clothing pick up amid improved traffic and sales trends.

The improvement in business and weather conditions in the second half of April continued into May.

Sales also got a boost from Mother's Day, which is seen as the second biggest gifting holiday in the year after Christmas. Further, shoppers later stocked up on summer styles when retailers offered their annual Memorial Day discounts.

Sales at established stores or comparable-store sales is a key retail industry performance metric to gauge activity at store locations that have been open for at least a year.

L Brands, Inc. (LB), the operator of Victoria's Secret and Bath & Body Works chains, said its May comparable store sales increased 3 percent, reflecting strength of its Victoria's Secret Stores as well as Bath & Body Works stores. The result topped Street expectations for a 2.3 percent increase. Net sales also grew 4 percent to $763.6 million from $737.0 billion last year.

Stein Mart, Inc. (SMRT) reported a 0.4 percent growth in comparable store sales for the month of May. Total monthly sales also increased 2.2 percent to $109.6 million from $107.3 million in the prior-year month.

Another specialty retailer of action sports related apparel, footwear, equipment and accessories Zumiez, Inc. (ZUMZ) reported Wednesday that its comparable store sales for May grew 3.6 percent. Total net sales also increased 13.3 percent from last year to $49.5 million.

Teen apparel retailer Buckle, Inc. (BKE) announced that comparable store net sales for the month of May declined 3.1 percent. Net sales also decreased 1.2 percent to $72.0 million from last year's $72.8 million.

Meanwhile, value-priced fashion apparel retailer Cato Corp. (CATO) reported that May same-store sales increased 3 percent. Total sales also grew 6 percent from last year to $86.4 million.

"May sales continued our recent trend. However, we continue to expect the remainder of the year will be in line with our original guidance," commented John Cato, Chairman, President, and CEO of Cato.

A report released from the Conference Board on May 27 showed that consumer confidence in the U.S. improved slightly in the month of May, in line with economist estimates, as as consumers assessed current conditions, in particular the labor market, more favorably.

The Conference Board said its consumer confidence index climbed to 83.0 in May from a downwardly revised 81.7 in April. Economists had been expecting the index to edge up to 83.0 from the 82.3 originally reported for the previous month.