NEW YORK – Same-store sales at Gap Inc. and Macy’s Inc. rose more than estimated in April as consumers gained confidence in the U.S. economy’s recovery.
Gap, the largest U.S. apparel chain, posted an increase of 8 percent, compared with the 0.1 percent average gain from analysts’ estimates compiled by Retail Metrics Inc., which tracks more than two dozen U.S. chains.
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Confidence among U.S. consumers rose more than estimated in April as six straight months of job gains buoyed the spending that makes up about 70 percent of the economy. Retailers also benefited from the Easter holiday falling on April 24, 20 days later than a year ago.
“Apparel had another very strong month, partly assisted by the shift in Easter holiday,” Mike Berry, a St. Louis-based director of research for MasterCard Advisors SpendingPulse, said before today’s results. “With things being so weak for so long in apparel, there was a need for consumers to begin to replenish their wardrobe.”
Gap fell 22 cents, or 0.1 percent, to $22.91 in early New York Stock Exchange composite trading. Macy’s gained 25 cents, or 1.4 percent, to $25.75.
Most chains count locations open at least a year to tabulate same-store sales. This revenue is a key indicator of a retailer’s growth because new and closed sites are excluded.
Analysts estimated that same-store sales for the chains tracked by Swampscott, Massachusetts-based Retail Metrics would gain 7.7 percent last month. That would mark a 20th straight increase from September 2009. Final results will be released later today. Retailers as a group posted a gain of 2.2 percent in March, surpassing projections for a drop of 0.5 percent.
Old Navy
Gap also said income in the first quarter would be as much as 39 cents a share. Analysts expected 40 cents, the average of 24 estimates. Gap’s Old Navy chain posted the largest gain at 14 percent, followed by the Banana Republic brand at 11 percent.
Sales at Macy’s, the second-largest U.S. department store chain, rose 5.3 percent combined for March and April, surpassing its forecast of as much as 4.5 percent.
Gasoline prices in the U.S. last month surged 9 percent to an average of $3.94 a gallon on April 30, the highest price since July 2008. That curbed spending for some consumers, according to Michael McNamara, vice president at SpendingPulse.
“We can expect consumers to make fewer shopping trips,” McNamara said before Thursday’s results. That may give an even bigger boost to revenue from online sales, which rose 19 percent last month, he said.
