U.S. retail sales rose faster than expected last month, as holiday gift cards were redeemed and cold weather fueled purchases of winter clothing, according to Bloomberg News.
Sales at 51 U.S. retail chains rose 3.7 percent last month, according to the International Council of Shopping Centers, surpassing the trade group’s preliminary estimate of 3 percent. Goldman Sachs reported a 3.2 percent rise in its own sales index of about 30 retailers.
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“The strength we saw was basically from the weather,” Sarah Henry, an analyst with Berwyn, Pa.-based Sovereign Asset Management, told Bloomberg. “It’s the typical divergence between luxury retailers and lower-income retailers.”
Federated Department Stores Inc. posted a gain of 8.6 percent – almost double analysts’ estimates. Wal-Mart Stores Inc.’s sales rose 2.2 percent, beating the company forecast, while Gap Inc.’s sales were steady, despite analysts’ predicted 7.6-percent drop. Both companies also posted better-than-expected fourth-quarter profits.
