US Apparel Retailers Report June Comp Sales Growth

(RTTNews) - Most U.S. apparel retailers on Thursday reported increases in sales at established stores for the month of June, as pleasant weather drew customers into stores for summer clothing.

June is normally a weak and promotional month for retail sales ahead of the strong back-to-school season, the second-biggest selling period after the holiday season.

However, the improved consumer confidence and employment picture saw higher store traffic that resulted in a better than expected improvement in sales.

A report released from the Conference Board on June 24 showed that U.S. consumer confidence improved much more than expected in the month of June, reflecting a notable improvement in consumers' assessment of current business conditions.

The Conference Board said its consumer confidence index jumped to 85.2 in June from a revised 82.2 in May, reaching its highest level since January of 2008. Economists had expected the consumer confidence index to edge up to 83.5 from the 83.0 originally reported for the previous month.

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 June comparable store sales increased 2 percent, reflecting strength of its Victoria's Secret Stores. Net sales also grew 7 percent to $1.18 billion from $1.10 billion last year.

Stein Mart, Inc. (SMRT) reported a 2.6 percent growth in comparable store sales for the month of June. Total monthly sales also increased 3.8 percent to $113.2 million from $109.0 million in the prior-year month.

Teen apparel retailer Buckle, Inc. (BKE) announced that comparable store net sales for the month of June edged up 0.7 percent. Net sales also increased 2.8 percent to $84.8 million from last year's $82.5 million.

Meanwhile, value-priced fashion apparel retailer Cato Corp. (CATO) reported that June same-store sales increased 3 percent. Total sales also grew 7 percent from last year to $92.0 million.

"June same-store sales were in line with our year-to-date trend," commented John Cato, Chairman, President, and CEO of Cato.

Another specialty retailer of action sports related apparel, footwear, equipment and accessories Zumiez, Inc. (ZUMZ) reported Wednesday that its comparable store sales for June grew 3.1 percent. Total net sales also increased 11.1 percent from last year to $65.3 million.