Apparel retailers benefit from mild weather in February
Warm weather, improved consumer confidence and the Valentine's Day holiday combined to form a perfect storm for apparel retailers, many of which topped Wall Street estimates for the month of February, Retailing Today reports.
The Thomson Reuters Same Store Sales Index – which analyzes 21 different companies – is expected to hit 4.8 percent for February when the report is released. This would beat last year's index reading by 0.8 percent. The big winners include Limited Brands, Gap and Zumiez, all of which exceeded or met the 4 percent average.
On the other end of the spectrum, "Wet Seal same-store sales fell 5.8 percent, but still beat Wall Street expectations of a 9 percent decline," the news source added.
Going into 2012, retailers expected big apparel sales, although the primary buyer isn't the traditional target audience of many of these companies. Men are expected to drive retail apparel this year, a recent IBM report found.
"The forecast of men's apparel sales reflects a growing trend: men are definitely developing a taste for fashion – especially in business attire," Jill Puleri, global retail leader for IBM Global Business Services, explains.
