Retail News: Family Dollar Rejects Takeover Offer; Same-store Sales Mostly Improve (FDO, ANF, ARO, AEO, GPS, TGT, DDS, M, LTD, SSI, PIR, TJX, ZUMZ)

There’s a lot of action in the retail sector this morning, headed by a rejected buyout offer for Family Dollar Stores Inc. (NYSE: FDO) from hedge-fund manager Trian Group, which is headed by Nelson Pelz. The offer, which was worth up to $7.75 billion was announced last month.

The number of stores reporting monthly sales has fallen by three, as Abercrombie & Fitch Co. (NYSE: ANF), Aeropostale inc. (NYSE: ARO), and American Eagle Outfitters Inc. (NYSE: AEO) will no longer report monthly sales. Wal-Mart Stores Inc. (NYSE: WMT) stopped reporting monthly sales more than a year ago.

Among the stores that continue to report monthly sales, the trend was mostly higher, even though bad weather in the first half of February weighed on overall results. Expectations for overall retail sales in February were for a gain of 3.6% in same-store sales compared with February 2010.

Gap Inc. (NYSE: GPS) same-store sales fell -3% in February 2011, compared with February 2010. Expectations were for a drop of -0.9%. Net sales fell from $838 million to $821 million.

Target Corp. (NYSE: TGT) same-store sales rose 1.8%, compared with estimates of 2.2%. Net sales also rose 2.4%. The company noted that the Easter holiday, which is three weeks later this year, will affect March sales.

Dillard Department Stores Inc. (NYSE: DDS) same-store sales fell -1%, compared with analysts’ expectations of a gain of 2.5%. Sales also fell -1%.

Macy’s Inc. (NYSE: M) same-store sales rose 5.8%, above analysts’ estimates of 3.7%. Sales up 5.9%. Store expects same-store sales up in March-April by 3%.

Limited Brands Inc. (NYSE: LTD) same-store sales were up 12%, more than analysts’ predictions of 8.5%. Victoria’s Secret stores up 15%, and Bath & Body Works stores up 10%.

Stage Stores Inc. (NYSE: SSI) same-store sales down -7.2%, where analysts had expected a gain of 2.5%. Sales down 5.1%. The company blamed bad weather for weak sales in first half of the month.

Pier 1 Imports Inc. (NYSE: PIR) same-store sales rose 8.9% in fourth quarter and total sales up from $396 million to $427 million.

TJX Cos. (NYSE: TJX) same-store sales rose 3%, compared with estimates of 2.8%. Sales rose 3% to $1.5 billion.

Zumiez Inc. (NASDAQ: ZUMZ) reported same-store sales rose 12.8% in February, far better than predictions of 4.2%. Sales rose 18.3% at the company’s 401 stores.

Family Dollar shares are off about -1.5% in early trading this morning. Dillard’s shares are down more than -6%. Macy’s stock is up more than 1.5%, Pier 1 shares are up nearly 6%, and Zumiez shares are up nearly 8%.

Paul Ausick