Select Winners & Losers in September Retail Sales (ANF, AEO, GPS, LTD, M, JWN, TGT, ZUMZ, RTH)

We already knew that September was not going to be as cautious in retail sales compared to some of the summer months.  What was not known was that some of the gains were actually blowout figures.  There were a few duds in there as well.  We are reviewing the news and moves in Abercrombie & Fitch Co. (NYSE: ANF), American Eagle Outfitters, Inc. (NYSE: AEO), Gap Inc. (NYSE: GPS), Limited Brands, Inc. (NYSE: LTD), Macy’s Inc. (NYSE: M), Nordstrom, Inc. (NYSE: JWN), Target Corp. (NYSE: TGT), Zumiez, Inc. (NASDAQ: ZUMZ), and in the Retail HOLDRs (NYSE: RTH).  We have compiled the data below.

Abercrombie & Fitch Co. (NYSE: ANF) is really getting its mojo back.  Comparable sales in September here rose a whopping 13% rather than a gain of just under 4% expected.  Shares are trading up 8.6% at $41.91.

American Eagle Outfitters, Inc. (NYSE: AEO) is up after raised guidance and after posting September comparable sales gains of +4.0% versus an expected slight drop in the sales.  Shares are trading up over 5% at $15.80 this morning.

Gap Inc. (NYSE: GPS) was no winner.  Expectations were low and they came in lower: -2%, worse than expected as Banana Republic came in flat versus expectations of about 6% and as Old Navy saw a 5% drop. Shares are trading down 2.3% at $18.25 this morning.

Limited Brands, Inc. (NYSE: LTD) said its stores came in at a surprising 12% in same store sales gains in September, while estimates were down closer to 4%.  Shares are trading up 3.8% at $28.64 in early morning trading.

Macy’s Inc. (NYSE: M) beat its expectations with a same store sales gain of +4.8% versus Thomson Reuters figures of 3.3%.  Macy’s shares were down at the open but shares are now up a whole penny at $23.72.

Nordstrom, Inc. (NYSE: JWN) is throwing a bit of a curve ball this morning because it beat estimates but shares rolled over right after the open.  Its September same store sales were +7.5% versus expectations of about 4.3% according to Thomson Reuters data.  Shares were up as high as $37.90, but now shares are down 1.4% at $37.01 on the day.

Target Corp. (NYSE: TGT) was a bit of a dud as same store sales for September came in at +1.3%.  We saw a Retail Metrics figure out there of 1.9% expected.  Target gave October guidance of ‘low single digit’ gains.  Shares were trading lower this morning but have recovered and now the stock is up 0.3% at $54.23.

Zumiez, Inc. (NASDAQ: ZUMZ) is one where we had already seen some strong guidance, but the strong often get strogner.  Last night the sports apparel maker raised its Q3 guidance after posting a significant rise of 17% in same store sales in September.  Shares are trading up another 7.3% at $24.47 and it hit a new 52-week high this morning of $24.66.

As far as the real vote in retail stocks, the Retail HOLDRs (NYSE: RTH) ETF is still trying to make up its mind.  Shares are up $0.05 at $99.65 but shares have been trading between positive and negative.  In short, the verdict is still out.

JON C.OGG