February Another Strong Sales Month, Data Show

Retailers on Thursday reported another strong month of sales in February, a sign of the country’s continued economic strength during a traditionally slow time of year.

Last month brought more good news to sellers that have for months been riding a wave of consumer demand: discounters and specialty apparel stores, which once again led the charge.

At Wal Mart Stores Inc., same-store sales, or sales at stores open at least a year, were up 10.3% over last February. Gap Inc. was up 12% and Ann Taylor Stores Corp. was up 21.4%.

“Strong, strong, strong,” summed up Michael Niemira, retail analyst for the Bank of Tokyo-Mitsubishi in New York. “We simply can’t stop the consumer from spending or slowing their spending pace.”

Tokyo-Mitsubishi said overall retail same-store sales growth for February was up 7.6%--the highest that figure has been since 1992. Goldman, Sachs & Co. put the rise at 6.7%. Same-store sales are considered the best measure of retail performance, comparing sales with those of the same month from the previous year.

Two Gap Inc. divisions again posted big same-store sales gains: Old Navy, up 31% to 34%, and Banana Republic up 11% to 14%. Gap Stores, however, showed a modest 1% to 4% growth, and GapKids showed a loss of 1% to 4% in same-store sales.

Gap Chief Financial Officer Warren Hashagen said that in the last quarter of 1998 and continuing into February, GapKids’ merchandise mix may have too closely resembled that of Gap’s adult clothing styles--a situation the chain plans to correct this year, he said. He also cautioned against reading too much into one month’s sales in one division of the corporation. “They had a great year last year, so the numbers are up against good numbers last year,” Hashagen said. “In any given month of the year, one of the businesses will be stronger and one of the businesses will be weaker, but we look at the aggregate performance as being what’s important.”

GapKids competitor Gymboree Corp. continued to suffer, posting another month of losses, with same-store sales off 10%.

Among the worst hit of the larger retailers was CompUSA, which had predicted a gain in same-store sales of 4.7% but reported Thursday that it would have a “high single-digit” decrease. The company, squeezed by competition from rivals, said that it anticipates a quarterly loss.

Analysts said there was a surprise in the strength shown in the types of goods not subject to late winter clearance sales, such as jewelry, consumer electronics and even spring fashions. They said sales of those goods reflect consumer confidence.

Analysts also said they are cautiously optimistic that such a strong February, the first month of many retailers’ fiscal year, can usher in a healthy quarter.

Food warehouse stores also reported strong gains, with Costco Cos. up 10% in same-store sales and Wal-Mart’s Sam’s Club up 8.1%.

Also consistent with recent trends, the mid-level department stores continued to suffer. Sears, Roebuck & Co. posted a scant 0.8% rise and J.C. Penney Co. fell 0.4% in same-store sales. However, May Department Stores Co., parent of Robinsons-May, was up 3.7%.