Considering June's been a mixed bag for some retailers, it doesn't hurt to take a look at how a handful of the specialty retailers fared during the month. Did the cooler, rainy weather squelch foot traffic where these retailers reside? Or did it make for the perfect climate to stroll at the mall?
Chico's FAS (NYSE: CHS ) continues to show its appeal in women's apparel. Same-store sales increased 10.9% in June, with a formidable 42% increase in overall sales. Judging by Chico's continued success, which includes stores under the Chico's moniker as well as the White House/Black Market concept, it's quite arguable that it's the cream of the crop in women's retail.
AnnTaylor (NYSE: ANN ) continued to rely on the ongoing strength from its Loft chain, though things may be looking up for its self-titled chain as well. It reported total same-store sales up 11.9%. That figure represented a heartening 6.7% increase for Ann Taylor, and a 20.9% increase for Loft. Total sales for both divisions grew by 27.1%.
In AnnTaylor's most recent quarterly conference call, transcript courtesy of CCBN StreetEvents (registration required), market research had revealed that it was siphoning off customers from Gap (NYSE: GPS ) and Limited (NYSE: LTD ) . So how did those retailers fare in June? Gap sales stumbled a bit, despite the company's moves to widen its demographic, an initiative that includes a new advertising campaign that's in the works. On the other hand, Limited reported much more heartening sales figures, with a hefty share from the Bath & Body Works concept, which held its big-bash semiannual sale during the period.
Who wasn't on the top of the list of women's retailers? Talbots (NYSE: TLB ) continues to struggle, with June same-store sales increasing a mere 0.9% and total sales up 7%. It also lowered its second-quarter earnings outlook, causing its shares to tumble in today's trading.
All in all, the figures don't represent many big shifts from May. Once again, Talbots may look cheap, but it seems evident it's still missing in its appeal to female shoppers. AnnTaylor continues to show strength in Loft, and some signs that Ann Taylor itself is becoming a more popular destination. Trading at 15 times forward earnings, AnnTaylor looks a lot cheaper than Chico's, with its P/E of 29, but there remains the idea that the latter company's shares have a rich price tag to match its continued impressive growth.
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Alyce Lomax does not own shares of any of the companies mentioned.
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