Wet Seal Inc. led teen retail stocks higher Thursday, after many companies in the sector reported better April same-store sales than analysts expected.
Wet Seal said same-store sales, or sales at stores open at least a year, fell 1.9 percent in April. Analysts had predicted a steeper decline.
The company raised its first-quarter profit guidance based on the results. By late morning, shares were up 26 cents, or 7.2 percent, to $3.86.
Same-store sales is a key indicator of retailer sales since it measures growth at existing stores rather than newly opened ones.
All retailers benefited from an extra selling day in April compared with the year-ago period because the Easter holiday fell in March instead of April this year.
Many retailers have struggled to keep sales growing as more consumers have cut back on spending as the prices of many necessities have skyrocketed. Teen retailers may have been more insulated from the spending slowdown since teenagers are less responsible for buying food, gas and essential consumer products and may be more willing to spend for new clothing.
Abercrombie & Fitch Co. reported a same-store sales rise of 6 percent, far higher than the 2.3 percent growth analysts expected. Shares rose $1.27 to $73.93.
Aeropostale Inc., which prices its clothes at lower price points than its competitors, reported a same-store sales gain of 25 percent, leading the chain to boost its first quarter guidance. Analysts expected an increase of just 7.1 percent.
Shares climbed 60 cents to $32.80. They earlier hit a 52-week high of $34.02.
Buckle Inc. and American Eagle Outfitters Inc. also reported same-store sales above analyst estimates. Buckle shares fell 15 cents to $49.36, but earlier hit a 52-week high of $51.30. American Eagle shares fell 29 cents to $18.07.
Two teen retailers missed Wall Street estimates for April sales _ Hot Topic Inc. and Pacific Sunwear of California Inc.
Hot Topic shares edged up 3 cents to $4.96 while Pacific Sunwear shares rose 20 cents to $12.57.
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